KUALA LUMPUR (Sept 13): There is a concern that the realisation of the net zero carbon emissions by 2050 could be delayed, according to Energy Industries Council (EIC) regional director Azman Nasir.
Citing the EIC's Survive and Thrive Report 2023, released last month, he said supply chain companies have shifted their focus back to oil and gas, primarily due to challenges related to the availability of consistent renewable energy (RE) work and also due to challenges in the profitability of RE projects.
Azman also said that based on financial investment data, oil and gas projects are far more likely to proceed with full funding, compared to renewables and transitional technologies such as wind and hydrogen projects.
“These findings raise the prospect of rapidly widening disparities between green ambitions and the reality of what businesses actually see in their order books. Ultimately, these findings raise concerns that net zero 2050 commitments are likely to be delayed,” he said at the opening ceremony of the Oil and Gas Asia 2023 (OGA 2023) & EIC APAC Energy Conversations on Wednesday.
Hence, sharing insights with energy industry experts is necessary to find more realistic and effective solutions for decarbonising the oil and gas industry toward net zero goals, he said.
“Although turbulent times lie ahead for the future of energy, there is certainly a high degree of willingness and enthusiasm for the energy transition among key industry players. It is worth noting that out of crisis comes a great opportunity — the opportunity to build and reimagine a more resilient and sustainable global energy system.
“Asia is already recognised as having huge potentials to become a hub for energy transition initiatives and low carbon investments. Let’s capitalise on that point and not be swayed by narratives that are not suitable for this region,” Azman added.
* Note: This story has been amended for accuracy.