2X Global, in collaboration with Aspen Network of Development Entrepreneurs (ANDE) and supported by Canada’s International Development Research Center (IDRC), is launching an innovative research project seeking to improve the outcomes for women-led clean energy enterprises through applied research. This applied research will focus on Sub-Saharan Africa, Latin America and the Caribbean, and Asia-Pacific.
We are looking for local and women-led fund managers across these markets with an investment thesis and strategy that has a gender and climate lens and seeks to contribute to a low carbon energy transition. 2X Global, with its 2X Ignite initiative and regional research leads, will be selecting 10-20 gender- smart fund managers who will receive support to develop case studies that demonstrate the impact potential at the nexus of gender and climate, enabling a clean energy transition.
We will be selecting local, women-led fund managers who are originally from and operating in Sub-Saharan Africa, Latin America & the Caribbean, or Asia-Pacific with an investment thesis and strategy that has a gender and climate lens, and seeks to contribute to a low carbon energy transition. Emerging and first-time fund managers, evergreen vehicles and non-traditional fund structures are welcome. It is desirable for the fund manager to have made some investments under its thesis but these can be early track record deals.
The project is expected to run over a period of 12-24 months during which we will co-create a new or enhance an existing Impact Management & Measurement System (IMM), and collect impact data over a meaningful time period. The fund manager must consent to share key metrics of the IMM and agree for a case study to be published open access on the 2X Global website and research publications for academic and practitioner audiences. Confidential information can be defined collaboratively and removed from publication. To learn more about the project, please contact us.
If you are interested in contributing to this research project, please complete the Expression of Interest form on the 2x Global website here. 2x Global will be accepting and reviewing expressions of interest on a rolling basis and encourage early submissions. Fund managers will be selected by year end 2024.
The CC Facility Learning Hub is seeking to build upon the knowledge within its inaugural report on gender-responsive blended climate finance transactions in the energy sector, through engaging with a local institute to collaborate on the design and implementation of a research project (“the project”).
The project will inform key data gaps in the gender-climate nexus, specifically within the blended climate finance market.
Growing evidence points to women playing a critical role in achieving climate goals, acting as benefit-multipliers and important agents of change at all levels of society. There is thus an urgent need to leverage their roles as consumers, workers, borrowers, entrepreneurs, and community leaders and increase investments into transactions that incorporate both gender and climate considerations.
Yet, mainstreaming gender in climate vehicles often encounters a myriad of barriers. This is apparent in the blended finance market, where out of the 551 climate blended finance deals in Convergence’s Historical Deals Database (HDD), only 22% were gender-responsive, a considerably lower proportion than the overall trend in the blended finance market where 31% of the deals were gender-responsive.
The project will therefore consist of conducting research with the goal of helping to mobilize higher levels of private sector capital into gender responsive climate transactions.
Click here to view the Request for Proposal (RFP) for details.
The Economic Community of West African States (ECOWAS) Sustainable Energy Forum (ESEF) 2024, held in Abidjan, Côte d’Ivoire, featured a pivotal session on “Women Entrepreneurs in the Clean Energy Sector: Challenges and Opportunities.” This session provided an invaluable platform to discuss gender inclusivity in energy transitions, highlight innovative projects, and drive momentum for policies fostering gender equity.
The ECOWAS region faces pressing energy challenges, with only 57% of its 420 million people having access to electricity and 20% to clean cooking fuels according to the ECOWAS Directorate of Energy and Mines (DEM). Against this backdrop, ESEF 2024 focused on advancing sustainable energy policies, with gender equity being central to achieving these goals.
The ECOWAS Policy for Gender Mainstreaming in Energy Access (2017) and directives such as the Gender Impact Assessment in Energy Projects have laid a foundation for integrating women into the energy transition (ESEF-2024-Concept-Note). However, systemic challenges persist, necessitating platforms like ESEF to spotlight transformative solutions.
The Women and Clean Energy in West Africa (WOCEWA) project, initiated in February 2024, was highlighted during ESEF as a vital initiative under the Centre for Energy for Development: A Call for Action Initiative(CEDCA). Aligned with the ECOWAS Policy for Gender Mainstreaming in Energy Access, WOCEWA collaborates with energy-sector small and medium enterprises (SMEs) to empower women and address gender-specific challenges within their operations.
