(Commonwealth)_ Delegates from over 30 Commonwealth countries converged at the 4th Biennial Commonwealth Sustainable Energy Transition (CSET) Forum to drive home the urgency for enhanced South-South cooperation to drive equitable and sustainable energy transitions. The four-day event witnessed delegates convene both in person and virtually to debate an array of topics encompassing energy, including clean energy, clean cooking, local value addition, artificial intelligence in energy, and financing energy transitions, including access to sovereign wealth funds.
One of the forum’s strengths was the imperative for South-South cooperation—cooperation among developing nations, namely for technology transfer, knowledge exchange, and capacity development. The partnerships aim to assist countries in achieving global climate goals and advancing their own sustainable development priorities. Experts described South-South cooperation as a crucial approach to guarantee inclusive, equitable, and contextually relevant energy transitions in the Commonwealth.
Ghana sets an example of how such cooperation is bringing real results. The country is implementing a carbon market system in accordance with Article 6 of the Paris Agreement and has 12 ongoing initiatives. The initiatives have seen eight million tons of carbon credits produced as well as the creation of 5,000 green jobs. Ghana avoids emissions and trades its carbon credits on the international market to countries like Switzerland, Sweden, and Singapore. The Ghanaian delegation highlighted how learning from peers in countries such as Kenya and Senegal helped them to take advantage of the global carbon market and inspired them to propose a platform for South-South cooperation within the Commonwealth. The Commonwealth Sustainable Energy Transitions Agenda team has approved this proposal and will further develop it.
The event also addressed challenges faced by countries in securing long-term investments needed for clean energy infrastructure. No matter how willing many countries are to transition, economic and geopolitical risks could delay doing so. Members debated why the Commonwealth, as a diverse member institution, provides such a special forum for comparing best practices and sharing experiences of states at various stages of their journey towards energy transition. Through this process of cumulative knowledge sharing, it is perceived that the member states can be spared from most common mistakes and can adopt tried-and-tested strategies more effectively.
Namibia, by its Ministry of Industries, Mining, and Energy, highlighted the practical issues with increased use of renewable energy. They include matters of enhancing access to energy and upgrading grid infrastructure before countries can harvest the maximum benefits of the shift to renewable energy sources. The Namibian delegation highlighted that achieving increased energy access as a fundamental step toward unleashing more renewables in national grids is essential.
On the final day of the forum, the topic of carbon pricing and taxation was addressed. The delegates were in discussion regarding the prospects for carbon pricing as a means of reducing emissions but covered its social implications, especially for lower-income communities. The regressive effects of carbon taxation and how they might negatively impact vulnerable groups of individuals were raised as points of concern. There was broad agreement on the need for compensation mechanisms to protect low-income families and measures to prevent industries from relocating their activities to other regions with less carbon regulation, which has been labeled as the “leaky bucket” problem.
Other proposals included ringfencing the carbon tax revenues to fund green projects, considering both the benefits and drawbacks of doing so, and recycling revenues back into the economy to fund sustainable development. The Forum also emphasized the value of learning from Commonwealth case studies on how different countries are embracing carbon pricing schemes tailored to their specific needs.
Collectively, the CSET Forum reiterated that energy transitions must be inclusive, holistic, and collective. The CSET Forum recognized South-South cooperation as a core approach to allow Commonwealth countries to bridge gaps, attract investments, and meet climate goals in a manner that ensures clean energy benefits are equitably distributed between societies.
