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COP28 President-Designate says oil and gas sector needs to up the game on climate action

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“The oil and gas sectors are integral to find solutions for the climate change challenge. In fact, they must take responsibility and lead the way,” said Dr. Sultan Al Jaber #whyafrica #whypowerafrica #whyexploreafrica #oilandgas #energy #africanenergy

COP28 President-Designate says oil and gas sector needs to up the game on climate action

Dr. Sultan Al Jaber, COP28 UAE President-Designate has emphasised the integral role that the oil and gas industry plays in solving the climate challenge during his keynote remarks at S&P Global’s CERAWeek in Houston, Texas. 

Speaking at the plenary on the first day, Al Jaber said that energy leaders have the knowledge, experience, expertise, and the resources needed to address the dual challenge of driving sustainable progress while holding back emissions.

“Let me call on you today to decarbonise quicker, future-proof sooner and create the energy system of the future, today.

“Alongside all industries, the oil and gas sector need to up its game, do more and do it faster,” Al Jaber added.

Al Jaber summed up the complexity of the challenge emphasising that by 2030, there will be an extra half a billion people living on the planet, demanding more energy every year.

At the same time, the world needs to cut emissions by 7% each year (that’s 43% in less than seven years). “This is a global challenge that calls for global solutions from every stakeholder acting in unity and solidarity,” said Al Jaber.

“This year, the world will evaluate exactly where we are when it comes to climate progress through the first Global Stocktake. And we know we are way off track. We need a major course correction.”

Failure is not an option (COP28 President-Designate says oil and gas sector needs to up the game on climate action)  

“To echo the two most famous phrases of this city, first we need to recognise ‘Houston…we have a problem’ and then we need to agree that ‘failure is not an option,” he added.

Al Jaber recognised that there is a need for unity and solidarity in tackling the energy trilemma. “Every government, industry, business, and individual have a role to play. No one can be on the sidelines. The oil and gas industry is integral to developing the solutions. In fact, this industry must take responsibility and lead the way,” he said.

The oil and gas sector needs to rapidly decarbonise its operations and help decarbonise the operations of its customers.

“Only half of the industry has declared a scope 1 and 2 net-zero goal by 2050. Everyone in the industry needs to be aligned around the same goal. And we should stretch ourselves to go further. Let’s aim to achieve net-zero even earlier. Let’s also scale up best practices to reach net-zero methane emissions by 2030. Let’s electrify operations, equip facilities with carbon capture and storage, and use all available technologies to increase efficiency. And let’s monitor, measure, and validate progress every step of the way.”

“Making a dent in the climate crisis is not just about decarbonising oil and gas operations. With the right incentives, the right technologies, the right mindset and the right partnership model, the oil and gas industry has the capacity and the resources to help everyone address scope 3,” Al Jaber continued.

“Power generation is the sector where the biggest impact can be made in the shortest amount of time. By 2030, renewable energy capacity needs to triple.”

Future proof through diversifying (COP28 President-Designate says oil and gas sector needs to up the game on climate action

“This is the decade to diversify portfolios, future proof companies and provide the clean energy the world needs. That said, we know that for high-emitting sectors, renewable energy is not enough. Aluminum, steel, cement, and many other heavy industries, make up 30% of global emissions.”

He added: “Decarbonising economies at scale requires an enabling ecosystem that connects policy, people, technology, and capital.”

“Policymakers must create the incentives that move the market in the right direction. Industry needs clear policies to guide long-term investment decisions. The right regulations will stimulate breakthrough technologies to unlock battery storage, bring down the cost of carbon capture, and develop and commercialise the hydrogen value chain. And people need to be empowered to work together, break out of their silos, and unify around a common cause.”

Al Jaber noted the financing gap between the world’s climate ambitions and what will be required to meet the world’s climate goals.

“The entire financial community needs to play a bigger role. In 2022, the world invested USD1.4-trillion in the energy transition. According to the IEA, we need over three times that amount. Capital must come from all sources: governments, the private sector, institutional investors, private equity, industry, and international financial institutions.”

He emphasised that when it comes to financing the energy transition, “we must ensure that no one is left behind.”

“Only 15% of clean tech investment reaches developing economies in the Global South, and that is where 80% of the population live.

That’s why we need to think seriously about fundamental reform of IFIs and the multilateral banks to unlock concessional finance, lower risk and attract greater private investment.”

Key priorities for energy sector (COP28 President-Designate says oil and gas sector needs to up the game on climate action

Al Jaber outlined several key priorities for the energy sector:

“As a nascent technology, entrepreneurship, partnership, and collaboration will be key to building out the entire hydrogen value chain. And we in the UAE are ready to partner with all those who want to join us to make it happen.”

“Our quickest win will come from energy efficiency. Let’s work with customers to improve energy efficiency, while increasing access to zero carbon energies. And let’s stay laser focused on our objective of rolling back emissions.”

Noting the historic opportunity presented by the global energy transition, Al Jaber said: “transforming the world’s energy systems represents the greatest opportunity for human and economic development since the first industrial revolution.”

Dr. Al Jaber concluded his remarks by inviting all parties across government, the private sector and civil society to “cooperate, collaborate, share ideas and talk to us.”

He said: “Let me extend an open invitation to all parties across government, the private sector and civil society. And let’s remember that progress is made through partnership not polarisation. Let’s unite a divided world with a COP of solidarity, a COP of action and a COP for all. All of us need to be pulling in the same direction. Because there is more energy in unity than division. We must have the will. We certainly have what it takes to make the difference. This is our moonshot. Failure is not an option.”

COP28 President-Designate says oil and gas sector needs to up the game on climate action

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COP28 President-Designate says oil and gas sector needs to up the game on climate action

 

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