Key Components of WOCEWA:
WOCEWA’s mission embodies the transformative potential of gender-inclusive energy strategies, equipping women with the tools, skills, and opportunities needed to excel in renewable energy
Their contributions exemplified the breadth of female expertise in West Africa’s energy landscape.
Bipasha Barua, CEDCA’s Gender Equality and Inclusion Adviser, provides essential insights into systemic barriers women face in clean energy transitions:
Bipasha’s assertion that “energy is power” reinforces the urgency to dismantle gender hierarchies and integrate gender-sensitive approaches in energy policies and projects. Her work with CEDCA aligns perfectly with WOCEWA’s mission, emphasising targeted education, inclusive policies, and proactive measures to ensure equitable access.
Despite challenges, the clean energy sector offers immense potential for women entrepreneurs:
ESEF 2024 illuminated the indispensable role of women in achieving ECOWAS’s sustainable energy targets. Initiatives like WOCEWA and insights from experts like Bipasha Barua underscore the transformative potential of a gender-inclusive approach to energy transitions.
CEDCA remains committed to championing these efforts, ensuring that women across West Africa not only participate in but lead the region’s clean energy revolution.
As COP29 concludes in Baku, Azerbaijan, global leaders and stakeholders reflect on the progress made in addressing the climate crisis. With its focus on sustainable energy transitions, equitable climate finance, and inclusive policymaking, this year’s conference highlighted the critical role of clean energy in achieving climate resilience. These themes resonate strongly with the priorities of CEDCA (Clean Energy for Development: Call to Action), which emphasizes knowledge translation, community-led solutions, and gender-inclusive strategies for clean energy development.
COP29 reinforced the urgency of transitioning to clean energy to mitigate the impacts of climate change. The energy sector remains the largest contributor to global greenhouse gas emissions, responsible for 75% of global emissions according to the International Energy Agency (IEA). Discussions at the conference stressed the need for rapid decarbonization and increased investment in renewable energy infrastructure.
CEDCA’s initiatives align with these goals, advocating for knowledge-driven, scalable energy solutions tailored to local contexts. Its projects focus on bridging research and practice to ensure energy transitions are sustainable and inclusive.
One of COP29’s key takeaways is the importance of localized, context-specific approaches to clean energy. Global solutions must be adaptable to the unique needs of communities, particularly in low- and middle-income countries (LMICs). CEDCA’s projects emphasize this principle, advocating for community-driven initiatives such as solar microgrids and clean cooking technologies.
For example, decentralized renewable energy systems have been transformative in rural areas of sub-Saharan Africa and South Asia, providing reliable and affordable energy to communities previously reliant on fossil fuels. These systems align with COP29’s push for technologies that not only reduce emissions but also empower local populations.
COP29 also underscored the critical role of climate finance in accelerating energy transitions. A renewed pledge to mobilize $100 billion annually for climate action highlighted the urgency of channelling funds toward clean energy projects. However, equitable allocation remains a challenge.
CEDCA advocates for innovative financing models, such as blended finance and community contributions, to ensure resources reach underserved areas. These models are essential for scaling renewable energy projects while fostering local ownership and sustainability.
Gender equity was a major focus at COP29, particularly in discussions on climate adaptation and resilience. Women, especially in LMICs, face systemic barriers to accessing clean energy and participating in decision-making processes. Yet, they play a critical role in driving community-based solutions.
CEDCA’s projects align with this emphasis, advocating for gender-responsive approaches to clean energy. For instance, initiatives promoting women’s leadership in renewable energy sectors have demonstrated significant benefits, from increased adoption rates to enhanced social trust. These findings echo COP29’s call for inclusive policies that prioritize the voices and needs of marginalized groups.
A central theme at COP29 was the need to turn research into actionable solutions. CEDCA’s projects address this gap by providing tools and strategies for effectively bridging the divide between academic findings and real-world applications.
Key priorities include:
These approaches are essential for ensuring that clean energy transitions are not only scientifically robust but also practical and impactful.
As COP29 draws to a close, the message is clear: clean energy is not just a technological challenge but a social and economic imperative. By integrating insights from COP29 and CEDCA’s initiatives, we can advance sustainable, equitable energy transitions that benefit all.
Explore our latest findings and insights in the publication Clean Energy for Development: A Call to Action on IDS OpenDocs.
