Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Special Envoy for Climate Change in the UAE, stressed that the transition in the energy sector needs a realistic, ambitious, practical and economically feasible plan in order to succeed in achieving progress in both climate action, energy security and economic growth simultaneously.
This came in a keynote speech he delivered during his participation in the Bloomberg Emerging Markets Forum, which was held on the sidelines of the United Nations General Assembly 2022, in which a number of government officials, leaders of the energy sector, companies and businesses and experts from around the world participated.
He added: “Failure to meet the basic energy needs of societies is slowing both economic growth and climate action. If we reduce investment in the current energy system before a future energy system is ready, it will negatively affect energy security, economic prosperity and progress in climate action.”
He said, “The global oil reserve capacity is less than one and a half million barrels. This is less than 2% of global consumption. In a world where markets are subject to further turmoil, this does not give us much room to maneuver, and such a course would lead to disaster, when we need to move forward.”
He continued: “The three main challenges facing the transition in the energy sector are promoting global economic growth while maintaining the level of emissions reduction, ensuring energy security and making progress on climate action simultaneously, and leaving no one behind. I am absolutely confident that we can tackle these challenges together, especially since we have no alternative options.”
He added, “Before looking for solutions, we must realize that the current energy system is huge, complex and multifaceted. Therefore, the transition to a new energy system requires careful, effective and practical planning, and the participation and cooperation of all on a large scale. In short, we need a realistic strategy in order to keep the level of global temperature rise not to exceed 1.5 degrees Celsius, and to ensure access to energy at an appropriate cost.”
He welcomed the statistics indicating that solar and wind energy accounted for more than 80% of the total amount of new energy added last year, which reflects the rapid transition in the energy sector to renewable energy sources. He explained that the sectors that consume the largest amount of energy are still highly dependent on traditional sources.
He pointed out that this “emphasizes the need to invest more in emissions-reducing technologies and zero-carbon energy sources that can help the heavy industry, manufacturing, construction, transportation and agriculture sectors achieve a successful transition in the energy sector.”
He said, “It is clear that there is a significant lack of funding to achieve these goals, and it is important here to focus on the numbers. Total global investment in renewables last year exceeded $365 billion, but less than 5 percent of that amount was invested in energy storage, carbon capture, and hydrogen value chain technologies, and that’s not enough. According to specialized estimates, the energy transition process is expected to require more than $200 trillion over the next 30 years, i.e. more than $6 trillion annually. It is clear that no country or company alone can afford this huge amount.”
He explained that the expansion of renewable energy sources must be carried out in parallel with reducing the emissions of energy sources that the world currently depends on, pointing out that oil and gas are still necessary to meet global energy needs, given that renewable energy sources constitute only 4% of the global energy mix.
He pointed out that the UAE is a key player in the global energy sector, and is fully committed to achieving a transition in the energy sector. As a leading country in the region in the renewable energy sector, it has invested $50 billion over the past two decades in more than 70 countries, and plans to invest an additional $50 billion in the coming years. The UAE is also home to three of the world’s largest solar power plants, as well as the permanent headquarters of the International Renewable Energy Agency (IRENA). Meanwhile, the UAE is leading the decarbonization efforts in the oil and gas sector, investing heavily in carbon capture, use and storage, as well as developing and exploring other innovative technologies. Countries around the world are facing increasing challenges to ensure energy security, and mounting pressures to deal with the repercussions of climate change. Given the UAE’s extensive experience in the traditional and renewable energy sectors and its leadership in the field of climate action, the country is well positioned to contribute effectively to laying the foundations for the transition in the global energy sector during the COP28 Conference of Parties, which it will host in Dubai Expo next year.
He added, “The success of the transition in the energy sector depends on the adoption of the latest technologies that reduce emissions from the energy sources currently used.” WAM
