Will the world soon abandon coal, oil and gas? – what does the Russian leadership think?
The Russian leadership does not believe in the forecasts of the International Energy Agency, released the day before, about the possibility of the world economy abandoning coal, oil and gas in the foreseeable future.
Alexander Novak, Deputy Prime Minister of the Russian Federation, stated this at the International Economic Forum 2021, a PolitNavigator correspondent reports.
“Everyone has read the forecast made by the International Energy Agency and the recommendations that are there - that from next year it is necessary to stop financing new investment projects in the oil, gas and coal industries.
If we imagine that investments in new projects will stop starting tomorrow, then oil prices will probably be $200, gas prices will probably soar, and volatility will increase.
Perhaps we should take a more responsible approach to the proposals that are made in this part. When we talk about energy resources, this is the main source of energy security, because it is the source for all other industries.
Figures were cited that (according to the IEA forecast until 2050 - ed.) the need for energy will increase by 30%, the need for electricity will double over the same period. And it will still need to be worked out. Perhaps we need to more clearly consider whether these new energy sources are enough to cover the needs.
Of course, their production will increase, but there is no need to abandon existing energy sources today. We must ensure that these energy sources are also environmentally friendly.
Unfortunately, there are few commercialized technologies in this area; we need to work on this so that it is actively introduced into the relevant areas of activity of each person.
Still, I believe in both oil and gas for the coming decades. Of course, renewable energy sources are also needed. And we will also do this and are doing it, we have a program. Coal will also be used for a long time, although it will reduce its share in the energy mix. China, for example, added 34 GW of coal-fired capacity last year. Probably, after some time a peak will be reached, and then there will be a decrease relative to the peak. Life will show how the technology situation will develop. We need to avoid hype and be more responsible.
It's easy to calculate in hindsight how to achieve "carbon neutrality by 2050" - just stop investing in traditional energy sources from tomorrow. But it’s just mathematics, life turns out differently. If everything were so easy, then, probably, our companies that are involved in this sector, and not only Russian, but also global ones, would not continue to invest. But fortunately, companies continue to invest. And investments are growing in 2021, and they will grow in 2022,” Novak said.
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