Powering Bolivia: Decentralised Renewables for Economic Growth and a Just Transition
The GENERIS-Bolivia project aims to develop policy guidelines to promote an energy transition that will strengthen Bolivia’s productive structure, with special emphasis on the role of decentralised renewable energies in the economic performance of micro- ,small- and medium-sized enterprises (MSMEs) and in job creation.
South American countries have made international commitments to energy transition within the framework of the Nationally Determined Contributions (NDCs), posing multiple challenges. These challenges require coordinated actions among national actors to reduce greenhouse gas (GHG) emissions and mitigate their impacts without compromising development. In Bolivia, as in other countries in the region, these challenges arise not only at the macroeconomic level but also at the sectoral level, placing pressure on the energy sector’s ability to meet the conditions necessary for inclusive development.
Currently, Bolivia’s energy mix is predominantly composed of fossil fuels: 80% natural gas and 12.9% oil. Yet the country has access to a diverse range of renewable energy sources, particularly solar, in a large part of the national territory. This would allow it to transition to cleaner sources of energy. Thus, the NDCs proposed by the country propose to increase the production of energy from renewable sources in the primary mix. However, natural gas and electricity generated mostly with fossil resources are an essential source of foreign exchange for the country. Between 2019 and 2023, fossil fuels accounted for a quarter of the value of exports. As a result, Bolivia’s macroeconomic stability rests in the short and medium term, at least partially, on an export basket in which fossil fuel commodities are essential.
The energy transition can create opportunities in the domestic market by increasing household and corporate access to high-quality energy while reducing dependence on exportable primary fossil fuels and certain imported fossil derivatives. Currently, 99.2% of urban households and 81.5% of rural households in Bolivia are connected to the power grid. However, in the Beni and Pando districts, rural access drops to 70%, leaving approximately 200,000 families nationwide without reliable electricity service. Among urban micro and small production units in the industrial sector, 98% are connected to the power grid, but only 6% have access to natural gas, with LPG (Liquefied Petroleum Gas) usage (22%) largely offsetting this limitation. In rural areas, while electricity is widely available, access to natural gas and even LPG is even more limited among households and agricultural and forestry production units.
However, energy access numbers obscure other energy, economic, and cultural factors that influence the level and way productive units consume energy and, consequently, their economic performance and ability to create quality employment. These factors include power outages, voltage drops, high energy costs, and lack of access to natural gas, among others. These challenges impede the performance of productive units, primarily rural and family-based enterprises, which are crucial for meeting domestic food market demands and preserving Bolivia’s food sovereignty. These enterprises also have the potential to integrate into global agrifood value chains, where environmental sustainability—through green certifications required by developed countries—is becoming increasingly important. Therefore, providing these productive units with access to renewable energy sources and incorporating distributed energy systems could enhance the quality and reliability of energy access, resulting in numerous benefits:
Fish farming is a great example of how adopting Distributed Renewable Energy Access (DREA) systems can support an energy transition aligned with sustainable development goals. These systems can be used by agricultural and forestry productive units, as well as MSMEs that process these resources. River fish farming involves more than 1,500 productive units in Bolivia. Although these units have access to electricity, it is typically provided under a residential tariff structure, as productive activities are integrated into the home. However, this electricity supply comes with high periodic bills when usage is intensive, creating challenges for producer families due to their inconsistent cash flow.
Because of these conditions, gasoline is the primary fuel used by production units to oxygenate the pools, clear weeds from the edges, transport feed, and empty the pools for annual cleaning. However, accessing this can be difficult: its relative price is high and there are monthly quotas limiting the amount that can be purchased. This forces households to endure long lines to obtain it, and even then, the quota often falls short of meeting their productive needs.
In this context, DREA offer a viable solution to generate the electricity required for the various activities involved in fish farming. These systems not only improve the economic performance of production units but also affect the organisation of time for the families managing them by reshaping how time is allocated.
This replicable model highlights the positive impact DREA systems can have on the economic performance of rural MSMEs, the well-being of their members, and their contribution to Bolivia’s energy transition.
Growing evidence suggests that women play a critical role in achieving climate goals; both as leaders in advancing climate solutions, as well as beneficiaries. There is therefore an urgent need for more investments into transactions that incorporate both gender and climate considerations.
