According to a recent study by management consulting firm Bain & Co., around 62 percent of energy executives in the sector anticipate that the world will achieve net-zero emissions by 2060 or later. This perspective is shared across various regions, with oil and gas industry leaders showing the strongest belief in this outcome. The report highlighted concerns regarding the financial viability of energy transition projects, with the primary obstacle being the challenge of finding customers willing to pay higher prices for sufficient returns on investment.
Middle Eastern, Asia-Pacific, and Latin American executives are more optimistic about the future of transition-oriented growth businesses, foreseeing positive impacts on company valuation and profits by 2030. These regions are poised to drive the energy transition journey, especially considering the potential economic benefits and revenue streams from oil and gas resources. Saudi Aramco’s CEO emphasized the importance of continuity in producing various forms of energy to meet rising demand, stressing the need for increased investments in the sector for a smooth transition.
The study also recognized the role of advanced technologies, such as artificial intelligence (AI), in shaping the sustainable future of the energy sector. Executives expressed growing confidence in AI and digital processes significantly impacting their businesses by 2030. However, concerns were raised about the energy consumption of generative AI and its potential to reduce emissions effectively.
Despite the progress in energy transition efforts globally, funding remains a significant challenge for both developed and developing countries. While wealthier nations have more capital to invest, they heavily rely on tax breaks and subsidies, leading to unsustainable practices. On the other hand, poorer countries face pressing issues like poverty, health, and education, diverting attention and resources from addressing climate change effectively.
As the world grapples with the urgency of achieving net-zero targets, collaboration between developed and developing nations is essential. By fostering cooperation and support, countries can work towards a sustainable future for generations to come. Energy transition is a critical agenda that requires unified efforts and innovative solutions to combat climate change effectively.
