The Kenya Private Sector Alliance (KEPSA) has signed a Memorandum of Understanding (MoU) with Fortescue Future Industries (FFI), an Australian company that will facilitate its members’ participation in new, large-scale green energy projects in Kenya.
FFI, a subsidiary of Fortescue Metals Group Limited, is in the process of assessing a proposed integrated large scale green hydrogen and green ammonia production facility, utilizing renewable energy in the country.
In a press release sent to newsrooms, KEPSA Chief Executive Officer (CEO) Carole Kariuki noted that KEPSA has been at the forefront in championing sustainable and inclusive business practices and efforts towards addressing climate change mitigation and adaptation.
“These efforts are coordinated through the Environment, Water, and Natural Resources Sector Board at KEPSA and which works closely with the government,” she said.
The CEO maintained that KEPSA has been instrumental in championing the development of business-friendly policies and regulatory frameworks for addressing climate change and sustainability which include the development of the Climate Change Act in 2016, the National Climate Change Action Plans (NCCAP) 2018 – 2022, and the ongoing development of Climate Change Regulations that seek to provide incentives for businesses implementing climate change initiatives.
“Through KEPSA, FFI will engage with private sector players in seeking and taking advantage of supply chain and downstream green industrialization opportunities through green industry advocacy and collaboration with public sector stakeholders to support rapid project mobilization,” she disclosed.
FFI CEO Julie Shuttleworth stated that the two parties would now collaborate on the assessment of mutual opportunities in relation to the project objectives and commitment to sustainable business practices, with a shared vision to be enablers of global de-carbonization.
She reiterated that FFI is rapidly advancing and investing in a wide range of green energy initiatives, including the development of large-scale green energy projects worldwide.
“We are committed to supporting economic growth, employment creation, empowerment of the youth and small and medium-sized enterprises, and the potential to alleviate poverty in the local communities we operate in,” she added.
The announcement comes just days after the signing of a 10-point Corporate Commitment charter to climate change and sustainability in Kenya by representatives from the private sector including KEPSA, Kenya Climate Innovation Center (KCIC), Kenya Association of Manufacturers (KAM), and development partners, among other stakeholders.
Some of the highlights in the charter include the commitment to reduction of greenhouse gas emissions by at least 5 per cent per annum with a base of 2020 in the hope of helping Kenya achieve its ambition to abate 32 per cent by 2030.
According to the statement, the signatories agreed to integrate climate change mitigation and adaptation actions into business models, strategic business plans, and value chains as well as enhancing adaptation investments in operations and value chains such as reduction of water consumption, increase in water use efficiency and wastewater management, early warning, and emergency response systems.
“Others are commitment to raising awareness and building capacity of the private sector to map out their greenhouse gas emissions hotspots while mainstreaming emission reduction strategies and training modules to build technical capacities for combating climate change in business,” the statement read.
The stakeholders are also committed to developing products and services that are climate sensitive to encourage the path towards strengthening climate resilience between local, regional, and international private sectors.
KEPSA Co-Chairs the Partnering for Green Growth and Global Goals (P4G) National Platform with the National Treasury has catalyzed 14 partnerships both start up and scale up to provide market-based solutions for combating climate change and realizing sustainable development goals in Kenya.
Currently, the partnerships are providing sustainability and climate-oriented solutions in agriculture, water, energy, industry, and the circular economy sectors.
By Michael Omondi