Climate target

Despite some recent setbacks, progress has been made on climate. Government investment in renewable energy continues, and governments have not scrapped climate targets; Companies are also actively taking steps to reduce their carbon footprint. The rise of carbon markets in regions such as Indonesia has created market incentives in those regions. A similar economic phenomenon is already occurring, with major cloud data center companies and airlines buying carbon credits during major carbon removal processes.

PCM4.3-2044230081A-2044230080A Although global carbon emissions are still climbing, in recent years, the growth of carbon emissions in many countries has leveled off or even begun to decline. This is driven by the power of technology. Technology not only improves energy efficiency, reduces the carbon footprint of traditional fuels, but also promotes the widespread application of green energy. In particular, digital technologies – including the Internet of Things (IoT), mobile and cloud technologies, machine learning and artificial intelligence (AI) – are profoundly changing the way energy is produced and consumed around the world.

In a 2022 report, the IPCC concluded that such technologies could help mitigate climate change and achieve several Sustainable Development Goals (SDGS). The report states that AI can improve energy management in all areas, increase energy efficiency, and facilitate the adoption of many emission-reducing technologies, including in the field of distributed renewable energy. At present, digital technologies to support decarbonization are gradually moving towards industrial-scale application, and this process requires all parties to work together and advance together. For example, Europe’s SARAS Refining Group has partnered with Aspen to deploy advanced emissions management solutions to closely track and reduce carbon emissions, while improving the ability to monetize carbon credits. Nissan Chemical is using Aspen’s industrial artificial intelligence software to operate its ammonia production plant, improving the steam methane reforming process and reducing steam and energy usage by several percent. Saudi Aramco and Aspen are also working together to launch a generative AI-based solution to provide strategic planning for decarbonizing assets.

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A balanced energy transition

PCM4.3-2044230081A-2044230080A The vigorous development of green technology and energy transition strategies is inseparable from precise regulatory systems, sound market frameworks, and adequate financial support. Governments play an important role in this process, and they are responsible for creating an environment conducive to green development. However, the formulation of certain policies may also bring about adverse consequences.

The e Energy Trilemma Index, published by the World Energy Council (WEC), ranks countries according to their progress on three competing needs: energy security, equity and environmental sustainability. Economically advanced countries generally perform well on these three key indicators, while poorer countries tend to score poorly. However, it should not be ignored that many poor countries are rich in hydrocarbon resources, as well as metals and minerals needed for energy transition. People in these countries have expressed strong dissatisfaction with so-called “climate colonialism,” which could undoubtedly have a negative impact on the level of support and speed of progress for the global energy transition.