Global energy crisis is a ‘management’ issue, says Crescent Enterprises CEO Badr Jaffer
Davos: As the world grapples with its most severe energy crisis since World War II because of the war between Russia and Ukraine, Badr Jafar, chief executive officer of UAE-based Crescent Enterprises, told Arab News that he believes It’s really “more” a management crisis.
“The reality is that when you refer to this as an energy crisis, you give the impression that it is some kind of problem with an actual energy source. The problem, of course, is the need for favorable policies to ensure that What is lacking is that the energy (essential) reaches the markets,” Jaffer said, speaking on the sidelines of the annual meeting of the World Economic Forum in Davos. “And this, basically, to provide energy security to large parts of the world, related to years of underinvestment in important sources of energy.”
The headlines speak for themselves. UK residents have seen adverts suggesting coal furnaces replace electric or gas heating in their homes as a way to cut costs, while Europeans are warned to prepare for harsh winters ahead Is.
“That’s why I refer to this as a management crisis—not to be cheesy, but because we need to learn,” he said. “Policy makers need to learn to solve these problems with long-term friendly policies, not short-term politics. (If you try) to address these challenges with short-term politics, this is going to be the result.
Every year in Davos, curated panels sound the alarm on global warming, climate change and the need to reduce the world’s dependence on oil. But little has actually changed. Ironically, new research commissioned by Greenpeace found that private jet emissions quadrupled during last year’s conference. Of the 1,040 private jets that landed, 53 percent were making trips of less than 750 km that could easily be done by train or car, with the shortest flight only 21 km.
US Special Presidential Envoy for Climate (right) speaks at the WEF meeting this week during a session titled Philanthropy: A Catalyst for Protecting Our Planet. (WEF/ Valeriano Di Domenico)
The attendees – and the wider world – were dismissed by UN Secretary-General Antonio Guterres in his speech on Wednesday. “We are toying with climate disaster,” he said. “Every week brings a new climate horror story. Today, fossil-fuel producers and their allies are still racing to expand production, knowing full well that their business model is incompatible with human existence.
Jaffer agrees, but he doesn’t see it as just a climate issue, but one that is intertwined with the environment.
“It is a climate-nature nexus that the world definitely needs to come to terms with. Supporting and enabling the green development of our energy systems is imperative,” he said. “There must be a concerted effort by business, policy makers and civil society, not only at a regional level, but at a global (there) level.”
More needs to be done across the board, despite countries around the world pledging to ratify Climate Acts, cut emissions and find better, cleaner sources of energy.
“I think that development and climate are two sides of the same coin. And the side of that coin, if you will, is policy adaptation to make sure that we’re pursuing low emissions, but not low growth. Jaffer said.
With the United Nations climate change conference, COP27, in Egypt in November, and COP28 to be hosted by the United Arab Emirates later this year, many see now as the ideal time to set the stage for 2035 for the region to become one Let’s see in form. leader and pioneer,” as Marouand Kairouz, WEF’s head of the Middle East and North Africa, put it in an earlier interview.
“The UAE is doing this by building renewable energy. It has already commissioned and invested in at least 20 gigawatts, I believe, of renewable energy and aims to increase this to 100 gigawatts by 2030,” Jaffer said.
Indeed, the UAE Net Zero Strategic Initiative by 2050 was announced in 2021, making the emirate the first country in the Middle East and North Africa to commit to the goal of net-zero emissions.
Badr Jaffer, CEO of Crescent Enterprises at the WEF Annual Meeting 2023 in Davos-Klosters on January 17, 2023. (WEF / Valeriano Di Domenico)
Jafar cited global philanthropy and faith-based charity as other integral forms of investment that have not been expanded to their full potential.
“Climate philanthropy is growing rapidly. It has tripled in the last five years, and it could grow significantly in the years to come,” he said.
“We need to create awareness and we need to build coalitions. COP28 will do just that – with family offices and other creative capital actors to really unite to advance our net-zero, nature-positive goals Will help build a coalition of philanthropists who work.
Jaffer claims that emerging markets are on course to make a big difference in the coming years.
“There is a huge institutionalization of philanthropy in these markets,” he said, “the second is massive intergenerational wealth transfers; in Asia alone, about $5 trillion (will pass) from one generation to the next.”
“And the third is a greater appreciation of the interconnectedness of the climate crisis with other systems such as health, food security, national security, and, of course, social justice.”
Jaffer believes such developments would mean the world would see “a sea change and a sea change in philanthropic engagement, but also climate philanthropy.”
