Policies On Energy Transition Should Reflect Economic Realities Of Oil Producing Countries—Kyari

The Group Managing Director/Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mele Kyari, has advocated the need for policies on energy transition to reflect economic realities of oil producing and consuming countries.

Kyari who said this in an opinion article titled, “Perspective on energy transition,” made available to THE WHISTLER argued that while the call to end the use of fossil fuels in order to reduce global carbon emissions and achieve carbon neutrality by 2050 is becoming louder, greater synergy is required to achieve sustainable outcomes.

The GMD said that achieving sustainable outcomes for energy transitioning would require the global oil industry to lower the global carbon footprint, sustain global energy security, and drive prosperity especially in developing countries where population growth remains well above global average.

As a national oil company, he said the NNPC believes that inclusive policy actions that guarantee access to finance and low-carbon technology are key to sustaining global energy security and equitable growth as the world transits to a carbon-neutral economy.

He said, “Climate change has increasingly become a major concern for everyone. Outdoor temperatures and sea levels are rising, water bodies are drying up, and the frequency of major weather events is increasing.

“This worrisome impact of global warming has, over the years, triggered the best of human innovation, especially in the fields of energy and sustainability.

“World leaders, leading institutions, scientific communities, businesses, and organizations are leading global solidarity in action against climate change and its impact on life on earth.

“The call to end the use of fossil fuels in order to reduce global CO2 emissions and achieve carbon neutrality by 2050 is becoming louder, and the coalition is big, but greater synergy is required to achieve sustainable outcomes.

“This requires the global oil industry to play more than one important role; to lower the global carbon footprint, sustain global energy security, and drive prosperity especially in developing countries where population growth remains well above global average.

“In most known instances, the oil industry has remained one of the major contributors to global economic growth, by guaranteeing energy flow to industrialized regions and revenue and taxes to oil-producing countries like Nigeria.

“These dual roles cannot be simply ignored in our quest to address the impact of carbon emissions on the environment.

“Policies and views on the energy transition should therefore reflect global energy and economic realities surrounding both oil-producing and consuming nations.

“As a national oil company, we believe inclusive policy actions that guarantee access to finance and low-carbon technology are key to sustaining global energy security and equitable growth as the world transits to a carbon-neutral economy.”

The GMD said the NNPC’s strategy for achieving carbon neutrality is centered around three principles.

The principles are adoption of low-carbon technology across our operations, deepening natural gas utilization to reduce energy poverty, and investment in clean energy technology and products.

“We believe these principles are most likely to support a smoother transition to a carbon-neutral economy without compromising access to the cheap and readily available energy resources that will be required to address energy poverty and support country-specific development priorities.

“Slowing down investment in hydrocarbon ventures may provide the right incentive for the energy transition, but it cannot guarantee global energy security in the near future, especially as energy demands grow faster than renewable energy maturation,” he added.