Saudi minister says COP28 will not impact oil – 12/14/2023 – Environment

The agreement adopted on Wednesday (13) at COP28, the UN (United Nations) climate conference, in Dubai, on the progressive elimination of fossil energy will, in the short term, have little impact on the oil industry in the Gulf, esteem those responsible and specialists.

Saudi Arabia’s influential Energy Minister, Prince Abdulaziz bin Salman, was quick to minimize the scope of the document in an interview with the Al Arabiya Business portal.

The prince stressed that this agreement would have “no impact” on oil sales in his country, which is the world’s largest exporter. According to him, the text “does not impose anything” on producing countries and allows them to reduce their emissions “according to their resources and interests”.

He also pointed out that this is not an “agreement on the immediate or progressive elimination of fossil energies, but rather a transition process”.

“As it exists now, the question of immediate and gradual disposal [dos combustíveis fósseis] was buried,” said Salman, who thanked his UAE hosts, saying there was full coordination between the two countries.

“There was perfect cooperation between us. They didn’t abandon us, we were always coordinating and consulting constantly, and they gave us priority that I don’t think I’ve ever seen in any conference of this kind,” he said.

Abdel Aziz ben Salman had previously demonstrated his opposition to the inclusion of a reduction in fossil fuels in the agreement.

The COP28 agreement stipulates that countries transition according to “different national circumstances, pathways and approaches.” The text omitted any mention of “progressive reduction” or “progressive elimination” of these energies.

The document, approved by around 200 countries, is the result of commitments negotiated by the president of COP28, Sultan Al Jaber, who also heads the state oil company Adnoc.

The official press agency of the United Arab Emirates, WAM, described the text as “mutually advantageous” and saw COP28 as a “decisive moment in the fight against climate change”.

Producing oil for decades

Saudi Arabia and the United Arab Emirates, large petrostates, also invest in renewable energy and say they want to decarbonize their economies.

According to analysts, the Gulf monarchies are not ignoring the economic opportunities of the energy transition.

“[Essas nações] will continue to produce and export oil for decades,” Ben Cahill, a researcher in the energy security and climate change program at the Center for Strategic and International Studies, a North American think tank, told the AFP news agency.

“But the UAE also invests to create a more diversified energy system and is considered a global player in financing the energy transition,” he added.

Middle East expert Andreas Krieg considered the agreement something important, which sets a trend.

“I believe this is a change of discourse for the Gulf countries, which understand that the intention to gradually eliminate fossil energy will be offset by a relatively stable demand for oil and, without a doubt, gas in the coming decades outside of developed countries “, he stated.

The million dollar question

For Cinzia Bianco, a researcher at the European Council on International Relations, the way Saudi Arabia adhered to the agreement is “the million-dollar question.”

“The United Arab Emirates benefits from the production of fossil energy, but has already committed to this transition, long before other producers”, he analyzed. “It was easier for them than for the Saudis, who weren’t as willing to compromise.”

According to Krieg, the Saudi position “must be considered in light of the growing competition between the Gulf countries.” “Given that the global consensus was so strong and overwhelming, Saudi Arabia did not want to be isolated.”

Kristian Ulrichsen, who leads the Middle East mission at the Baker Institute in Houston, Texas, COP28 was of particular importance to the UAE.

“[O país] invested a lot of political and diplomatic capital in COP28 and wanted precisely this type of historic declaration, which would associate the UAE with the establishment of the global agenda and a new consensus on the way forward,” he declared.