Photo of four women walking alongside a solar power system.

    Partner for the global energy transition Development needs sustainable energy

    Energy is an important engine for economic development. It is indispensable for reducing poverty and achieving economic progress. In many poorer countries, households and businesses still have yet to gain access to a public energy grid. More energy therefore needs to be made available. It is important that doing this does not lead to increased levels of greenhouse gas emissions at the expense of the climate, however. That is why one aim of development policy is to support an energy transition that guarantees a clean, safe and just energy supply.

    With SDG 7, the United Nations has set itself the goal of ensuring access to affordable, reliable, sustainable and modern energy for all by 2030. The Federal Ministry for Economic Cooperation and Development (BMZ) set out its own concept for the global energy transition in its “Vision 100”.

    Germany is assisting its partners in their efforts to cover 100 per cent of their energy demand using sustainable, safe and affordable forms of energy. This will facilitate both economic and social progress. Also included is a full transition to emissions-free energy systems so that, despite increasing energy production, no additional emissions of greenhouse gases are released into the atmosphere.

    In order to do this, Germany is engaged in the following strategically important areas:

    • renewable energies, grid expansion and energy efficiency,
    • phasing out fossil fuels,
    • green hydrogen and
    • access to energy.

    Developing countries receive financial support in the form of grants and loans (Financial Cooperation). They are also advised on planning and legislation (Technical Cooperation). The BMZ aligns its efforts in this regard with the strategies, aims, challenges and prerequisites of its partner countries. During government negotiations, both sides agree on an agenda of work to be carried out jointly. By using this approach, Germany is able through its development policy to contribute towards creating the political framework for the energy transition in its partner countries, and towards realising concrete investments in their energy infrastructure.

    It is also important to note that an energy transition cannot succeed without collaboration with the private sector. Partner countries benefit from the know-how and investments of German and European companies. At the same time, the German private sector is able to tap into viable future markets. Germany is currently working with around 40 countries in the field of energy.

    Logo: Partners in Transformation | Business & Development Network

    Partners in Transformation

    In order that people today and future generations can have a decent life in an intact environment, the German Development Ministry is successfully engaged in cooperation with numerous businesses and other economic players.

    A man stands in front of a solar power plant in Namibia, which consists of numerous panels.

    Making rapid headway on the global energy transition

    In order to slow down global warming, the switch from fossil fuels to renewable energies needs to happen faster. A just global energy transition will create the basis for this – and will, at the same time, open up new opportunities for climate action and for German companies.

    International partners – working together for a sustainable future

    Germany’s activities are embedded in alliances with international partners in the EU (Team Europe, Global Gateway Initiative), and with other multilateral players like the African Union (AU), the World Bank, regional development banks like AfDB and national development banks like BNDES in Brazil. By working in joint initiatives, we are able to achieve even greater impact from these activities. Mission 300, a partnership between the World Bank Group and AfDB launched in 2024, shows how this works. Its goal is to give around 300 million people in sub-Saharan Africa access to reliable and affordable energy by 2030. Germany is one of the most important supporters and strategic partners of this initiative.

    The BMZ also cooperates with the International Renewable Energy Agency (IRENA), the International Solar Alliance, the policy network REN21 and the Africa-EU Green Energy Initiative (AEGEI). These organisations and initiatives analyse the sector, make proposals for shaping the energy transition and specifically support the build-out of renewable energies.

    In all of the initiatives, the aim is to make the energy transition socially just. Disadvantages affecting certain groups or poorer sections of society are to be avoided or at least mitigated. This aim is directly addressed in Just Energy Transition Partnerships (JETPs) with, for example, South Africa, Indonesia, Viet Nam and Senegal. These partnerships get additional funding for the purpose of shaping a just energy transition. This means that people who are especially affected by the phase-out of fossil fuels, for example, have prospects for the future.

    Global and regional initiatives and funds supported by the BMZ:

    A man wearing a helmet is standing in front of a large wall of mirrors

    Multi-donor platform GET.pro Multi-donor platform GET.pro

    The global energy transition is an enormous endeavour because CO2 emissions must be drastically reduced while, at the same time, the growing demand for energy in developing countries and emerging economies also needs to be met. To do that requires targeted and coordinated international cooperation.

