Stepping up decarbonization action

We are rapidly approaching the end of a very hot summer, which saw the planet’s hottest ever recorded July. Now we must look ahead to the last few months of 2023 and although the weather may be cooling, the threat of global warming is not. This is why we must make the most of a string of upcoming energy-related events happening in the Middle East region, that have potential to impact the global energy transition drastically and positively.

We are now at the “now or never” stage when it comes to combatting climate change. Every ton of CO2 emissions we can reduce, every degree of warming we can limit, will matter to communities, economies, lives. Opportunities to decarbonize need to be seized, urgently.

In 2022, global emissions reached a record high of 36.8 billion tons of CO2. And while global energy demand is expected to surge by approximately 25% by 2030, we are still faced with the sobering fact that around 775 million people still lack access to the most basic means of electricity.

We need to invest in solutions that both increase electricity capacity and access, but that also decarbonize the energy landscape.

Grid as a foundation

The electricity sector emits around 13 billion tons of CO2 each year with coal dominating the electricity mix at around 60% worldwide. A positive development is that almost 30% of global electricity today comes from renewable sources. And looking ahead, renewables, led by solar and wind, are forecast to dominate global capacity additions, accounting for 75-80% of all new capacity out to 2050.

Although this will have a positive impact on carbon emissions, this development increases the burden on grids for reliability, stability, and affordability, requiring efficient and environmentally friendly products and systems. We need to invest heavily and modernize grid infrastructure, to ensure a resilient energy system, capable of handling the demands of the low carbon energy future we’re working towards. 

Developing and preparing grids will be crucial in decarbonization as we work to electrify processes in other sectors. The energy, industrial, transport, and construction sectors still have a significant role to play in furthering CO2 reductions.

Pragmatic solutions

The unfortunate truth is that there is no single, simple, and immediate solution for the energy transition, and there is no quick fix. Each country, each industry, each company, organization, and individual, is on its own decarbonization journey. Each at a different stage and moving at a different pace.

We must be pragmatic, technology agnostic, and embrace decarbonization in all forms, whether it is a small step or a giant leap.

45% of all emissions savings in 2050 will come from technologies that have yet to reach the market. The Middle East has immense potential, not only as a clean energy supplier, but as a cradle of green technology development, innovation, and an incubator of pioneering new partnerships.

Together with our customers and partners, we will meet the challenges through constant, steady progress. The path is not straight and sometimes we will take steps in different directions, depending on the circumstances. But step by step, small and large, we will take them together.

The road to COP28

I am looking forward to engaging with our peers, customers, and partners over the coming weeks and months, at the various gatherings, culminating in COP28 at the end of the year.

We cannot reach net zero overnight and we must create an inclusive setting, drawing on the expertise, knowledge, and resources of the energy sector, to drive positive change.  We cannot let perfection be the enemy of progress.

COP is and should be inclusionary. This means that as well as providing a stage for activists, governments, and scientists, it must also provide space for the energy sector. In any discussion on decarbonization, the energy sector is vital. The biggest emitters are where we will make the biggest savings. We need to transform the energy sector and we can only do this in partnership.

In the run up to COP28, events like ADIPEC and WETEX will be instrumental in gathering industry leaders from the energy and utilities sectors to align, exchange information, and accelerate action in support of the political agendas defined by COP28. Together we are the part of the solution.

I look forward to meeting you there, soon.