Saudi Finance Minister told the media that if the world does not treat climate policy cautiously, it may trigger a "worse" energy crisis.
Finance Minister Mohammed al-Jadaan said: "Climate policy is very important, but if we don't focus on the process, there will be a very serious energy crisis like the one we have now, and the future may be bad." "At the moment, gas prices across Europe have soared to highs.
According to the Financial Associated Press, governments, businesses and stakeholders have submitted comments to the draft report of the Intergovernmental Panel on Climate Change (IPCC), covering fossil fuel reduction targets, meat consumption, nuclear power, international carbon reduction subsidies and other aspects.
Advisers to the ministry of oil in Saudi Arabia, a major oil producer, asked scientists to remove some of the language, such as "the need for urgent, accelerated (carbon)neutralization actions of all sizes," and senior officials in Australia, a major coal exporter, also objected to the conclusion that the closure of thermal power plants was a necessary step.
Many countries have equated carbon reductions with reduced use of fossil fuels. In response, Jadan called on some countries to find a balance between fossil fuels and emissions reductions. Rather than "throwing a hand" to reduce fossil fuels, he would like to see investments in renewable energy and new technologies for carbon capture, recycling and reuse.
"I think if that balance is found, the world will be much safer in terms of climate change and energy security," Jadan said. "Carbon capture, a technology that captures carbon dioxide from the atmosphere or when it is emitted from exhaust gases, hopes to diversify the country's economic resources and move away from excessive, monolithic dependence on oil."
Oil prices are concerned
So far this year, both Brent and U.S. crude oil have risen more than 65 percent and hovered at years of highs. Jadan revealed that saudi arabia does not want oil prices to be too low, nor does it want to be too high.
"I don't want prices to be too low, which would weaken investment in crude oil; too high would create a serious energy crisis," he explained. He added that the "unintended consequence" of renewable-focused policies in places like Europe has been fueling soaring natural gas prices.
A stable oil price is good for producers, he said, allowing them to continue to focus on supply without undermining the global recovery from covid-19. Jadan also said he was concerned about inflation, but could be sure it wasn't stagflation.
Economist Stephen Roach has also previously warned that a spike in energy prices could affect supply chains in some countries and lead to stagflation — prices rising but slowing economic growth.
Russian President Vladimir Putin on Wednesday made a similar point, "Soaring gas prices will eventually lead to lower consumption, which is why we are not interested in the endless rise in energy prices, including natural gas," the Financial Associated Press reported. ”
Jadan said: "I'm a little worried about high inflation in other countries, especially in energy-related areas. People need to rethink what is being done to cause this supply shortage ... and do their best to correct it. ”