THE Energy Industries Council (EIC) has voiced concerns that the realisation of 2050 net zero initiatives could be delayed.

Citing the EIC Survive and Thrive Report 2023, regional director Azman Nasir said the report found supply chain companies have shifted back to oil and gas (O&G), mainly over challenges in the consistent availability of renewables and profitability of renewable energy (RE) projects.

“The same report also revealed, based on financial investment decision data, O&G projects are far more likely to proceed with full funding, compared with renewable and transition technologies such as wind and hydrogen projects,” he said.

Azman said this in his speech at the Oil and Gas Asia 2023 and EIC Asia Pacific Energy Conversations in Kuala Lumpur today.

The EIC Survive and Thrive Report 2023, which was published last month, was based on insights from nearly 100 energy supply chain leaders.

Azman said these findings raised the prospect of rapidly widening disparities between green ambitions and the reality of what businesses actually see in their order books.

“Ultimately, these findings raise concerns that net zero 2050 commitments are likely to be delayed,” said Azman.

He said the choice between fossil fuels and RE, which became prevalent in the few years following the Paris Agreement, was seen as unrealistic.

Azman also said energy transition, in line with the 2050 net zero aspirations, posed a formidable challenge to the industry, and more conversations and knowledge sharing were needed to address challenges.

But he said although turbulent times lie ahead in the future of energy, there was a high degree of willingness and enthusiasm for energy transition among key industry players.

“It is worth noting the energy crisis comes with a great opportunity to build and reimagine a more resilient and sustainable global energy system.

“Asia is already recognised as having huge potential to become a hub for energy transition initiatives and low-carbon investments, so let us capitalise on that point and not be swayed by narratives not suitable for this region,” said Azman. – Bernama, September 13, 2023.