Yet, mainstreaming gender within climate vehicles often encounters a myriad of barriers. This is apparent in the blended finance market, where out of the 551 climate blended finance deals in Convergence’s Historical Deals Database (HDD), only 22% were gender-responsive, a considerably lower proportion than the overall trend in the blended finance market where 31% of the deals were gender-responsive. Recognizing this, the Catalytic Climate Finance Facility (CC Facility) Learning Hub recently released its inaugural report on gender-responsive blended climate finance transactions in the energy sector. The report provides an analysis of the data behind these transactions and highlights case study examples. It also explores the challenges to successfully launching gender-energy blended transactions and suggests recommendations for investors and practitioners to help increase their effectiveness in implementing these deals.
A commonly discussed challenge was simultaneously addressing climate and gender objectives within the same transaction. Often, investors approach each in a silo, understanding one of the objectives but failing to be proficient in the other. This is especially the case for smaller funds that do not possess large technical assistance (TA) facilities, or for institutions with limited resources that must prioritize impact measurement and monitoring for a single or small set of objectives.
A lack of standardized frameworks and metrics for these dual objectives further complicates efforts. While climate metrics, especially those for mitigation, are more established, investors and practitioners repeatedly signaled the lack of standardization in gender-related metrics as a significant challenge for structuring and investing in gender-responsive climate transactions. Moreover, limited or non-disaggregated data can also make globally recognized metrics and criteria neither useful nor relevant.
The report suggests several ways of overcoming these challenges to integrate both gender and climate within a transaction. One is through monetizing the gender co-benefits of climate vehicles through gender credits. Co-benefits are advantages that climate solutions provide above and beyond helping to fight climate change. Tacking gender co-benefits onto a climate transaction can be strategic since it capitalizes on investor demand for climate while adding a premium for gender equality. The second method is by using TA and financial incentives simultaneously to hit gender key performance indicators (KPIs) within climate transactions.
Two cases demonstrate how gender co-benefits can be monetized through the sale of gender credits.
The first is the Clean Impact Bond (CIB), launched by Sistema.bio in 2022. The CIB is a type of development impact bond that contributes to the broader use of clean cooking technologies by increasing access to clean appliances for low-income customers across Africa. It does this by drawing on upfront funding for small- and medium-sized enterprises (SMEs) that manufacture and distribute these appliances. The outcome buyer will purchase the health and gender co-benefits generated from the use of these appliances, as a type of credit. Considering women are largely the demographic positively affected by clean cooking, gender co-benefits can play an important role in such a vehicle.
The CIB demonstrates that there is a viable way to monetize gender co-benefits in the climate finance market by accomplishing two crucial outcomes: i) it provides data-driven metrics for quantifying the impact and monetary value of gender and health, and ii) it demonstrates the existence of willing buyers for gender and health co-benefits. In this way, the CIB offers a starting point for determining a revenue stream for gender credits, as well as identifying the presence of outcome funders.
The second case that exemplifies the use of gender credits is the W+ Standard issued by WOCAN. The W+ Standard allows projects to certify quantifiable contributions to women’s empowerment and emissions reduction. For example, carbon emissions reduction projects that deliver benefits to women can add the W+ Standard to their existing projects, which can then be sold for a premium price to carbon buyers seeking co-benefits for gender equality/women’s empowerment, or to address SDG 5 (Gender Equality). One credit is equivalent to a 10% improvement in the lives of women in the project community.1 The W+ Standard requires that at least 20% of the price of the sold credit is provided to women of the project community, to support their self-determined goals. In general, incorporating gender credits into a transaction can encourage more rigorous tracking and reporting on gender-related outcomes, leading to greater transparency and accountability in how investments impact women and gender equality.
A further recommendation within the report for incorporating a gender-lens in climate transactions is to deploy TA and financial incentives together. One barrier to incorporating a gender-lens is the lack of knowledge of how to do so; TA can provide the necessary training to help a deal sponsor develop and measure gender outcomes. Financial incentives can then be an important tool to encourage companies to follow-through and meet these established goals.
An example of a transaction that has done this is the Beyond Finance Asia-Pacific Facility, a blended finance initiative that aims to enhance women’s access to funding and essential services in the Asia-Pacific and Sub-Saharan Africa regions. Beyond Finance uses TA to help incorporate a gender-lens in the development of climate adaptation products. When KPIs are achieved, it triggers the provision of interest rate reductions for investees.