    Photo of solar panels in a field.

    Multi-donor partnership EnDev Multi-donor partnership EnDev

    There are 666 million people around the world living without electricity and 2.1 billion people worldwide who do their cooking using technologies that are harmful to the environment and to their health. The implications of this for the climate, for health and education, and for income opportunities are dramatic.

    Photo of solar power plants in the desert.

    Energy Transition Funds Energy Transition Funds

    The demand for investment in energy projects worldwide is enormous and, because of the huge need to catch up, it is particularly high in developing and emerging economies. According to the UN Climate Secretariat, these investments need to increase trifold by the early 2030s to at least 2.2 billion dollars a year compared to the current level of investment.

    Areas of German development cooperation work – this is where Germany is active

    The BMZ is targeting the long-term transition of the energy sector away from fossil fuels via projects in five strategic areas:

    Wind turbines

    Renewable energy and grid expansion

    Power from solar and wind power plants is the best and cheapest solution for electricity generation in most partner countries. Other forms of renewable energy can also make a contribution to a safe and clean energy supply depending on the local conditions. The countries along the East African Rift, for example, have immense potential in terms of geothermal power. The build-out of renewable energy, suitable electricity grids and power storage in partner countries needs to be accelerated in order to triple capacities by 2030.

    Close-up of an electricity meter showing a reading of 7,454.3 kilowatt-hours

    Energy efficiency

    The most environmentally friendly energy is energy that is never consumed. Saved energy does not need to be generated or distributed. Whilst the build-out of renewable energies is making progress, there is still a lot of catching up to do when it comes to energy efficiency. Which also means that there is a lot to do in order to achieve the internationally agreed goal of doubling energy efficiency by 2030, as laid down in SDG 7. The potential for making progress is especially high in developing countries, but has so far hardly been realised. That is why it especially pays to start there.

    Illustrative image: Production of green hydrogen. In the foreground are solar panels; behind them are containers for storing hydrogen; in the background are wind turbines with rotating rotors.

    Phasing out fossil fuels

    The move away from fossil sources of energy is closely linked to the build-out of renewable energies. However, high levels of investment in power stations, for example, which is still a lucrative prospect in purely economic terms, can mean that they then remain in operation for a long time (what is known as “lock-in”). This is especially problematic for developing countries as their public budgets are already short of funds. That is why it is necessary to support the phase-out in part via economic incentives. One possibility is to use power stations in other ways.

    The word “Hydrogen” is written on a silver box

    Green hydrogen

    Direct use of renewable energy and of electricity is not possible in all industrial sectors – for example, in the chemical industry, for manufacturing steel, or in aviation and maritime shipping. In these cases, green hydrogen and energy sources based on green hydrogen (known as Power-to-X products) are what is needed. Because of the very high costs involved in producing this kind of energy, there are many places where using this technology is not yet economically viable. In the long term, however, the importance of green hydrogen for the energy transition is set to grow.

    A photo of two people sitting at a table and writing by the light of a lamp.

    Access to energy

    Access to electricity and clean energy for cooking are still not universally available for everyone in the world. In order for all people to have such access, action is needed simultaneously at various levels: infrastructure for the production of renewable energies, appropriate legislation and new funding models. Our involvement in the energy sector also has a ripple effect on other development goals. It supports gender equality, for example, when women are involved in the planning of energy infrastructure or when they are able to work more productively thanks to electricity access. The energy transition gives the economy a boost and the economic growth to which it contributes can secure additional income for countries, as can energy exports.

    Cooperation in action – selected projects

    Kenia
    Still image from a Deutsche Welle video about training programs for refrigeration technicians in Kenya

    Green cooling

    In Kenya, which is a tropical country, cooling is becoming increasingly important in food production, trade and industry, and in the health sector. In 2020, the cooling industry in Kenya generated greenhouse gas emissions with an climate impact equivalent to 4.1 million tonnes of carbon dioxide. This figure shows that energy-efficient cooling devices with climate-friendly cooling agents offer huge potential to prevent climate-damaging emissions – not least in view of global warming causing a growing demand for cooling.