Saudi Aramco calls for prioritising needs of global south in energy transition planning given demand, consumption trends
- Some 80 per cent of the world’s energy output goes to the global south and this is expected to rise to 90 per cent by 2050, CEO Nasser says
- ‘You need to have a transition that takes [into account] the economic maturity of different countries and a multi-speed transition’
As the net-zero commitments by 2050 are approaching, an effective energy transition process is required to resolve key issues like affordability, security and sustainability, CEO Amin H. Nasser said at the Future Investment Initiative conference in Riyadh on Tuesday.
Some 80 per cent of the world’s energy output goes to the global south and this is expected to rise to 90 per cent by 2050, he said. Energy users will increase by 2 billion, with 98 per cent of this projected to come from the global south, he added.
“I think the one-size-fits-all approach [on energy transition] is not acceptable,” Nasser said. “You need to have a transition that takes [into account] the economic maturity of different countries and a multi-speed transition.”
The “global south” is a term referring to underdeveloped and developing countries in the regions of Africa, Latin America and the Caribbean and Asia, as opposed to the rich, industrialised nations.
Talking about a realistic transition, Nasser said demand growth is the key, given that the global economy can become stronger in the next two years. Particularly, economic growth in China will help boost energy demand due to the greater pursuit of different lifestyles.