Meanwhile, Deetken Impact, a fund manager, uses TA to improve the gender scores of its portfolio companies. As part of its due diligence process, Deetken devised a gender scorecard that covers five main principles: women in leadership and governance; workplace equity; professional development programs for women; value chain and advocacy; and community engagement. Through their TA training programs, they have been able to improve outcomes across each of these focus areas, deepening impacts and moving beyond simple headcounts. Deetken also uses TA to improve gender outcomes within large-scale solar projects while partnering with Inter-American Development Bank (IDB) Invest, which provides financial incentives in the form of lower interest rates to encourage a transaction to hit its climate and gender milestones.
These cases demonstrates that while financial incentives can be a powerful motivator for prioritizing gender outcomes, TA-enabled advisory support is a necessary precursor to creating and reaching reasonable and customized targets.
Whether a transaction uses gender credits to monetize the co-benefits of gender in climate transactions or incentivizes gender-lens investing through deploying financial instruments and TA simultaneously, there are opportunities for blended finance deal sponsors to break down silos to achieve dual social goals. Gender credits can help create a scalable, standardized framework for investors to understand the impacts of gender-lens investing. Meanwhile, gender advisory support can help transactions meet KPIs, and even unlock financial incentives such as reduced interest rates, that create momentum for reaching gender goals. By adopting these strategies, investors can more effectively align their financial goals with broader social and environmental impacts, driving progress towards a just and resilient transition.
In Sub-Saharan Africa, agricultural communities face a myriad of challenges that hinder productivity and sustainability. Dr. Ferdinand Tornyie, a Research Fellow at the United Nations University Institute for Natural Resources in Africa, sheds light on a transformative initiative aimed at revolutionising agricultural practices through clean energy-powered technologies. The “Innovate for Clean Agricultural Technologies” (INFoCAT) project seeks to eliminate drudgery in agricultural value chains and empower women, who are often the backbone of rural economies.
Agriculture in Sub-Saharan Africa is labour-intensive and time-consuming. Harvesting and processing crops such as peanuts (groundnuts) require extensive manual labour. Farmers, particularly women, spend countless hours on these activities, often involving their children and diverting them from education. Dr. Tornyie highlights a specific example where women spend up to five hours plucking peanut pods—a task that could be completed in just ten minutes with appropriate machinery. This inefficiency not only hampers productivity but also affects the quality of life and economic prospects of these communities.
The INFoCAT project aims to introduce clean agricultural machinery designed to reduce the physical labour involved in such tasks. By doing so, it not only boosts the productivity and incomes of smallholder rural farmers but also ensures that children can stay in school, contributing to the long-term socio-economic development of the region.
A core component of the project is the integration of clean energy sources. The global agenda on energy transition underscores the importance of moving away from fossil fuels and biomass burning, which are prevalent in rural farming communities. These traditional energy sources are hazardous to health and contribute to environmental degradation. For example, using firewood for food processing exposes women to harmful smoke and pollutants, while collecting firewood depletes forests and consumes valuable time.
By adopting clean energy solutions like solar power, the project aims to create a sustainable and healthy environment for farmers. Solar-powered machinery not only reduces the health risks associated with traditional practices but also offers a cost-effective and long-term solution for energy needs in agriculture. This shift is crucial for maintaining environmental integrity and ensuring the health and well-being of rural populations.
The “Innovate for Clean Agricultural Technologies” project employs a holistic approach that involves all stakeholders from the outset. Policymakers, green entrepreneurs, women’s groups, and experts collaborate to design and implement these technologies. This inclusive methodology ensures that the technologies developed are tailored to the specific needs and challenges faced by the communities.
Smallholder farmers and agro-processors, who are the primary users of these technologies, actively participate in the co-design process. Their input is invaluable in creating solutions that are practical and effective in reducing labour-intensive tasks. By involving policymakers from the beginning, the project ensures that the technologies developed are aligned with national development goals and policies, facilitating smoother adoption and scaling.
One of the significant aims of the project is to generate evidence that can influence policy and drive broader adoption of clean agricultural technologies. Demonstrating the benefits of these technologies from both an economic and environmental perspective is crucial. By showing how clean energy solutions can enhance productivity, improve health outcomes, and contribute to environmental sustainability, the project aims to create a compelling case for policymakers.
