CEOs call for swift transition to renewable energy

The list of challenges also includes a lack of financing instruments that are well-suited to the development of renewable energy projects and a lack of skills related to climate change.

Speaking during the meeting, TotalEnergies Marketing Tanzania Limited managing director Jean-Francois Schoepp said to address the challenges, it requires concerted efforts from all stakeholders in the energy transition journey.

He commended the government for its commitment to promote renewable and other decarbonized energies more widely and for continuing to reform regulatory initiatives to support renewable energy initiatives and projects.

The government is already working on a policy and regulatory framework for renewable energy, a move that industry captains commended on Tuesday.

With the effects of climate change knocking at the door, Tanzania has already started promoting renewable energy in its 2025 power plan.

The opportunity to develop renewable energy technologies (wind and solar) as alternative energy sources to diversify its energy mix is part of the 2025 plan.

As a reminder, according to Mr Schoepp, today the renewable energy sources covered are only two percent of the total energy mix in Tanzania.

“TotalEnergies deeply encourages the government to go further and to define more ambitious targets for renewable energy,” recommended Mr Schoepp.

“Looking at Tanzania, the country’s geography (large land availability, quality of sun and wind) offers big potential for renewable energy, most probably the biggest in the East African region.

“This means that Tanzania could play a leading role in the energy transition for the region.”

TotalEnergies, which has been in Tanzania for more than 50 years, is committed to being a key player in the renewable energy sector and, more specifically, in Tanzania.

As of today, Total Energies, which has been investing in and promoting renewable energies since 2011, has more than 10GW of installed capacity, with an additional 6GW under construction, according to Mr Schoepp.

The ambition of the company, he added, is to reach a total of 35GW installed capacity by 2025 and 100 GW by 2030.

To reach these ambitious targets, the company is making numerous investments, and to date, it has been reported to have solarized more than 2700 TotalEnergies sites throughout the world.

He said 25 percent of the global company’s investments are dedicated to speeding up decarbonization, with an investment objective of more than $60 billion in renewable projects by 2030.

Within 5 years, the company has invested more than $10 billion in renewable energy, mainly in photovoltaic electricity and offshore wind, averaging $2 billion/year.

To Dalberg Advisors partner and Tanzania director Devang Vussonji, the biggest challenge in addressing climate change is around skills.

“Climate change and environmental solutions are still new, thus impeding efforts to shift to greener energy,” he observed.

To address the challenge, Mr Vussonji urged more private companies to take steps meant to address the question of skills.

He said that by being more energy efficient, it will help businesses reduce operational costs while helping to curb the climate crisis at the same time.

“It is high time we made our operations more efficient while becoming cleaner,” suggested Mr Vussonji.

CEOrt chairperson, Mr David Tarimo, pledged to actualize commitments by members to make progress from where they are.

“We will look at what effectively is part of the group structures and policies in terms of driving climate-related activities,” he promised.

He added: “It is a part of the learning process. This is a significant CEOrt’s priority for this year.”

The CEOrt encouraged business leaders to embrace the notion of responsible corporate citizenship, recognising that sustainable businesses not only contribute to environmental preservation but also create long-term value for stakeholders.

By integrating environmental, social, and governance considerations into their decision-making processes, companies can effectively address climate-related challenges and drive positive change, according to a press release circulated by the CEOrt to the media earlier this week.

“The knowledge forum on sustainable investment serves as a call to action for captains of industry to reaffirm their dedication to a sustainable future for Tanzania,” the press release reads in part.

It further states: “It is an opportunity for business leaders to explore innovative strategies, share best practices, and collectively contribute to shaping an environmentally conscious and prosperous nation.”