Amin Nasser urges a revised global energy strategy prioritizing equitable energy transition solutions for Asia and developing nations at Singapore International Energy Week

Saudi Aramco’s CEO, Amin Nasser, has called for a new energy transition strategy, dubbed “Transition Plan 2.0,” which focuses on the needs of Asia and the Global South. Speaking at the Singapore International Energy Week, Nasser emphasised that the current global energy transition is not progressing as expected, citing the slow, inequitable, and complex nature of current efforts.

“This may be Asia’s century,” Nasser remarked, stressing that Asia and the broader Global South are underrepresented in current transition planning. He argued that this exclusion is contributing to the wider world feeling the impact of these deficiencies. He also expressed concern over the disproportionate financial burden placed on developing nations, which could see them paying a higher cost for energy transitions.

Nasser criticised the existing energy strategies for being overly reliant on ideology, proposing instead a more flexible and pragmatic approach to emissions reduction. According to him, this new strategy should prioritise systematic emissions reduction that delivers results without compromising affordability and accessibility. His proposed model would be “multi-source, multi-speed, and multi-dimensional,” ensuring the security, affordability, and sustainability of energy for all countries, particularly in developing regions.

The financial burden of this transition is enormous, with Nasser noting that estimates range between $100 trillion and $200 trillion globally by 2050. For developing nations, the financial gap is even more daunting, with nearly $6 trillion needed annually to fund their energy transitions. Nasser pointed out that the cost of capital is double in these countries, highlighting the urgency for a transition plan that is fairer and more attainable.

He also challenged predictions that oil demand would drop sharply, asserting that even if global oil demand growth stalls, over 100 million barrels per day would still be required by 2050. He dismissed the idea that oil demand could fall as low as 25 million barrels per day, warning that such a scenario would be disastrous for global energy security and affordability.

“Even with the rise in renewable energy, we’re really talking about energy addition, not transition,” Nasser remarked. He explained that alternative energy sources are merely supplementing traditional energy, rather than replacing it in significant quantities. While there has been major investment in renewables, global demand for oil is currently at an all-time high, and natural gas consumption has increased by nearly 70% since 2000.

Nasser also noted that renewable energy progress has been slow, with wind and solar accounting for less than 4% of the world’s total energy supply. Additionally, despite the adoption of renewables, electricity prices in regions like Europe have soared by up to five times in the past two decades.

In conclusion, Nasser argued that the current global energy transition strategy has failed to deliver on its promises, leaving consumers dissatisfied. He highlighted the need for an energy strategy that balances the global ambition for a net-zero future with the realities of affordability and efficiency.

The Aramco CEO’s remarks underscore the growing calls for a more inclusive and equitable energy transition, one that prioritises the needs of developing countries and acknowledges the complexities of a global shift towards cleaner energy. His “Transition Plan 2.0” offers a pathway to address these challenges while ensuring that no region is left behind.