Group Managing Director of the Nigerian National Petroleum Company (NNPC) Limited, Mallam Mele Kyari, has said that if the transition from the use of fossil fuels to renewable sources of energy must succeed, the discussions surrounding the subject must be based on reality, rather than sentiments.
Writing on the topic: “Perspective On Energy Transition,” for the “Atlantic Council”, on the Global Energy Agenda,” the NNPC helmsman noted that while slowing down investment in hydrocarbon ventures may provide the right incentive for the energy transition, it cannot guarantee global energy security in the near future
As a national all company, Kyari said the NNPC believes 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.
According to him, the NNPC’s strategy for achieving carbon neutrality is centred around three principles: namely the adoption of low-carbon technology across its operations, deepening natural gas utilisation to reduce energy poverty, and investment in clean energy technology and products.
Kyari posited that these principles are mostly to support 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.
“The world therefore needs to adopt a more inclusive consensus, one that considers complementarities and trade-offs between and within policies and policy objectives.
“As a commercially driven entity, we are leveraging the current industry dynamics to diversify and grow our portfolio in order to maintain relevance in the global energy market.
“Additionally, we are reassessing the brown and green assets for our carbon budget and environmental credentials as part of our transition to an energy company of global excellence,” he wrote.
Kyari stated that climate change has increasingly become a major concern for everyone, stressing that outdoor temperatures and sea levels were rising, water bodies drying up while the frequency of major weather events were increasing.
The worrisome impact of global warming has, over the years, triggered the best of human innovation, especially in the fields of energy and sustainability, he explained.
He stressed that world leaders, leading institutions, scientific communities, businesses, and organisations are now 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, he admitted, is becoming louder, and the coalition big, but added that 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.