Enhancing Angola's Commitment to Environmental Sustainability: Insights on Angola Sovereign Wealth Fund (FSDEA)’s Initiatives to Green Economy (in Celebration of Earth Day)
Luanda, 22 April 2024,
At the COP26 summit in Glasgow, Angola, under President João Lourenço's leadership, demonstrated its strong commitment to environmental sustainability and economic stability through significant policy announcements and strategic partnerships. President Lourenço outlined a transformative vision for the nation, focusing on a substantial shift towards renewable energy and environmental conservation. This approach is part of a broader strategy to cultivate a low-carbon development model for Angola. President Lourenço has set an ambitious target for Angola, aiming for 70% of the country’s energy mix to be derived from renewable sources by 2025. This goal is supported by enhancing the capacity of existing hydroelectric dams and fostering new renewable projects, particularly in solar power.
With more than 60% of the national energy matrix already consisting of non-polluting sources, Angola is making significant strides towards achieving this target. To align with the Paris Agreement objectives, Angola has endorsed the National Strategy for Climate Change for 2021-2035. This strategy is backed by a series of new environmental laws designed to strengthen Angola’s commitment to combating climate change. These laws are crucial for implementing systematic changes and promoting sustainable development practices across various sectors.
Beyond energy reforms, Angola is engaging in international partnerships to bolster conservation efforts. A key collaboration is with the International Conservation Caucus Foundation (ICCF), focusing on the conservation of Luengue-Luiana and Mavinga parks. These initiatives are part of Angola's broader efforts to protect wildlife and promote sustainable tourism, which are essential for the country's long-term environmental and economic health.
Angola's Commitment to Safeguarding the Blue Economy
Angola's National Maritime Strategy (ENMA-2030) and the Marine Spatial Planning Scheme (POEM), which embrace broader concepts of the blue economy, demonstrate the country's intent and outline the strategies with which the Republic of Angola aims to prioritize the blue economy as a key sector for diversification and economic development.
To support this vision, beyond state efforts, Angola has attracted foreign investment and international partnerships. This year, the Angolan Government and the European Union signed an agreement that includes financing totalling 30 million euros, aimed at promoting the conservation and sustainable management of marine resources and coastal ecosystems in the context of climate change.
Recent data from the Ministry of Fisheries suggests that investing in the blue economy could, in the medium to long term, increase the country's Gross Domestic Product (GDP) by 23 percent, employment by 18 percent, and reduce carbon dioxide (CO2) emissions by between 5 and 10 percent, according to estimates announced by the Minister of Fisheries and Marine Resources.
Angola's Sovereign Wealth Fund: A Beacon for Environmental and Clean Energy Initiatives
Angola's Sovereign Wealth Fund (FSDEA) is paving the way towards a sustainable future through its ambitious environmental initiatives and investments in clean energy. Contributing to Global Zero Carbon Targets Implement practices of responsibility and sustainability in the Fund's operations and its investment initiatives, to reduce the environmental impact of the institution. This focus encapsulates how our partners and business centers integrate sustainable practices into every aspect of their operations, from environmental management to social engagement and carbon footprint reduction, underlining their leadership in sustainable rare earth mining.
Regenerating the Earth with the Tree-planting Project
Angola's forests hold enormous potential, as the country ranks second in Africa for the largest forest area and thirteenth globally for the highest forest densities. Despite this, the forest resources are currently experiencing significant negative impacts from human activities, notably through the 31% deforestation observed in the Planalto Central forest polygons from 1984 to 2016 due to illegal logging.
Recognising the urgent need to transform this scenario and enhance research into our forest heritage for rational and harmonious management, the Sovereign Wealth Fund of Angola (FSDEA) is committed to responsibly developing this resource. This commitment aligns with our objectives of developing a profit-driven investment portfolio and assuming the role of guardian of the state’s reserves, for the benefit of both current and future generations.
FSDEA controls a total of 53,436.5 hectares of concession area through its subsidiary, Esplendor Florestal. Notably, 43,304.5 hectares of this area are currently barren due to deforestation and are earmarked for development to increase Angola’s forest coverage and support the protection of the green economy. Since the concession was granted in 2022, FSDEA has dedicated efforts towards forest regeneration and sustainability, reflecting a profound understanding of the essential interplay between economic growth and environmental stewardship.
In a significant stride towards combating deforestation and promoting biodiversity, FSDEA has launched an ambitious tree-planting project. By 2024, the project aims to plant 2 million eucalyptus trees across 2,000 hectares in the provinces of Huambo and Benguela. This initiative not only contributes to carbon sequestration but also enhances local biodiversity, providing habitats for various species and promoting ecological balance.
FSDEA recognises the strategic opportunity to revitalise the wood industry in Angola from economic, social, and environmental perspectives. Our strategy is founded on four key pillars: introducing sustainable forest management as a viable economic activity; establishing Angola as a benchmark country in the protection and development of forest plantations; developing downstream industries within the product value chain; and reducing the import of forestry products. This approach aims to foster a sustainable, profitable, and environmentally responsible forest sector.
Commitment to Zero-Carbon targets
Aligned with global efforts to combat climate change, Pensana's operations are designed to contribute significantly to zero-carbon targets. By producing the lowest embedded carbon rare earth product available and committing to net-zero emissions by 2040, Pensana not only adheres to international sustainability standards but also sets a precedent in the rare earth mining industry for environmental responsibility.
Good environmental practices and all precautions will be implemented to ensure that during operations and resettlement programs, all mechanisms are in place to achieve a low impact on the environment and the natural habitat and, where feasible, enhance. The project relies on the guidance and support of local government bodies for the identification and protection of vulnerable plant species and has a demonstration agriculture plots program for training purposes, and for habitat enhancement programs to ensure the continuity of the protected species.
Strategic Commitment to Sustainability
In its dedication to sustainability, FSDEA’s Strategic Plan for 2004-2028 integrates a deep commitment to sustainability and good practices. This vision underlines the fund's strategy to integrate environmental considerations into its core investment processes, reflecting a global shift towards sustainable finance.
Conclusion
FSDEA embodies a model of sustainable investment that not only meets the highest ESG standards but also actively contributes to the welfare of local communities, protects biodiversity, develops human resources, and supports global decarbonization efforts. By channeling investments into sustainable ventures, Angola is not only looking to foster long-term environmental benefits but also to ensure economic stability and growth that is resilient to environmental challenges. Angola's initiatives at COP26 and its strategic investments underline a robust commitment to environmental stewardship and renewable energy. By setting ambitious targets and backing them with strategic legislative measures, Angola is not only advancing its own sustainable development but also contributing to global environmental goals. The country's progress and future plans will be crucial in determining its role as a leader in sustainable development and clean energy in Africa.
By: FSDEA Communication and Marketing Office (22 April 2024)
Sources:
- FSDEA Strategic Plan 2024_2028
- COP26
- Pensana
- Voice of America
- Ministry of Fishery and Marine Resources