This evidence-based approach not only facilitates the adoption of these technologies at a local level but also informs national policies on energy and agriculture. By showcasing successful implementations, the project hopes to inspire similar initiatives across the region, driving a widespread transition towards clean energy in agriculture.
The project’s success is made possible through the support of the International Development Research Centre (IDRC). Their sponsorship and commitment to funding innovative solutions in food, agriculture, and energy are instrumental in bringing these ideas to fruition. The backing from IDRC not only facilitates the development and implementation of clean agricultural technologies but also supports efforts to scale these innovations, ensuring they reach more communities across Sub-Saharan Africa.
The “Innovate for Clean Agricultural Technologies” (INFoCAT) project represents a significant step towards transforming agriculture in Sub-Saharan Africa. By addressing the drudgery in agricultural practices, integrating clean energy solutions, and fostering inclusive development, the project aims to create sustainable livelihoods and empower women in rural communities. As the project progresses, it holds the promise of not only improving agricultural productivity but also contributing to the broader goals of environmental sustainability and socio-economic development in the region.
The research project titled “A Just Energy Transition: Localisation, Decent Work, SMMEs, and Sustainable Livelihoods” is a vital part of the broader Clean Energy for Development Research Initiative. This ongoing project in Ghana, Kenya, and South Africa, aims to ensure that the transition to renewable energy is equitable and beneficial for all, especially workers, women, local communities and small and medium-sized enterprises (SMMEs).
Our project is based on the understanding that a just transition must deliver structural transformation and localisation. Put simply this means increasing the participation of local people in the manufacturing aspects of the sector, ensuring the transfer of knowledge and skills, and involving them in the energy production network. The goal is to maximise the benefits of renewable energy for the local people so that they not monopolised, especially by global, often foreign companies.
A just transition also includes the creation of decent work opportunities. Decent work is characterised by fair wages, job security, and the protection of workers’ rights. Additionally, gender equality is a crucial aspect, focusing on increased participation of women and ensuring their fair treatment in the energy sector. Sustainable livelihoods are another key element, ensuring that decent jobs enable workers to support their families and improve their quality of life.
Kenya, Ghana, and South Africa have promising renewable energy sectors. However, the heavy reliance on imported components and technologies undermines this potential, as most of the wealth and profits generated from this sector find their way in the global north, while localizing the costs of production, including pollution and waste. This unequal and unfair economic relationship, rooted in colonialism, perpetuates Africa’s underdevelopment and limits the localization of benefits from renewable energy projects. Our project aims to redress these enduring and new inequalities by advancing the localisation of renewable energy component production and creating job opportunities within these countries.
By localising the production of renewable energy components, such as solar panels, wind turbines, and gearboxes, we can create jobs for local manufacturers and generate economic growth. This will ensure that the financial benefits of renewable energy projects stay within the local economy, promoting further development. Empirical evidence shows that small-scale entrepreneurs can be powerful drivers of economic growth. Our project encourages local entrepreneurs to participate in the renewable energy value chain, boosting cash flow and economic development at the local level.
Historically, many sectors, including energy, have marginalized women. In many African societies, women are often denied both education and employment opportunities. The accepted role for women is that of a subservient homemaker limited to the domestic domain. Her role in the labour market is limited to reproducing future labour (childbirth) and daily reproduction of the existing male labour (her husband). Most societies adhere to gender stereotyping and condemn any deviation from this status quo, particularly when it involves women. Although women’s marginalization remains deeply rooted in most African societies, women frequently play a critical role in supporting their families, especially during economic downturns. This is especially important in the current context characterised by widespread retrenchments, declining employment opportunities, low pay, insecure, and informal work for the lucky few who can get a job. Still, women face significant barriers to participation in the renewable energy sector. Our project seeks to challenge these inequalities and empower women with the knowledge, skills, and opportunities to participate in and benefit from the renewable energy economy as workers and entrepreneurs. This is critical for ensuring gender equality and enhancing the resilience and sustainability of local economies. Both at the household and workplace level, women bring valuable perspectives and skills to the energy sector, and their involvement is crucial for the success of a just energy transition.
