Barkindo: Divesting from oil sector won’t end carbon emissions

Mohammed Barkindo, secretary-general of the Organisation of Petroleum Exporting Countries (OPEC), says withdrawing investments from the oil sector will not end global carbon emissions.

Barkindo was speaking at the virtual OPEC/ World Economic Forum Connect in Vienna, Austria.

He advised the international community to focus on reducing greenhouse gas emissions in order to achieve the long-term goal of the Paris agreement.

The OPEC secretary-general projected that oil and gas will retain the largest share of the energy mix by 2045 despite efforts to downplay investments in the sector.

“That takes us to the crux of our agenda today, as we discuss current trends in the investment community and wider societal pressures that could have a profound impact on the investment requirements that are essential to meet the demand needs of tomorrow,” he said.

“The efficacy of ‘divestment’ has also been called into question by figures as prominent as Bill Gates, who famously said in an interview last year, ‘divestments to date probably have reduced about zero tonnes of emissions’.

“This is a significant statement because the international community’s focus must be on reducing greenhouse gas emissions in order to achieve the long-term goal of the Paris Agreement.”

Barkindo explained that there are several paths to ending global carbon emissions and urged the international community to adopt a holistic approach, adding that tackling climate challenge requires “all hands on deck”.

“At OPEC, as responsible global citizens, we take the climate challenge extremely seriously. We advocate enhanced global collaboration to address the challenge and support the multinational channels that would allow a more coherent, a balanced and integrated approach for realising the Paris Agreement goal and interlinked sustainable development aspirations,” he said.

“The energy transition must be holistic, inclusive, fair and equitable in accordance with the core UNFCCC principles of equity and common but differentiated responsibilities and respective capabilities.

“The first important point to emphasise is that the outbreak of the COVID-19 pandemic resulted in the sharpest downturn in energy and oil demand in living memory, something nobody could have foreseen when we met last year.

“All forms of energy will be needed to support the post-pandemic recovery and address future energy needs. Oil is expected to retain the largest share of the energy mix throughout the outlook period, accounting for a 27 per cent share in 2045.

“World oil demand is projected to increase from nearly 100 mb/d in 2019 to around 109 mb/d in 2045. To meet this future demand, the global oil sector will need a cumulative investment of $12.6 trillion in the upstream, midstream and downstream through to 2045.”