Nations must have the opportunity to sustainably develop their natural resources without compromising energy accessibility, affordability, and reliability. This is why a technology-agnostic approach, where hydrocarbons coexist with alternative solutions such as renewables and hydrogen, is crucial, especially as we see the paradigm of energy demand shifting to emerging and developing countries.

In this context, global transition policies must be more adaptive and there can be no one-size-fits-all approach. A blanket approach could severely limit the competitiveness of countries with lower levels of economic maturity.

Although alternatives are part of the solution, private capital has historically been unwilling to invest in technologies such as carbon capture and storage (CCS), hydrogen and energy storage. There is scope for this to change, but increased awareness and knowledge sharing will be needed to facilitate greater understanding of potential investment risks and capital costs.

Fiscal enablers that connect financial support to industrial value chains can also help economies unlock opportunities and provide investment certainty. The creation of long-term agreements is another factor that could potentially support the adoption of technologies such as low-carbon hydrogen, an area where we see significant opportunities.

But investing in the energy transition is not just about market mechanisms. Infrastructure is also key and the two must go with new projects benefiting from existing infrastructure wherever possible.

Translated by: A.M