Commentary on how oil sector can mitigate effects of climate change

Author: George Wachira (Director, Petroleum Focus Consultants), in Business Daily (Kenya), Published on: 16 March 2016

"How oil industry can mitigate effects of climate change in the wake of Paris pact"

...Oil and gas shall remain a major fraction of global primary energy mix for many decades to come. The issue is how the oil industry adjusts their business models to accommodate targeted reduction of fossil fuels use while maintaining their balance sheet values...

To maintain relevance and lead in the energy supply sector, oil companies will likely participate in renewable energy ventures when and where risks are low and returns sufficient. This is also another way of demonstrating corporate green commitment by the oil companies...In the areas of transportation fuels — road, aviation, marine, rail — the oil industry will be expected to play key collaborative roles to innovate technologies and efficiencies that result in net reduction of carbon emissions. They will need to co-operate with original equipment manufacturers to come up with lower carbon technology in the transport sector...

Oil companies have recently insisted that a global carbon pricing mechanism needs to be established as the most equitable way to measure and meet climate targets. Carbon prices also provide a correct currency to evaluate economic viability of various green options and projects. Specifically for Kenya, a robust and active green story already exists mainly in the form of renewable energy projects. Programmes for energy efficiencies are ongoing. Opportunities to reforest the Kenyan landscape exist. All these present partnership opportunities for oil and gas companies.

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