RIYADH: Concerns about energy security and the need to accelerate decarbonization appear to be growing with 2023 on the way, as geopolitical issues that surfaced last year show no signs of abating.
Amidst the ongoing energy crisis catalysed by these tensions, countries are realizing the need to adopt renewable energy as dependence on traditional energy imports may be affected due to various factors including internal affairs of energy exporting countries.
Even though energy transformation is very necessary to guarantee a better future, a sudden shift to renewable energy is expected to do more harm than good, especially considering the fact that the energy crisis has been plaguing the world̵7;s poorest countries for many years. bothering with.
“The IEA estimates that around 75 million people who have recently gained access to electricity are likely to lose the ability to pay for it, meaning that for the first time since we started tracking this, worldwide The total number of people without electricity in the U.S. has started to increase,” Abdullah Al-Abri, a consultant at the International Energy Agency, told Arab News.
He added: “To address the issue of energy crisis in the poorest countries, the global community needs to invest more in sustainable energy solutions and provide competitive capital and expertise.”
The Vitality of a Gradual Energy Transition
Experts believe that a gradual energy transition, where both renewable and conventional sources operate together, could be the solution to smooth the journey towards sustainability.
Ian Harfield, Managing Director of Engie Energy Solutions, Gulf Cooperation Council, said, “There will be a transition period when investment in both fossil fuels and renewables must continue concurrently, without losing sight of the fact that renewables are the future of global energy ” Arab News.
There will be a transition period when investment in both fossil fuels and renewables must continue concurrently, without losing sight of the fact that renewables are the future of global energy.
Ian Harfield, Managing Director of Engie Energy Solutions, Gulf Cooperation Council
He added: “To fortify energy systems against extreme weather, we need to diversify the renewable energy mix, incorporating hydropower, solar, wind and green hydrogen and large-scale storage systems.”
Manish Laligam, managing director for the Middle East region at Protivitas member firm, shares similar views and says: “To meet pledges under the Paris climate agreement, developing countries where energy consumption is growing faster than the rest of the world is growing, considering a combination of gas and renewable energy sources.
Earlier in March, Francesco La Camera, director general of the International Renewable Energy Agency, told Arab News that divestment from fossil fuels should be a gradual process.
“We have to understand that the old system, which is centralized and based on fossil fuels, cannot stop in a day,” La Camera told Katie Jensen, host of the Arab news program “Frankly Speaking.”
“There will be a slow decline in oil and gas. And to maintain the smooth decline in oil and gas, we need some investment in oil and gas again. If not, there will be disruption.
Al-Abri said that developing climate-resilient fossil fuels is essential to ensure a smooth energy transition.
Al-Abri said, “The question is not about fossil fuels versus new energy – the matter is more how to develop fossil fuels that are climate-friendly and at the same time ensure that growing demand and the climate agenda are met.” To do this, new energy should also be developed.
Meanwhile, experts believe that ongoing geopolitical tensions, including the Ukraine conflict, are expected to accelerate the energy transition journey.
COP28 will help shine a light on the region’s ambitious decarbonisation targets. (AP)
“Geopolitical tensions have only underscored the critical need for renewable energy – green energy sources are more resilient to global disruptions. International efforts are needed to set benchmarks, share insights and promote industry best practices,” Harfield said.
In January, during the World Economic Forum, Fatih Birol, executive director of the International Energy Agency, warned that the world was going through an unprecedented energy crisis.
“Our world has never seen an energy crisis of such depth and complexity. The biggest driver of renewable energy growth today is energy security,” Birol said.
COP28 holds vital importance
In the midst of all these sustainability efforts and the ongoing energy transition, the United Nations Climate Change Conference, also known as COP28, is scheduled to be held in Dubai from 30 November to 12 December this year.
The upcoming conference is expected to be of significant importance in the energy transition journey as countries in the Middle East and North Africa region – led by Saudi Arabia – are playing a key role in greening the Earth with their net-zero goals.
“COP28 will help shine a light on the region’s ambitious decarbonisation targets, which are most aligned with national socioeconomic considerations,” Harfield said.
Laligam said COP28 will accelerate the region’s plans to achieve a cleaner economy powered by renewable energy sources, technology development and climate-smart solutions.
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Amidst the ongoing energy crisis catalysed by these tensions, countries are realizing the need to adopt renewable energy as dependence on traditional energy imports may be affected due to various factors including internal affairs of energy exporting countries.
“Several Middle Eastern countries have developed hydrogen leadership roadmaps to establish their countries as top hydrogen suppliers by promoting low-carbon sectors. Over the past two years, several solar, wind and battery storage projects have been launched in the Middle East. have been done,” Laligam said.
In March, Issam Abu Sulaiman, regional director of the Gulf Cooperation Council at the World Bank, said that COP28 would provide an opportunity to embark on an economic path of green growth that could ultimately diversify the economy while having a positive impact on the climate.
Abu Suleiman further added that the conference is expected to provide an opportunity to drive green technology and carbon sequestration investments, which are critical for the world to achieve net-zero emissions by 2050.
This year’s COP also hopes to include oil and gas companies in the discussions, as without their contribution, achieving a sustainable future will be difficult.
During a recent exclusive interview with Arab News, Fahd Alajlan, President of the King Abdullah Petroleum Studies and Research Center, also reiterated this view and said that an inclusive approach is needed to facilitate the energy transition journey.
“In the past, oil and gas companies have been left out of discussions. If we look at emissions today, more than 50 percent comes from the energy sector. Therefore, it is very important that we include oil and gas companies in this discussion. Do it, so that instead of demonizing and ostracizing them, be part of the solution.”
Al-Abari said that COP28 will play an important role not only in the MENA region, but throughout the world.
“For the sector, I think COP28 can shine a light on how producer economies are working to address the climate agenda through the inclusion of energy transition, de-emissionisation practices and innovation and solution integration COP28 could also be important to the world as I think there will be a greater emphasis on the hydrogen and new energy agenda and an opportunity for cross-learning on how to set up low-emission industrial clusters.
As the largest oil-producing country in the Middle East continues to lead the energy transition globally, the world will witness more monumental milestones in the journey that will ensure that the future is greener.