Economy at Large The Economy: Benefits from Net-Zero

AUTHOR: David Jarrett and Team Editor@ RDJ Publishing and RDJ Group ChiefExecutiveOfficer

HyphenCEOMarcoRaffinettisigningtheFIAinNamibia,withPresidentHageGeingob Namibia Courtesy:HyphenHydrogenEnergy26/05/2023

In this new age of climate change and decarbonization, there is a reticence to let go of the “old ways” and stick to the status quo. As Namibia is moving towards being a leader in green hydrogen and ammonia production through the abundance of solar and wind energy, the same is happening in regard to major oil finds The latter being better known and a mainstay of the economy as we know it, the balance is still to be understood generally as well as any benefits to be derived from a net-zero approach

Economic growth, often gauged through the lens of gross domestic product (GDP), serves as a vital yardstick for assessing a nation's prosperity by quantifying the total value of goods and services generated within its borders over a specified period While GDP offers a fundamental measure, it's important to acknowledge its limitations in encapsulating the full spectrum of economic well-being. Nevertheless, when complemented by other metrics, GDP remains an invaluable tool for illuminating avenues of economic advancement and identifying areas ripe for improvement. Expanding on this framework involves exploring diverse strategies and policies that foster sustainable growth, ranging from investing in infrastructure and technology to nurturing innovation, bolstering education, and promoting entrepreneurship

What really is net-zero?

Net-zero requires in its simplest terms, the production of greenhouse gases by society should be balanced with its rate of removal from the atmosphere

By harnessing these avenues, nations can unleash their economic potential, foster job creation, enhance living standards, and cultivate resilient economies capable of weathering global challenges Thus, while GDP may not provide a comprehensive picture, its integration with a broader array of indicators helps chart a course towards inclusive and robust economic prosperity Net-zero impacts on an economy can thus be gauged by its GDP gains or losses, essentially showing if growth or contraction has occurred.

Greenhouse gases being the focal point, are removed through various means resulting in mitigation and Namibia is well endowed with renewable energy resources so making an opportunity for economic growth. Transitioning towards a net-zero economy offers a unique opportunity to stimulate economic growth while simultaneously addressing climate change and sustainability challenges and can occur through several avenues:

The implementing of infrastructure projects focused on sustainable transportation such as electric or green hydrogen powered vehicles, energy-efficient buildings equipped with sensors and low energy demand equipment, and resilient water management systems inclusive of desalination and reverse osmosis water treatment not only reduces carbon emissions but also stimulates economic activity

With the provision of incentives, subsidies, and regulatory support can also encourage industries to adopt cleaner production methods, invest in green technologies, and reduce their carbon footprint while maintaining economic competitiveness The use and production of ammonia, green hydrogen, solar panels and of course solar water heaters is well underway or within the reach of Namibia to capitalise on As pointed out by others, A preliminary analysis by the World Bank of the green hydrogen market and levelized cost of hydrogen (LCOH) shows that Namibia couldproducehighlycompetitivegreenammonia

Encouraging circular economy practices, such as recycling, waste reduction, and product reuse, can not only minimize resource consumption and waste generation but also stimulate economic activity through the creation of new industries and job opportunities in the recycling and remanufacturing sectors Again this is an area that Namibia currently is showing growth and has the potential to create additionalopportunities

The Hyphen project for example seeks to invest NAD 200 billion and ultimately 90% of 3 000 full-time jobs. Although much smaller, HDF’s renewstable project will create 45 fulltime jobs and Daures Green Hydrogen Village will not only provide 100 jobs but see a NAD 200 million investment in Phase 1, these with others such as cleanergy and HyIron for examplehaveplacedNamibiafirmlyonthemap.

The benefits of net-zero once fully understood can only benefit the Namibia economy and complement the oil and gas sector gains As always, conversation continues infocus@rdjpublishing africa

Readings:

https://climateinstitute ca/net-zero-is-compatible-with-economicgrowth-if-we-do-it-right/ https://gh2namibia.com/ https://hyphenafrica com/projects/ https://www energyvoice com/renewables-energytransition/hydrogen/africa-hydrogen/508012/hyphen-sets-sailnamibian-hydrogen-exports/ https://www renewstable-swakopmund com/ https://energynews.biz/first-phase-of-daures-green-hydrogenvillage-starts-construction-in-namibia/