The Kenya Private Sector Alliance (KEPSA) has signed a Memorandum of Understanding (MoU) with green energy company Fortescue Future Industries (FFI) to help facilitate its members participation in new large scale green energy projects in Kenya.
FFI, a wholly owned subsidiary of Australian iron ore company Fortescue Metals Group Limited (Fortescue), is in the process of assessing a proposed integrated large scale green hydrogen and green ammonia production facility, utilising renewable energy in Kenya.
“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 youth and small and medium-sized enterprises and the potential to alleviate poverty in the local communities we operate in”, stated FFI Chief Executive Officer Julie Shuttleworth.
The two parties will 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 decarbonisation, Capital FM reports.
Carole Kariuki, KEPSA CEO, noted the Alliance has been at the forefront in championing sustainable and inclusive business practices and efforts towards addressing climate change mitigation and adaptation. These efforts, she said, are coordinated through the Environment, Water and Natural Resources Sector Board at KEPSA which works closely with the government.
“KEPSA has been instrumental in championing the development of business-friendly policies and regulatory frameworks for addressing climate change and sustainability.
This includes the development of the Climate Change Act in 2016, the National Climate Change Action Plans (NCCAP) 2018 – 2022 and ongoing development of Climate Change Regulations that seek to provide incentives for businesses implementing climate change initiatives,” said Kariuki.
Through KEPSA, FFI will engage with private sector players in seeking and taking advantage of supply chain and downstream green industrialisation opportunities through green industry advocacy and collaboration with public sector stakeholders to support rapid project mobilisation.
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 annum with a base of 2020 in the hope of helping Kenya achieve its ambition to decrease emissions by 32% by 2030.
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 and early warning and emergency response systems.
Others are a 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 stakeholders also committed to developing products and services that are climate sensitive to encourage the path toward strengthening climate resilience between local, regional and international private sector.
KEPSA Co-Chairs the Partnering for Green Growth and Global Goals (P4G) National Platform with Kenya’s National Treasury and has catalysed 14 partnerships, both start up and scale up, to provide market-based solutions for combating climate change and realising sustainable development goals in Kenya.
The partnerships are currently providing sustainability and climate-oriented solutions in agriculture, water, energy, industry and the circular economy.