Africa has great potential to localise the RE global production network in ways that generate enough power to offset existing deficits across the continent and to develop a renewable manufacturing energy industry to help resolve the continent’s pressing challenges such as unemployment and poverty. Its existing regional integration provides a ready market for the development of the RE manufacturing industry to potentially reduce the overdependence on imports. It also provides opportunities for beneficiation of its abundant mineral resources often exported in raw form and localisation opportunities. However, Africa faces many challenges: poor transmission and distribution infrastructure; lack of finance; the dominance of foreign firms which undermine localisation; differing priorities which hamper a unified push for a just transition; lack of an established market to support the RE manufacturing and the widespread corruption and mismanagement. In addition, there is potential resistance from various stakeholders, including the state and labour groups who benefit from existing economic arrangements, workers, and communities if they are not convinced of the benefits of the transition. For instance, the shift from coal to renewable energy in South Africa involves significant changes in the energy mix, including potential job losses in the coal industry, and failure to generate enough energy to meet the demand which already far outstrips supply. A push towards a just transition should therefore address these risks.
Our initiative incorporates stakeholders from the start to identify risks and minimise them while highlighting the importance of the transition in protecting our planet. This is crucial for Africa. Africa suffers the worst climate change effects despite contributing less than 3% to global emissions as of 2022. Recent floods, droughts, wildfires, and high temperatures in various nations demonstrate this. The project will engage labour unions, civil society, and government leaders to produce and exchange knowledge and build transition consensus. We will analyse the value chain to determine which sectors can create the most decent jobs. We also analyse climate change and energy justice in their larger context, highlighting their connection.
The renewable energy sector offers many opportunities to address existing inequalities and promote sustainable development. While the transition presents risks, such as job losses and precarious employment, it also holds the potential to create a more equitable and sustainable energy economy. Our project is focused on ensuring that the benefits of renewable energy are shared widely, particularly with local communities and vulnerable populations.
By promoting localisation, decent work, and the involvement of SMMEs, we aim to create a just energy transition that supports sustainable livelihoods and economic growth. Our research and evidence-based approach will inform policy and investment decisions, ensuring that the transition to renewable energy is both inclusive and transformative. Through this project, we hope to build a resilient and equitable future for all.
Middle East and North Africa (MENA) countries have the lowest level of women’s labour force participation in the world, as well as some of the highest levels of youth unemployment. The Economic Research Forum (ERF), a regional network promoting high-quality economic research to develop Arab countries, is conducting research in Egypt, Jordan, Lebanon, Morocco, Sudan, and Tunisia to understand how Micro Small and Medium Enterprises (MSMEs) will adapt to the transition to clean energy and the phasing out of energy subsidies in the region. The project, which runs from 2022 to 2025, examines how the clean energy transition might generate quality livelihood opportunities for women and youth.
Significant progress has been made on this project in the past two years. An initial analysis of gender equality in 6 countries revealed various data gaps and emphasized the importance of both quantitative and qualitative data in understanding the challenges of adopting clean energy and its impact on women and youth. The report highlighted the lack of gender- and age-specific data on clean energy MSMEs, underscoring the need for gender-disaggregated data to explore their transition to clean energy. Data is crucial for policy prioritization. In response, the ERF is using a mixed research method that combines surveys of MSMEs with interviews and focus groups to understand key issues and challenges.
Women make up 32% of the formal clean energy workforce globally, but only 7–9% in MENA. Within the clean energy sector, women are overrepresented in human resources and administrative services but underrepresented in STEM (science, technology, engineering, math) and renewable energy operations, management, and leadership.
ERF researchers conducted a survey of 1000 MSMEs in Morocco, Egypt, and Jordan, examining the challenges and drivers of clean energy adoption. The results showed that only a small percentage of Egyptian enterprises use clean energy, while Jordan and Morocco had adoption rates of 5% and 4%, respectively. However, 21% of Egyptian enterprises and 37% of Jordanian and Moroccan firms were considering transitioning to sustainable energy.
The study revealed that factors such as firm size, age of owners and management, and education level influenced the adoption of renewable energy. Interestingly, the gender of the business owner and the percentage of female employees did not independently impact clean energy adoption. This underscores the importance of promoting gender equity beyond economic considerations and recognizing the intersectionality of gender with other factors.
However, research from the Peterson Institute for International Economics, which surveyed over 22,000 organizations worldwide, found that gender diversity can lead to improved economic success. Organizations with 30% women executives have been shown to achieve a net profit margin that is 6% higher than their industry peers. Gender balance not only benefits women but also enhances working conditions, well-being, organizational culture, and productivity for everyone involved.
