Aramco President & CEO Amin H. Nasser has called for a new energy transition plan that considers the needs of all countries, specifically those in Asia and the broader Global South.
In a keynote speech at the Singapore International Energy Week, Mr Nasser said a “Transition Plan 2.0” was necessary to account for the Asian continent’s crucial role on the global stage, its resources and its future outlook.
On the need for a Transition Plan 2.0, Mr Nasser said: “This may be Asia’s century. But Asia’s voice and priorities, like those of the broader Global South, are hard to see in current transition planning, and the whole world is feeling the consequences. Transition progress is far slower, far less equitable, and far more complicated than many expected… Our main focus should be on the levers available now.”
On the importance of pragmatic transition planning, Mr Nasser said: “This ideology-free approach simply prioritizes systematic emissions reduction where the impact is greater, at an acceptable cost, within reasonable timeframes, and whatever the source or technology. It is what I call a multi-source, multi-speed, and multi-dimensional approach that addresses the actual security, affordability, and sustainability priorities of all countries, not just a few. A Transition Plan 2.0, with Asia at its heart.”
On the challenge of energy transition costs, Mr Nasser said: “Transition will be expensive for everyone, with estimates of between $100 and $200 trillion required globally by 2050. For developing countries, almost $6 trillion may be required each year. Moreover, in a transition that requires staggering amounts of front-end capital investment, the cost of capital is more than twice as high in developing countries where the need is greater.”