Izah Azahari
One of the biggest contributors to global warming is greenhouse gas emission where carbon dioxide (CO2) makes up the majority of it.
The increasing CO2 has led to rising temperatures that has accelerated in the past few years.
As burning fossil fuel accounts for over 60 per cent of greenhouse emissions, there’s a focus on switching to clean, renewable energy. Carbon trading is picking up and it can play a significant role in reducing CO2 emissions.
All these information were shared during a seminar on carbon market at the Brunei Mid-Year Conference and Exhibition 2022 (Brunei MYCE 2022) moderated by Universiti Brunei Darussalam (UBD) Assistant Vice-Chancellor (Research) Associate Professor Dr Abby Tan – with panellists Brunei Shell Petroleum Company Sdn Bhd (BSP) Managing Director Agnete Johnsgaard-Lewis, Brunei LNG (BLNG) Sdn Bhd Managing Director and Chief Executive Officer Hajah Farida binti Dato Seri Paduka Haji Taib and UBD Lecturer Dr Lutfi Abdul Razak.
Johnsgaard-Lewis in her presentation covered carbon capture storage (CCS) and its importance while giving examples of Shell’s CCS projects and their benefits.
“CCS isn’t new. In fact, it utilises technology that the oil and gas industry has been used for more than 50 years and there have been CCS projects around for over 20 years,” said Johnsgaard-Lewis, adding that there are multiple CCS projects that are efficient and uses modern technology.
“Most climate scientists say CCS technology can reduce emissions and play an important role in energy transition,” she added.
Globally, industries are growing the portfolio for low carbon energy solutions and continue to invest in a wide range of renewable energy such as wind and solar as well as exploring new mobility options such as electric and hydrogen vehicles.
“Despite the benefits, progress on implementing CCS globally has been slow partially due to high cost and concerns that CCS may facilitate a continued use of fossil fuels,” she said.
She noted that new technologies will ultimately be developed to get to a net-zero emission and CCS is asimportant as mitigation during the transition period.
“I believe that countries globally and in the Southeast Asian region will get together to solve this problem with partnership. The solution is here and the challenges are well understood, we just need to work together.”
Meanwhile, Hajah Farida presented on partnership in a value-driven carbon landscape focussing on the carbon market.
She shared that Brunei emits 18.28 tonnes of CO2 per person, which is one of the highest in the world.
“We are at a global crossroads right now. We have to keep the global temperature from rising more than 1.5 degrees Celsius while there is a need to provide a source of reliable, affordable, and clean energy to the world,” she said.
She said the Sultanate has the Brunei Climate Change Secretariat (BCCS) to support the nation’s commitment to become a low-carbon and climate-resilient country.
“It is a delicate balancing act, taking into consideration socio-economic development and protecting the environment. Recognising that every country is at different stages of their own decarbonisation journey, developing nations with a high demand for growth can make a conscious choice upfront with support through policy makers and industrial leaders to provide the resources and capacity to build a future net-zero economy,” Hajah Farida added.
Hajah Farida went on to say that harmonisation with gas suppliers, customers and industry players is fundamental to provide accessible and affordable clean energy to developing nations in the region.
She also talked about how carbon neutral LNG works, nature-based solutions, carbon capture and storage, decarbonisation, CO2 utilisation and value intent.
“As an industry leader, I feel responsible to provide a low-carbon footprint, move from being brown to khaki and, eventually, green industry. So let me close by requesting all of us in this room to enact the mindset to craft the future for the generations to come towards a low carbon climate resilient Brunei,” she said in closing her presentation.
The final presenter, Dr Lutfi talked about financing the transition to a low-carbon economy where he explained that transitioning to a low-carbon world is one of the greatest challenges humankind has faced due to production, consumption and transportation.
“Almost everyone is pledging to get to net-zero emissions. According to the United Nations (UN), more than 70 countries have set the net-zero target covering about 76 per cent of global emissions,” he added. Dr Lutfi also outlined the Brunei context within the transition, followed by an overview of carbon markets and the importance of sustainable finance.
He concluded that carbon pricing instruments are growing in prominence, but global cooperation such as an International Carbon Price Floor may be necessary; as the global economy moves towards a low-carbon future, it is in everyone’s best interests that the transition is orderly and just; there is a huge scope for finance to play a critical role in the transition towards a low-carbon future; and this includes the allocation of capital and the alignment of incentives in influencing production, consumption and investment decisions.
