Net zero carbon emissions by 2050 likely to be delayed: EIC

KUALA LUMPUR – The Energy Industries Council (EIC) has voiced concerns that the realisation of the Net Zero Carbon Emissions by 2050 is likely to be delayed.

Citing the EIC Survive and Thrive Report 2023, regional director Azman Nasir said the report found that supply chain companies have shifted their focus back to oil and gas (O&G), mainly due to challenges related to the availability of consistent work in renewables and challenges in profitability in renewable energy (RE) projects. 

“The same report also revealed that based on Financial Investment Decision data, O&G projects are far more likely to proceed with full funding, compared to renewable and transition technologies such as wind and hydrogen projects," he said.

Azman said this in his speech at the opening of the Oil and Gas Asia 2023 and EIC Asia Pacific Energy Conversations here today. 

The EIC Survive and Thrive Report 2023, which was published in August, is based on insights from nearly 100 energy supply chain leaders globally. 

Azman noted that these findings raised 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," said Azman. 

He emphasised that the narrative of a binary choice between fossil fuels and RE, which became prevalent in the few years following the Paris Agreement, is now seen as unrealistic.

Azman also highlighted that energy transition, in line with the Net Zero 2050 aspirations, poses a very formidable challenge to the industry, and more conversations and knowledge sharing are needed to address the challenges. 

Nonetheless, he noted that although turbulent times lie ahead in the future of energy, there is a high degree of willingness and enthusiasm for energy transition among key industry players. 

“It is worth noting that the energy crisis comes with a great opportunity to build and reimagine a more resilient and sustainable global energy system.

“Asia is already recognised as having huge potential to become a hub for energy transition initiatives and low-carbon investments, so let us capitalise on that point and not be swayed by narratives that are not suitable for this region," said Azman. –  Bernama, September 13, 2023

 EIC, net zero, Azman Nasir, oil and gas Asia, renewable energy, Paris Agreements.