G7 meetings provide confidence for Asian energy transition
There were positive outcomes for a range of stakeholders from the much-anticipated G7 Ministerial Meetings on Climate, Energy and Environment in Japan.
For countries in Asia Pacific –particularly those with developing economies – there was reinforcement of the opportunity to undertake unique energy transition journeys, balancing economic growth with progress towards climate objectives.
From the perspective of Asia Natural Gas and Energy Association and its member companies, it was pleasing to see the importance of natural gas to that energy transition again being underscored. It’s vital that the countries and industries we are working with on a variety of energy solutions can progress with confidence as they make key decisions about the future.
With marked increases projected in Asian energy demand to 2050, natural gas can underpin the shift to low carbon economies over the next few decades.
Recent significant and long-term gas sales to Germany suggest Europe will also rely on gas for many years.
To maintain affordable and reliable supply and meet global demand, existing gas exporters and new players in the market will have to bring new projects online. As I’ve written before, Asia needs the world’s support, along with access to its gas.
It is crucial that currently producing countries like the US, Australia and Qatar understand how fundamentally important their energy exports are to a lower carbon future in Asia.
The same applies to a country like Canada, where future LNG exports can be integral to Asia forging a cleaner energy mix.
Ongoing development of and investment in carbon capture, utilisation and storage (CCUS) technology is going to be essential to this global gas supply chain – through production, transport and consumption.
CCUS was one of the core topics of discussion over the past week in Jakarta, where ANGEA engaged in a series of very productive meetings – including with the Ministry of Energy and Natural Resources (ESDM) and Co-ordinating Ministry for Maritime and Investment Affairs.
Energy transition in Indonesia over the next 10 years is something the whole world will be watching. The country is forecast to have the world’s fourth-biggest economy by 2050 and is one of only three nations in the world so far to have entered into a Just Energy Transition Partnership (JETP) with a coalition of developed economies.
Indonesia has a desire to move away from its reliance on coal for electricity generation. Low carbon gas can fill the void and, as a country with significant resources, there is a huge opportunity for Indonesia to produce more gas to benefit its large and ever-growing population.
Indonesia also has strong carbon capture and storage (CCS) opportunities due to its unique geology. The Government of Indonesia recently launched regulations for CCUS and CCS and many ANGEA member companies are already involved with joint ventures in Indonesia based around this technology.
ANGEA looks forward to growing its engagement in Indonesia over the months and years to come.
Indonesia’s ability to reduce emissions will be critical to both Asia and the world achieving climate targets.
And natural gas can be at the heart of it.
Paul Everingham is the inaugural CEO of the Asia Natural Gas and Energy Association (ANGEA), which works with governments, society and industry throughout Asia to build effective and integrated energy policies that meet each country’s climate objectives. Contact him at firstname.lastname@example.org or on LinkedIn.
Main photo from the Ministry of Environment, Japan Twitter account – https://twitter.com/MOEJ_Climate