EXPLORING OPERATIONAL PATHWAYS FOR ARTICLE 2.1(C) OF THE PARIS AGREEMENT IN AFRICA

Managing High Carbon Assets for Economic Development and Clean Energy Diversification: A Case of Mozambique

Mozambique, a developing country facing a spectrum of development challenges, recently unveiled significant potential in high-carbon assets, particularly Liquid Natural Gas (LNG). In 2010, large natural gas deposits, estimated at 277 trillion metric cubes, were discovered in the Rovuma Basin, off the country’s northern coast. More recent estimates in 2020 suggested that the country now holds Africa’s third-largest proven natural gas field, in addition to discoveries of mineral coal reserves estimated at 20 billion tonnes. This emerging context prompts a critical examination of how Mozambique’s economic development trajectory aligns with the Paris Agreement, specifically Article 2.1(c).

This discourse acknowledges both the potential opportunities and challenges associated with managing such assets within the framework of international climate commitments. With its unique developmental context marked by poverty, inequality, and vulnerability to climate shocks, Mozambique serves as a compelling case study. While these discoveries offer opportunities for economic growth and alleviating socioeconomic challenges, they also pose significant risks to climate resilience and emission reduction targets.

Article 2.1(c) of the Paris Agreement emphasises the necessity of aligning financial flows with low-carbon and climate-resilient development pathways. For Mozambique, this entails adopting a strategic approach to managing high-carbon assets that balance economic imperatives with climate considerations. To strike this balance, Mozambique can explore avenues to diversify its energy portfolio and invest in clean energy technologies. By leveraging revenue from high-carbon assets, the country can fund initiatives to enhance climate resilience and transition towards a low-carbon economy, including new growth models tied to sustainable development and green industrialisation.

However, transitioning away from high-carbon assets presents challenges, such as assessing potential risks like stranded assets and ensuring developmental pathways are resilient to climate impacts. This requires robust governance frameworks, institutional capacity building, and stakeholder engagement. Ultimately, effective management of high-carbon assets in Mozambique must align with Article 2.1(c) principles, paving the way for sustainable development that fosters both prosperity and resilience in the face of global climate challenges.

This pathway paper aims to offer a comprehensive framework for operationalising Article 2.1(c) of the Paris Agreement in nations facing the dilemma associated with recent discovery of high-carbon assets and the urgent need to meet the goals of the Paris Agreement, using Mozambique as a case study. It explores processes and considerations for the development of a pathway to manage these resources effectively and strategically to developmental outcomes while aligning with the agreement.

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