Guidance

Growth Gateway: Mozambique Just Energy Transition implementation and investment plan (summary)

Published 13 October 2025

Mozambique has outlined an ambitious Just Energy Transition (JET) plan to transform its energy system by 2050. Despite contributing only 0.01% to historical global CO₂ emissions, the country is among the most climate-vulnerable.

The JET strategy focuses on 3 core transitions:

  • building a modern energy system based on renewables
  • achieving universal access to modern energy
  • adopting clean transport solutions

The plan seeks to replace reliance on biomass and fossil fuels with hydro, solar, and wind power, supporting low-carbon industrialisation and improved livelihoods.

Compared to a business-as-usual (BAU) scenario, the JET pathway offers significant benefits:

  • 70% to 80% reduction in greenhouse gas emissions
  • universal energy access by 2030 (5 to 10 years earlier than BAU)
  • 30% to 50% lower energy costs for households
  • 15% to 30% increase in household income through productive energy use

The strategy also anticipates a 10% rise in energy export revenues, driven by expanded hydropower capacity and regional integration. Fossil fuel use will be phased down, with coal eliminated and gas use limited to existing and planned projects.

To realise this vision, Mozambique estimates it will require over £63 billion in investment by 2050, with £24 billion to £36 billion needed before 2030. Significant investments include hydropower, grid expansion, solar and wind infrastructure, off-grid solutions, and clean transport systems.

The plan also incorporates social equity, climate resilience, and skills development to ensure a fair and inclusive transition. With international support, Mozambique aims to become a regional leader in clean energy while advancing its development goals.