Navigating the Energy Transition: It Takes a Village
The energy transition is an ambitious global endeavor that has evolved from a visionary goal to an urgent necessity transcending borders. It involves more than a change in power sources towards cleaner, cheaper, and more available energy sources: it is a paradigm shift and a transformative journey. In this process, cross-sector collaboration within the entire ecosystem is critical for a successful and sustainable transition.
Overcoming obstacles such as infrastructure transformation, technology innovation, policy alignment, and a lack of financing is critical for a successful energy transition. However, the energy transition is not just a technological or an economic issue; it is a social project and personal ties are critical for achieving our collective goals. These are not just top-down ties through large-scale business or government investment but also bottom-up bonds between the actual people working across different realms of the energy industry.
The Bilateral Chamber has been anchored at the center of the global energy ecosystem system for over 25 years. Our home base in Houston, the energy capital of the world, gave us a unique perspective and an opportunity to cultivate a systems-thinking approach to the energy transition. The global energy ecosystem is a complex and interconnected web of stakeholders, technologies, processes, and industries, requiring us to adopt a holistic approach to understanding interrelationships within the system rather than isolating its components and stakeholders.
Working with thousands of global executives and thought leaders in the energy industry, we learned that collaborations across the entire ecosystem and creating spaces for cross-disciplinary and cross-industry partnerships, knowledge sharing, and the exchange of best practices are paramount for the energy transition's success. The convergence of energy, technology, finance, and policy expertise will foster a much-needed multidimensional approach to problem-solving, leading to actionable, innovative solutions.
In this process, collaboration is an important driving force behind transformative changes. These dialogues take many forms - between start-ups and multinational corporations, and between public and private sectors. Policy incentives and an enabling environment make it easier for the private sector to play its part and bridge the gap between existing and future technologies.
Indeed, the process of the energy transition is full of uncertainties and it may require course correction to overcome bottlenecks. Policy-makers play an important role in this process, as reflected in recent decisions such as the recent pause on approvals for pending and future applications for LNG (liquified natural gas) exports by the US administration to assess their economic and environmental impacts. Undoubtedly, in the process of switching to cleaner sources of energy, technologies such as carbon capture, utilization, and storage (CCUS) play a central role in decarbonizing energy systems, particularly in “hard-to-abate” sectors. But to meet the current emission targets, it would have to grow over 100 times by 2050. Equally, LNG plays a critical role in bridging the gap between fossil fuels and renewables as an important part of the energy mix.
However, public perceptions and a lack of market education often stand in the way of executing energy transition projects, with pressures from public figures, communities, or activists. This is especially the case with the so-called ‘mega projects,’ which require the activation of multiple stakeholders, such as CCUS pipelines.
Building strong personal ties through open, respectful dialogues that cut through ideological and cultural differences is the key to accelerating the energy transformation.
Many more conversations and market education efforts are needed to demystify the energy transition efforts. In the process, building public trust is paramount. Transparent communication, education, and engagement are essential to address multiple public concerns, foster understanding, and gain support for the changes ahead.
Although the energy transition is a global challenge, every country and region faces its unique challenges and opportunities. It is essential to create global collaborative platforms and to ensure that every country has the needed resources to invest in the energy transition and to help low- and middle-income countries overcome their hurdles to transition.
For over a quarter of a century, at the Bilateral Chamber, we have built meaningful partnerships, facilitated dialogues, and spearheaded initiatives that contribute to the global shift towards sustainable energy practices. Visit us at the US Pavilion at GET Congress 2024 and join us in this important endeavor.
Aida Araissi,
CEO, Bilateral Chamber
