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Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, said policies aimed at prematurely divesting from hydrocarbons without sufficient viable alternatives would be self-defeating.
They will undermine energy security, erode economic stability and reduce the revenue available to invest in the energy transition, said Dr. Al Jaber, managing director and group chief executive of Abu Dhabi National Oil Company (Adnoc) and special envoy to the UAE. A WAM report says climate change.
While global investment in renewable energy exceeded $365 billion last year, total investment in energy storage, carbon capture and hydrogen value chains was only $12 billion. That’s not enough, Dr. Al Jaber wrote in his article for Project Syndicate, an international media organization that publishes and syndicates commentary and analysis on a variety of global topics.
$250 trillion in investment required
It is estimated that the energy transition will require more than $250 trillion in investment over the next 30 years. Clearly, no country, let alone a company, can afford the bill.
But financing isn’t the only problem. Energy conversion takes time. While wind and solar account for the vast majority of all new generation capacity added in 2021, they still account for only 4% of today’s energy mix.
Still, the record growth in renewables, which accounted for more than 80 percent of all new generation capacity added last year, is by far the clearest sign yet that the energy transition is picking up pace.
But recent events have shown that unplugging the current energy system until we can build a strong enough alternative puts economic and climate progress at risk — and calls into question whether we can ensure a just transition that is fair to all.
A successful energy transition
A successful energy transition must be based on joint economic and climate progress. It must be grounded in scientific, economic, and engineering facts, recognize multiple dilemmas and challenging trade-offs, and accelerate the deployment of practical solutions.
“To do this, we need an inclusive approach that draws on the experiences of all sectors of society and, crucially, does not exclude the energy sector.”
The world is already facing a severe energy supply crunch as the economy begins to recover from the Covid-19 pandemic. The Russian-Ukrainian conflict has tightened tight markets, forcing countries to reassess their urgent near-term strategic energy needs.
What we need is a new strategy that is practical, pro-growth and pro-climate. The strategy needs to recognize that the complexity of energy and industrial systems and the scale of the transformation required is enormous, requiring greater coordination and collaboration on everything from capital allocation to product design, public policy and behavioral change.
Check demand side
This means checking the demand side of the energy system first. Wind and solar are making great strides, but most of the energy is used in heavy industry, manufacturing, construction, transportation and agriculture. These harder-to-mitigate sectors have the greatest climate impact and therefore require more investment, starting now.
As the world’s energy demand grows, maintaining global energy security will require oil and gas to remain an important part of the energy mix for decades to come.
“This is why we must do more now to reduce the climate impact of oil and gas. Producers, governments and the private sector must work together to ensure that each new unit of output is less carbon-intensive than the last. “This will require supporting fiscal policy through tax incentives, improved operational efficiency through technology, greater commitment to reducing methane and flaring, and significant investment in carbon capture technologies.”
UAE practice
These realities are guiding the UAE’s approach to energy transition, which includes continuing to meet today’s global needs while investing in new energy systems for the future. The UAE has three of the largest single-site solar power plants in the world, has invested in renewable energy projects in more than 40 developed and developing countries, and plans to increase its renewable energy portfolio to 100 GW by 2030.
“We have also invested in nuclear power and are laying the foundations of the hydrogen value chain, which is key to achieving net-zero emissions.”
While the UAE remains a reliable supplier of some of the world’s least carbon-intensive oil and gas, we will reduce its intensity by another 25% by the end of this decade.
“And, as the first country in the Middle East and North Africa to announce a Net Zero 2050 Strategic Initiative, we are decarbonizing our economy sector by sector. We have established the region’s first industrial-scale carbon capture scheme, and we All electricity consumed by NOCs now comes from zero-carbon nuclear and solar.”
Practical Solutions
“As this year’s UN Climate Change Conference (COP27) approaches, and the UAE prepares to host COP28 in 2023, we need to focus on practical solutions to help address the three imperatives of ensuring accessible, affordable and sustainable energy supplies. A difficult dilemma. If the COP process is to deliver on the promises of the Paris Agreement, we need an inclusive dialogue on a realistic energy transition framework.
“This dialogue should bring everyone to the negotiating table, from government and civil society to scientists and the private sector. It must include professionals from across the energy sector, because otherwise it is impossible to do so without hindering economic progress. Rational discussion on the practicality of energy transitions to reduce emissions.
“But let’s not wait to start this conversation. If we are to deliver on the promises of the Paris Agreement, we need to deliver results for the climate and the economy now. Our ultimate goal should be to curb emissions, not progress,” he added. . arab trade news agency
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