ERF’s research on women’s involvement in clean energy entrepreneurship in MENA matches global trends. According to the International Energy Agency, only 11% of renewable energy start-up founders are women, compared to 20% in other industries (excluding consumer products). Like their counterparts in other sectors, women in clean energy entrepreneurship face challenges in raising investment capital and lack access to specific skills and training. A 2019 global survey by the International Renewable Energy Agency (IRENA) found that 56% of respondents from Europe, North America, Asia, and Africa identified financing as a significant obstacle for women in clean energy entrepreneurship, while 71% highlighted skills and training. In the MENA region, awareness of financial schemes is low, and banks are often reluctant to provide loans to businesses owned by women and youth.
Entrepreneurship is especially important in the MENA context, where job scarcity is identified as the major reason for starting a business. The MENA region has some of the highest levels of youth unemployment in the world, combined with the lowest rate of women’s labour force participation at 21%. Social norms, prejudices, and misperceptions (for example, that in times of high unemployment, men should be given jobs first and women should be let go first) interact to compound the challenges women face in seeking employment.
Addressing the persistent inequalities in women’s access to capital and financing requires tackling root causes, including wage inequity and women’s marginalization in land and property ownership. There are three principal means of acquiring land and property everywhere in the world: inheritance, purchase in the market, and state distribution. Enforcing wage equity and granting women equal and independent land and property rights can reduce these inequities. However, the urgency of the climate crisis and the slow pace of wage and land reform necessitate additional measures to improve women’s capital access. This may entail providing access to finance without the standard requirements of collateral, to which women and youth have much weaker access. Private climate finance channelled as guarantees can reduce risks for women- and youth-run businesses, especially in places with limited access to finance and little credit servicing history.
Women and girls in the MENA region excel in education compared to men and boys, often demonstrating a greater inclination towards pursuing STEM and Technical and Vocational education. According to UNESCO, several countries in the MENA region have a proportion of women STEM graduates above 50%. UNESCO also reports that the percentage of female graduates in STEM fields in Morocco rose from 39% to 49% between 2010-11 and 2020-21. There are big generational differences in women’s accomplishments in technical fields in the MENA region. For example, Tunisian women between the ages of 20 and 24 possess ICT skills four times more advanced than those of older women. Despite obstacles such as discrepancies in rural areas, girls routinely surpass boys in academic achievement at every level of education. Therefore, it is crucial to shift the focus from simply recruiting women into STEM fields to ensuring that they obtain appropriate employment opportunities aligned with their degrees.
Although government, corporate, and non-profit initiatives have increased women’s employment and entrepreneurship in the MENA clean energy sector, gender gaps persist. Women face “sticky floors” and “glass ceilings” in their careers due to cultural conventions, social biases, and structural constraints such as the gendered division of labour within families and higher societal value awarded to paid work over unpaid caregiving. ERF research highlights women’s prospects and challenges in renewable energy, offering policy recommendations to level the playing field.
IRENA predicts there will be 38 million clean energy jobs by 2030 and 43 million by 2050 under a 1.5°C global trajectory. Most of these jobs will be associated with solar, wind, biomass, small-scale hydropower, green hydrogen, and geothermal energy. Clean energy skills are presently in short supply worldwide, including in MENA. The global transition to sustainable energy presents a unique and opportune moment to create decent livelihoods for women and youth in the MENA region.
ANDE is launching a new initiative to investigate the significant challenges that women face in clean energy entrepreneurship, through applied research. They will fund actionable research that aims to build the evidence base on the barriers that women face in clean energy entrepreneurship, with a regional focus on Latin America, the Caribbean and Sub-Saharan Africa.
The Aspen Network of Development Entrepreneurs (ANDE), with support from the International Development Research Centre (IDRC), will fund six research projects on women in the clean energy sector. Lead organisations or individuals must be based in Latin America, the Caribbean, or Sub-Saharan Africa, and the research project should propose to conduct research in these regions.
Only proposals from individuals, teams and/or organisations based in Sub-Saharan Africa, Latin America or the Caribbean will be considered.
ANDE is one of 12 projects working with the Clean Energy for Development initiative. Their project seeks to reduce barriers and improve pathways to growth for women-led enterprises in clean energy, with a particular focus on gender-smart capital mobilisation towards locally relevant clean energy solutions.
Visit the ANDE website for more details and information about this call for proposals.