Energy Executives Expect Net-Zero Emissions by 2060 or Later
A recent study conducted by Bain & Co. revealed that 62 percent of executives in the energy sector anticipate the world reaching net-zero emissions by 2060 or later. This sentiment is particularly strong among oil and gas industry leaders.
Financial Viability and Customer Demand Key Concerns for Energy Transition
Despite ongoing investments in decarbonization, energy executives are concerned about the financial viability of transition projects. Finding customers willing to pay higher prices remains a challenge, impacting the return on investment for these businesses.
According to the report, taxes, carbon pricing, and government subsidies are crucial factors influencing customer behavior in the energy transition landscape.
Middle East Executives Optimistic About Transition-Oriented Businesses
Executives in the Middle East, Asia-Pacific, and Latin America express optimism about the growth potential of transition-oriented businesses. They believe these ventures will positively impact company valuations and profits by 2030.
Paul Sullivan from the Atlantic Council notes that GCC countries have the resources to lead the energy transition journey, emphasizing the importance of economic diversification and leveraging oil and gas revenues.
Role of AI in Energy Transition
Advanced technologies like artificial intelligence (AI) are expected to play a significant role in achieving a sustainable future. The survey shows that a growing number of energy executives believe AI and digital processes will impact their businesses by 2030.
While AI applications hold promise in improving maintenance and production, concerns remain about the energy consumption associated with these technologies.
Funding Challenges in Energy Transition
Global energy transition progress faces funding challenges, with richer countries relying heavily on tax breaks and subsidies. Sullivan highlights the unsustainable nature of increasing public debt to finance transition efforts.
Despite the funding dilemma, Jamal emphasizes the urgency of achieving net-zero targets for future generations, calling for cooperation between developed and developing nations to address climate change effectively.