The Zambian government is urging financial institutions to support forest communities with climate finance, especially for solar energy projects, to prevent deforestation. However, a troubling paradox has emerged: the very technology meant to help is inadvertently accelerating the problem.
Impact and Action Plan for Zambia Deforestation with Solar Finance
At the COP30 in Belo Horizonte, Brazil, Zambia highlighted the devastating impact of climate change on its forests, which cover over 60% of the country. These ecosystems are the lifeblood of rural communities, providing essential resources like food, fuel, medicine, and clean water. Yet, they are under severe threat from deforestation and forest degradation.
President Hakainde Hichilema of Zambia stressed the need for collective action, urging financial institutions to provide climate finance for solar energy projects. The goal is to offer a clean alternative to wood and charcoal. However, recent research reveals a critical flaw in this approach. While over a million small solar devices have been sold in Zambia, a study found that more than 85% of rural households finance these purchases by selling charcoal, timber, and other forest products. This creates a vicious cycle where the adoption of clean energy is directly funded by deforestation.
To counter this, Zambia has developed multifaceted strategies. The government is promoting the Zambia solar initiative, which aims to expand energy access. Alongside this, initiatives to increase the adoption of improved cooking stoves are underway to reduce the demand for firewood. The government is also promoting sustainable forest management practices, including reforestation and afforestation, to restore degraded ecosystems and enhance carbon sequestration.
Role of Financial Institutions
Financial institutions have a critical role to play in breaking this cycle. Simply funding large-scale projects is not enough; the focus must shift to creating accessible and sustainable financing models for the end-users in forest communities. By providing targeted climate finance, they can help these communities transition to sustainable energy without having to sacrifice their forests for income.
The Zambian government is working to create an enabling environment for private sector investment in renewable energy. We are already seeing significant Zambia solar investment from partners like the African Development Bank (AfDB). For instance, the AfDB funded a 25MW solar plant to boost the nation’s energy goals, and private-public partnerships are driving major developments like the 100 MWp Ngwenya Solar Project.
While large projects like a 16 MW plant powering the Copperbelt are vital, the next step is micro-level support. This includes developing micro-credit programs, subsidies, and flexible payment plans tailored to rural income cycles. In addition, capacity-building programs are essential to equip communities with the skills for sustainable livelihoods, reducing their direct reliance on forest resources.
Global Collaboration
Zambia’s participation in COP30 highlights the urgent need for global collaboration. The country is calling on the international community to provide not just financial assistance, but also support in technology transfer and the development of innovative financing mechanisms. The challenge in Zambia is a microcosm of a broader issue across the developing world: how to ensure that the green energy transition is just and does not create unintended negative consequences for the most vulnerable populations.
By leveraging targeted climate finance and engaging with global partners, Zambia aims to protect its vital forests, enhance its resilience to climate change, and contribute to global climate goals. Through these concerted efforts, Zambia is working to secure a sustainable and resilient future for its forest communities, turning the tide on the solar-deforestation paradox.
To learn more about the intricacies of solar technology and its potential, explore our free e-course on the solar industry.