President Ali highlights financing Challenges in global renewable energy transition

In addressing some of the challenges in transitioning towards a globally efficient, renewable energy-focused world, President Dr. Mohamed Irfaan Ali emphasised that financing remains one of the core hurdles to overcome.

President Ali was part of a high-level panel discussion at the Clinton Global Initiative (CGI) focused on accelerating the transition to renewable energy and scaling public-private partnerships.

He underscored, “We are not short of ideas, there is growing technology but the challenge is finance.

“We have technology that could cut emission by 25 per cent, but the cost to get to where we want to be in 2030 is simply prohibitive, the money is not there.”

However, he said, a more complex issue is the necessity of adopting a constructive approach to this matter. The president noted that noting that excluding any stakeholder, including petroleum producers, is not one that would lead to a constructive approach.

“If we want to have a frank and constructive conversation, we have to have everyone in the room… we have to get those in coal, those in petroleum to make some commitment, along the line of research and development, technology, the carbon takes and also the removal of subsidy,” he said

President Ali outlined five areas that need to be address the matter of renewable energy, particularly at the upcoming 2023 UN Climate Change Conference (COP 28).

These areas include determining the role of petroleum producers, the role of companies and countries in the context of renewable energy, strategies to secure increased budget resources for research and development, and providing greater support for technology integration and the introduction of new technologies into the equation.

Furthermore, he stated that as a newcomer to the petroleum industry, Guyana is proposing and endorsing a carbon tax while advocating for the removal of subsidies for petroleum producers.

“So, those are the things we are taking to COP and I think this balance approach is critical. if we don’t pursue a balance approach then we are not going to constructively tackle this problem,” he underscored.

He stated that Guyana is actively pursuing 100 percent renewable energy and aims to establish an energy hub, where the country will be a net exporter of energy, with the majority of it sourced from renewable sources.