OPEC urges its member countries to reject fossil fuel phase out at COP28
OPEC has urged its member countries to reject calls for fossil fuel phase-out at the ongoing COP28.
In a recent letter addressed to its members, Haitham Al-Ghais, the Secretary General of the Organization of Petroleum Exporting Countries (OPEC), said it is important to focus on cutting down emissions rather than targeting fossil fuels, which is important to ensure a transition that is just and fair to all.
In his letter, he expressed concern about politically driven campaigns that might endanger the prosperity and future of global populations.
He took the chance to respectfully appeal to all esteemed OPEC member countries and non-OPEC nations to be proactive in rejecting any proposed text or formula during discussions that specifically target energy sources like fossil fuels instead of focusing on reducing emissions.
Al-Ghais told S&P Global Commodity Insights that there should be ongoing advocacy for emission reduction rather than the exclusive selection of energy sources.
He highlighted the global necessity for substantial investments across various energy sectors, encompassing hydrocarbons and diverse technologies.
Al-Ghais emphasised the importance of understanding and addressing the energy requirements of all communities. Additionally, he stressed the significance of ensuring that energy transitions are equitable, fair, and inclusive for all.
Also, during the second Joint GECF-OPEC Coordination Meeting held in Dubai at the ongoing COP28 to discuss developments related to the climate conference and the ongoing negotiations, Al-Ghais emphasised the importance of a balanced and all-inclusive outcome.
He said, “Our goal must be to reduce emissions, which is the core objective of the Paris Agreement while ensuring energy security and universal access to affordable energy. All types of energy and the deployment and transfer of all relevant technologies will be required.”
The Permanent Secretary at the Ministry of Petroleum Resources, Gabriel Aduda, tweeted late Saturday night (December 9) that: “Fossil fuels, particularly natural gas, are crucial for sustainable development. The GECF-OPEC side event at COP28 emphasised the importance of developing technologies like carbon capture utilisation and storage (CCUS) alongside others. The focus should be on reducing emissions from fossil fuels, not phasing down or out!”
Recall that in a September 2023 statement, OPEC brushed off an assertion by the International Energy Agency (IEA) that fossil fuel demand would peak before 2030. In response, OPEC emphasised that over the years, predictions of reaching peak supply and more recently, peak demand have consistently failed to materialise.
They highlighted the current danger posed by such forecasts, particularly when they advocate for halting investments in new oil and gas projects.
According to OPEC, predictions aimed at halting oil and gas investments are often driven by ideology rather than factual evidence. They argued that this perspective fails to recognise the ongoing technological advancements within the industry aimed at reducing emissions.
Additionally, it overlooks the fact that fossil fuels still constitute over 80 percent of the global energy mix, a figure unchanged from three decades ago. OPEC stressed the vital role these fuels play in ensuring energy security.
Speaking during a presentation at the ongoing COP28, the Director General of the National Climate Council, Salisu Dahiru told attendees that Nigeria will not stop using fossil fuels.
According to him, Nigerian delegates are going to ensure that the country is not shortchanged in any way while stating emphatically that the country will keep exploiting its oil and gas resources.
He said the country’s economic growth is dependent on the expansion of its fossil fuel use. He stated, “We are concerned about the phase out of fossil fuels which is against Nigeria’s position and Africa’s position, and we are trying to see how that can be reflected in the COP itself.”
It is important to note that the entire continent of Africa currently contributes about 3 percent to global greenhouse gas emissions, while first-world country, China contributes about 30 percent (as of August 2023).
