Namibia is set to receive close to N$9 billion (€500 million) from the European Investment Bank (EIB) to support the country’s renewable energy projects, including green hydrogen.
This comes as Namibia and the EIB are set to sign a joint declaration, which will allow the institution and Namibia to work towards the implementation of the concessionary loan by EIB Global to the government of Namibia, which will support long term, sustainable projects, and investments.
Moreover, the EU Commission President Ursula von der Leyen and Namibia’s President Hage Geingob on Tuesday signed a Memorandum of Understanding establishing a strategic partnership between the EU and Namibia on the margins of COP27 in Egypt.
The partnership aims to ensure the development of a secure and sustainable supply of raw materials, refined materials and renewable hydrogen to support the green and digital transformation of the partners’ economies.
The MoU will ensure the EU’s access to the country’s rare earth metals to power the global transition to green energy.
Namibia has significant reserves of rare earth minerals such as dysprosium and terbium needed for permanent magnets in the batteries of electric cars and wind turbines.
“It deepens the cooperation in areas with mutual benefits for both parties. The partnership will promote local value addition in Namibia by supporting the development of the mining and renewable hydrogen value chains. It will support sustainable raw materials value chains and facilitate investment and funding opportunities to modernise the Namibian industries and drive economic and social development.”
President of the EU Commission Ursula von der Leyen said: “I am so glad to sign this agreement between the EU and Namibia for the development of raw material value chains and renewable hydrogen. This is not only a huge step forward for the EU’s climate ambitions but also an agreement beneficial to Namibia, a front-runner in the development of renewable hydrogen in Africa. It shows Europe’s commitment to work with partner countries on our shared commitments to a greener and more resilient future in line with the Global Gateway Strategy.”
The partnership contains six main pillars: Integration, where feasible, of raw materials and renewable hydrogen value chains, including networking, new business models and promotion and facilitation of trade and investment linkages; cooperation to leverage Environmental, Social, and Governance (ESG) Criteria and align with international standards; mobilisation of funding for the development of soft and hard infrastructure required for projects development and for leveraging private sector funding through cooperation to address trade matters, including inclusiveness, and improving investments on climate action; capacity building, training and skills development along raw materials and renewable hydrogen value chains; cooperation on research and innovation along the raw materials value chain, including on mineral knowledge and circularity, hydrogen technologies and skills; and regulatory alignment, standards and certification.
The EU and Namibia have committed to develop an operational Roadmap for 2023-2024, with concrete joint actions agreed within six months of the signature of the Memorandum of Understanding. These actions are to be carried out in close cooperation with relevant industrial and financial stakeholders from the EU Member States and Namibia.
