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Glasgow and made impactful statements . Most significantly , it stated that no new oil and gas exploration is required and that all the oil and gas needed for the future has already been discovered and is already mostly in production . Something else occurred in Glasgow in 2021 . The Glasgow Financial Alliance for Net Zero ( GFANZ ) was established . GFANZ brought together the major financial institutions with a critical objective of members joining the “ Race to Net Zero ”. The recommended pathway to achieve this was not to finance fossil fuel developments , which are sanctioned post-Dec 31 , 2021 .
The IPCC statement on the future requirement for oil and gas and the influence of the Glasgow Financial Alliance for Net Zero have combined to discourage investment in new oil and gas projects . Media coverage on the negative impact of fossil fuel usage has also resulted in only a small number of our young talent entering this industry . Prominent universities have also reduced the number of courses available in the fossil fuel sector primarily because of a lack of demand .
In summary , a lack of present-day investment and young human capital entering the oil and gas industry today will not threaten energy security in 2050 . Instead , it will be energy scarcity that will likely be of significant concern . Thus , there could be a scenario that we could all get to net zero , but it would be because of a lack of supply and not because of a fall in demand . As previously mentioned , energy scarcity for a sustained period inevitably leads to poverty and other social issues .
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A REALISTIC PATHWAY TO NET ZERO FOR ASIA-PACIFIC
When all the data is analysed , the question for the Asia-Pacific is : “ Is net zero realistic ?”
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I believe pursuing a net zero agenda is risky if pursued aggressively . But if given an adequate amount of time , it is possible to achieve this high aspiration .
Achieving net zero will take a great deal of capital . Achieving it in an accelerated fashion will take even more . Speed generally enhances risk levels and cost , and it is essential to realise that the most optimal clean energy delivery mechanism has likely yet to have been conceived by a scientist or engineer today . Asia must use this energy transition phase to reduce Greenhouse Gas ( GHG ) emissions , but it must also concurrently adopt a wait-and-see approach to determine what suits Asia . Asian countries should not be alarmed by this “ tsunami of necessity ” advancing at us to do something that may not optimally work for Asia . Instead , we need to have our transparent narrative , lest Asia is accused of greenwashing .
We should also pursue our research
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Figure 7 : Evolution of the global energy mix since 1800 |
Achieving net zero will take a great deal of capital . Achieving it in an accelerated fashion will take even more . Speed generally enhances risk levels and cost , and it is essential to realise that the most optimal clean energy delivery mechanism has likely yet to have been conceived by a scientist or engineer today .”
and development , seeking solutions that work for us . Asia must ensure that we can afford what we are implementing and not become precariously and financially leveraged , fixing a planet predominantly damaged by those more advanced than us .
Overall , a smart energy transition , based on just principles , is required for Asia , not something that is rushed and expensive . Asia ’ s energy transition strategy should not present future generations with a world burdened by debt and difficulties created by good intentions but also the result of actions that lacked long-term thought . Instead , our response to the climate change agenda should be measured and designed to give our children and grandchildren a better holistic life . – @ ESG
Dr Kenneth Pereira is managing director of Hibiscus Petroleum Berhad
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