bp, Equinor, Shell, and TotalEnergies have announced a joint commitment to invest in initiatives supporting the UN Sustainable Development Goal 7 (SDG 7), which aims to ensure universal access to affordable, reliable, sustainable, and modern energy.
Together, the four energy giants have pledged $500 million in funding to drive positive energy access impacts in key regions over the coming years.
Rising Challenges to Energy Access
Despite ongoing efforts, progress towards achieving universal energy access has stalled, particularly due to global economic challenges and rising energy prices. In 2022, the number of people without access to electricity worldwide increased by approximately 10 million, reaching 685 million. Additionally, 2.1 billion people, mainly in Sub-Saharan Africa and Southeast Asia, lack access to clean cooking solutions, with women and girls disproportionately affected by the lack of safe and efficient domestic energy.
Collaborative Investment to Address Energy Access
The joint investment, amounting to $500 million, will primarily target Sub-Saharan Africa, South, and Southeast Asia. The initiative seeks to improve energy access for underserved communities, providing millions with electricity and cleaner cooking options.
The capital will be directed towards a range of solutions, including solar home systems, mini/metro grids, clean cooking technologies, and enabling innovations such as energy storage, e-mobility, and management systems. The project is designed to support SDG 7 while also creating additional benefits, such as job creation and enhanced health outcomes.
A global private equity firm with expertise in impact investing will manage the funds. Their role will be to strategically deploy capital in ways that generate both social and financial returns, while collaborating with governments, international organizations, and other stakeholders to address market barriers and share insights.
Leadership Comments
Murray Auchincloss, CEO of bp, said, “While it’s early, we hope that this joint investment will contribute to efforts tackling the urgent issue of energy access. Over time, it can help build a more inclusive energy future for millions who lack access today.”
Anders Opedal, President and CEO of Equinor, emphasized, “This investment brings together four leading energy companies, focusing on emerging countries. We believe it will help close energy access gaps, which is crucial for achieving a just and equitable energy transition.”
Wael Sawan, CEO of Shell, added, “We’re committed to advancing universal energy access, which has the potential to transform lives. Through this investment, we aim to overcome key challenges and drive meaningful change.”
Patrick Pouyanné, Chairman and CEO of TotalEnergies, highlighted his company’s commitment to energy accessibility: “Around a third of our electricity development will focus on emerging countries, benefiting 40 million people with access to electricity. Additionally, we’re investing $400 million in clean cooking solutions in Africa and India to help 100 million people. With this new joint initiative, we’re contributing to impactful local projects that support SDG 7.”
This collaboration underscores the importance of collective action in overcoming energy access challenges and accelerating the path to a more equitable and sustainable global energy future.
