ARTICLE
9 November 2023

Paving The Way Forward: Legal Mechanisms To Promote A Successful GH2 Economy In Namibia

E
ENS

Contributor

ENS is an independent law firm with over 200 years of experience. The firm has over 600 practitioners in 14 offices on the continent, in Ghana, Mauritius, Namibia, Rwanda, South Africa, Tanzania and Uganda.
On 28 September 2023, ENS | Namibia (incorporated as Lorentz Angula Inc.) and Rand Merchant Bank (RMB) hosted their second joint event as part of the Green Hydrogen Series...
Namibia Environment

On 28 September 2023, ENS | Namibia (incorporated as Lorentz Angula Inc.) and Rand Merchant Bank (RMB) hosted their second joint event as part of the Green Hydrogen Series, which was inaugurated in January 2023.

The panel comprised an all-female lineup, including, the Moderator, Ms. Reem El Sherif (RMB), and the panellists, Ms. Magano Katoole (Ministry of Justice legislative drafter), Ms. Stefanie Busch (ENS) and Ms. Elizabeth Ipangelwa (policy advisor). The discussion centred around legal gaps in Namibia's current energy regime and the legislative tools that could be deployed in order to pave the way towards pioneering a formidable green hydrogen economy in Namibia.

A key question raised by the panel was whether current laws are suitable for optimum renewable energy generation. Ms. Katoole indicated that the answer was mixed, and involved both 'yes and no'. She mentioned that there are currently no dedicated laws for green hydrogen from production to exportation. Additionally, while the Environmental Management Act, 2007 is a workable piece of legislation, it is not wholly ideal for the green hydrogen industry for offtake purposes. There is also a need for the swift promulgation of the draft Synthetic Fuels Act.

Following this, Ms. Stefanie Busch delved into the gaps in Namibia's energy (and related) laws and the need to address the so-called lacunas in the law. She pointed out that the Water Act, 1956 did not make provision for the issuance of desalination permits; however, with the advent of the Water Resources Management Act, 2013, which came into force in August 2023, the issuance of desalination permits was now covered under Namibian law. Furthermore, there is also a need to introduce an appropriate safety regime to regulate the production, storage, transport and use of hydrogen and its derivatives (such as ammonia), as well as introduce strategic environmental impact assessments along with the accreditation of environmental assessment practitioners in Namibia's environmental legislation.

Ms. Elizabeth Ipangwela proceeded to discuss the role of development finance institutions ("DFIs") in the quest for a green revolution, along with achievement of decarbonisation goals. To this end, DFI's seek to partner with and support the Namibian Government and introduce international best practices to complement the local skills pool. She also explored the plight of certification and standards in Namibia, which will be of vital importance in spurring Namibia's green hydrogen economy.

Finally, Ms. Stefanie Busch probed the measures needed for promoting a green hydrogen hub in Namibia. These include carving a clear roadmap for the green hydrogen derivatives strategy, and increasing investor support, specifically, streamlining permitting processes. Green hydrogen should also be recognised as an essential industrialisation priority within the SADC region, whereby nations within the region should seek to leverage off of each other's strengths and promote a regionally integrated approach to green hydrogen production, use and export.

Interested in knowing more? Read our previous article for a recap of this series' first event.

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