Africa Needs $2 Trillion for Green Manufacturing, McKinsey Says

Africa’s lack of industrial development puts it in a strong position to develop low-carbon manufacturing without the costs of transitioning from fossil fuel-based factories, McKinsey & Co. said.

In the process of striving toward net-zero emissions by 2050, the continent could create a net 3.8 million jobs, McKinsey said in its Africa’s Green Manufacturing Crossroads report, which was partially funded by the U.K. government and released Monday. However, to hit that level would require investment of $2 trillion in manufacturing and power.

“Africa has an opportunity to leapfrog high emitting manufacturing technologies and build a low-carbon manufacturing sector from the ground up,” Kartik Jayaram, a senior partner in McKinsey’s Nairobi office, said in a statement accompanying the report. “Africa could avoid future costs by sidestepping the expensive transition from fossil fuels to renewables.”

Still, without any commitments to decarbonize emissions from manufacturing, Africa could almost double to 830 megatons of carbon dioxide equivalent by 2050, McKinsey said. 

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