ON whether electric vehicles and battery technologies will pose a threat or complement traditional fossil fuels in the transport and industrial sectors, Haitham said it is important to put this in context.
“Yes, battery technologies are improving, yes, electric vehicles (EVs) are witnessing growth, but this comes at the same time as an expected huge expansion in the overall global vehicle fleet, which is set to increase from around 1.7 billion to 2.9 billion in 2050,” he said.
“By this time, internal combustion engine vehicles are still expected to account for more than 70per cent of this.
“Moreover, as EVs expand they also face increasing challenges. For example, critical minerals, such as copper, cobalt, silicon, nickel, lithium, graphite and rare earths, underpin the development of EVs.
.jpg)
“Some talk of demand for critical minerals quadrupling by 2040, with lithium alone expected to witness a nine fold expansion, a pace never seen before in history,” he said.
“To put it simply, the future will require a huge number of new mines, a huge expansion in battery manufacturing capacity and massive amounts of energy and new electricity grid infrastructure.”
Hence, EVs will complement traditional-based fuels in the coming decades, not replace them.
On making oil production and consumption more sustainable, Haitham said Opec take global efforts to combat climate change very seriously.
“As far back as 1992, before the Rio Earth Summit, we convened a ministerial meeting to discuss environmental matters.
“Opec has since participated in every meeting of the COP and it will continue to do so going forward. All our member countries are also signatories to the Paris Agreement.”
Opec member countries are also investing heavily in technologies, such as carbon capture utilisation and storage (CCUS), direct air capture, hydrogen as well as the concept of the circular carbon economy, all of which can help improve efficiencies and reduce emissions in every part of the oil industry’s value chain.
“Here, it is important to remember that it is emissions reduction that is the objective of the Paris Agreement; not choosing energy sources.
“Moreover, it is vital to recognise that negotiations must adhere to the principle of ‘Common but Differentiated Responsibilities’, which reflects countries’ respective capabilities and their social and economic condition, as well as historical responsibility.
“There is no ‘one-size-fits-all’ formula for addressing the climate challenge,” he stressed.
“It is also extremely important that developed countries support developing countries through climate finance and technological transfer, and ensure these funds get delivered.”
