We recently attended the inaugural Energy Asia 2023, organized by PETRONAS in collaboration with Knowledge Partner CERAWeek by S&P Global.
Taking place in the Kuala Lumpur Convention Centre, the conference has sparked a fresh discourse on the new realities of energy transition, highlighting the imperative for Asia’s voice to be heard more prominently in the global pursuit of a net-zero future.
Themed “Charting pathways for a sustainable Asia,” the three-day conference brought together global leaders, business executives, and industry experts from across 19 sectors to discuss and devise actionable solutions for achieving a sustainable future in Asia while addressing emissions and fostering economic growth and social progress.
An Inclusive Platform for Dialogue
Energy Asia featured a distinguished lineup of over 100 renowned speakers and witnessed the participation of 4,600 delegates and more than 10,000 visitors from 27 countries.
PETRONAS President and Group CEO, Tengku Muhammad Taufik, emphasized the conference’s distinctive focus on actionable solutions and its intention to amplify dialogues that were previously dominated by more matured and developed economies.
The event aimed to tackle issues directly relevant to Asian industries and emerging economies, which face the formidable challenge of energy transition.
Collaboration and Innovation as Key Drivers
Tengku Muhammad Taufik stressed the importance of collaboration between the public and private sectors, as well as the role of innovation in driving actionable solutions for a just and responsible energy transition in the region.
While the journey towards achieving a net-zero future poses challenges, he highlighted the realistic steps that can be taken along the way.
Supportive and coherent policies from governments, coupled with significant contributions from multilateral institutions, development banks, and private investors, are essential to accelerate progress in the right direction.
Unlocking Financing for Decarbonization
One of the pressing needs highlighted during the conference was the unlocking of much-needed financing to facilitate the decarbonization of emerging economies.
With Asia serving as a major energy market and a global growth driver, fostering inclusive regional cooperation in navigating the energy transition can set an example for the world.
PETRONAS, as a progressive partner, aspires to deliver realistic, pragmatic, and practical pathways to help achieve these goals.
Concrete Collaborations
Alongside Energy Asia, PETRONAS entered into 11 collaboration agreements with various partners.
Notable among them was the launch of the ASEAN Energy Sector Methane Leadership Programme (MLP), aimed at managing methane emissions within the region in collaboration with sector energy operators, governmental agencies, and international organizations.
Additionally, PETRONAS signed a development agreement with TotalEnergies Carbon Neutrality Ventures and Mitsui to collaborate on a carbon capture project in Malaysia.
The Vital Role of Asia in Global Net-Zero Ambitions
One undeniable fact emerged during Energy Asia 2023: the world cannot achieve a net-zero future without Asia’s active participation and successful transition to net-zero emissions.
The sheer size of Asia’s population in relation to the global population underscores the significance of the region’s commitment to sustainability and the urgency for collective action.
With over 4.6 billion people, or approximately 60% of the world’s population, residing in Asia, the region’s carbon footprint is substantial.
Consequently, any meaningful progress towards global net-zero targets requires a comprehensive and ambitious approach from Asia.
The transition of such a large population to sustainable practices, renewable energy, and reduced carbon emissions is crucial in achieving a net-zero future.
The impact of Asia’s energy choices and emissions cannot be underestimated.
As the region experiences rapid economic growth and urbanization, the demand for energy continues to rise.
However, with this growth comes an opportunity for Asia to leapfrog conventional fossil fuel-dependent systems and embrace clean energy technologies.
By prioritizing renewable energy sources, energy efficiency, and sustainable practices, Asia can significantly contribute to global decarbonization efforts.
Furthermore, Asia’s economic influence and role as a global manufacturing and production hub make it essential for industries to adopt sustainable practices.
Transitioning to low-carbon manufacturing processes, investing in renewable energy solutions, and implementing green technologies can greatly reduce the region’s environmental impact and serve as a catalyst for global change.
Collaboration and knowledge-sharing between Asia and the rest of the world are paramount to achieving net-zero goals.
The international community must support Asia’s transition by providing technical expertise, financial resources, and policy frameworks that facilitate sustainable development.
Through partnerships and shared learning, Asia can benefit from the experiences of other regions while contributing its unique perspectives and innovative solutions to the global climate agenda.
Supporting Oil and Gas Companies in a Successful Energy Transition
While the urgency to transition away from fossil fuels is undeniable, it is essential to recognize the significant role that oil and gas companies can play in decarbonization efforts.
While the long-term goal is to achieve a fully renewable energy system, the reality is that fossil fuels will continue to be part of the energy mix for some time.
Rather than demonizing these companies, a more productive approach is to collaborate and assist them in navigating a smooth and successful energy transition. Here’s why:
Expertise and Resources
Oil and gas companies possess invaluable expertise, technological capabilities, and extensive infrastructure.
These assets can be repurposed and leveraged to accelerate the development and deployment of cleaner energy solutions.
By collaborating with these companies, we can tap into their knowledge and resources to drive innovation and facilitate the transition to a low-carbon future.
Investments in Renewable Energy
Many oil and gas companies have already begun diversifying their portfolios and investing in renewable energy sources.
By supporting and encouraging this shift, we can expedite the growth of renewable technologies and benefit from the substantial investments made by these companies.
Their financial resources and market influence can contribute to the scalability and affordability of clean energy solutions.
Carbon Capture and Storage (CCS) Technologies
Oil and gas companies are well-positioned to lead the development and implementation of carbon capture and storage technologies.
CCS offers a viable solution for mitigating emissions from fossil fuel operations.
By investing in CCS projects, these companies can contribute to significant emissions reductions while continuing to meet global energy demands during the transition phase.
Job Creation and Economic Stability
Oil and gas companies play a crucial role in providing employment opportunities and contributing to economic growth in many regions.
A sudden and drastic decline in these industries could have adverse effects on workers and communities.
By supporting these companies in their transition efforts, we can help ensure a just and equitable energy transition that prioritizes job creation and economic stability.
Embracing Renewables and Innovative Solutions
Asia recognizes the need for a transformative journey towards reducing greenhouse gas emissions and offsetting remaining ones.
To meet the climate goals of the Paris Agreement, the region must increase the global energy share from renewables from the current 3% to 31% by 2050 while significantly reducing reliance on fossil fuels.
Carbon capture use and storage (CCUS) and direct air capture (DAC) are expected to play vital roles in achieving these targets.
Conclusion
Energy Asia 2023 provided an inclusive platform for constructive dialogues, actionable solutions, and collaborative partnerships to drive Asia’s transition towards a sustainable, just, and responsible energy future.
By leveraging innovation, promoting collaboration, and unlocking financing, the region can set an example of inclusive regional cooperation while making significant progress in mitigating climate change.
The conference showcased the potential for a greener and more sustainable Asia and highlighted the collective efforts required from governments, businesses, and individuals to achieve a net-zero future.
