While acknowledging the enormous quantity of oil discovered offshore Guyana, the United Kingdom’s COP26 Envoy Dr John Murton says Guyana is now in a unique position to use the massive growth from its oil and gas industry to invest in the clean energy transition.
“I know for Guyana with its recent discovery of oil, a transition away from fossil fuels may feel impossible. However, the truth is that long-term growth is founded in investment in cleaner and greener energy. This country has a unique opportunity and an opportunity to use this phenomenal growth in GDP to invest in clean recovery now, building resilience into its energy grid and providing a sustainable future for its people,” Murton told the international energy conference yesterday at the Marriott Hotel.
He noted that the alternative is much starker and would see investment in “what will in the future become stranded assets.”
Dr Murton told the conference that Guyana has held historically impressive climate credentials adding that the revised low carbon development strategy will pave the way for a reduction in emissions and to help adapt against the impacts of climate change. The government is currently holding consultations on the Low Carbon Development Strategy (LCDS) 2030 and the UK COP26 envoy is encouraging all sectors of society to take part noting that the fight against climate change is a challenge that involves everybody and not just government.
He added that it is common knowledge that many Caribbean countries would require finance and investment to transition to clean energy and in that regard, the Energy Transition Council was established during COP26 held in Glasgow, Scotland in November last year. He explained that the rapid response facility will deliver fast-acting technical assistance to developing countries seeking to make that transition.
“The UK’s work on the access to finance task force alongside our co-chair Fiji will continue to be a priority for my country in 2022. We want to bring the countries, development banks, investors and civil society together to strengthen the clean power investment and assistance offered to all countries. With their help clean power can become an attractive option for new power generation everywhere in the world,” he stated.
He pledged the UK’s support toward continued collaboration with Caribbean countries on the energy front noting that those countries are the global climate leaders and energy producers that are keenly pursuing development and climate goals. Those factors, he said, make Caribbean countries important partners in the transition to a net-zero world.
Dr Murton said that the UK will continue to work closely with the Caribbean advocating for further and faster action through the Nationally Determined Contribution Partnership Programme.
“In the spirit of trade, we will facilitate and promote the Caribbean as a prime region for investment, delivering a pipeline of British expertise and business to support clean growth. CARICOM and Caribbean states will remain integral partners for the UK in the year ahead and beyond and throughout the entire UNFCCC (United Nations Framework Convention on Climate Change) process,” he committed.
Dr Murton told the conference that the science on climate change is clear and in order to keep global warming below 1.5 degrees Celsius countries must commit to building a world that is overwhelmingly fossil fuel-free by 2050. He further related that work needs to commence immediately to decarbonize the global economy three to five times faster this decade than the preceding two.
He added that future prosperity lies in clean energy investment explaining that there is a clear economic and development case for redoubling efforts towards energy transition.
“Boosting investments in renewables is vital not only to climate action, but it will create jobs, drive economic growth and reduce air pollution. Wind and solar are now cheaper than new coal and gas power plants in two-thirds of the world. Solar power is the cheapest form of electricity the world has ever known and this dramatic cost reduction over the last decade, 85% in the case of solar power, has transformed global energy options, particularly in the very poorest countries. Investments in renewables now will pay dividends in the form of greater economic and environmental security in the short term and in the longer-term future,” he informed.
He was also cognizant of the effects the energy transition would have on the fossil fuel industry in relation to employment. On that point, Dr Murton urged that steps be taken to ensure that every community benefits from the transition with carefully thought out policies to support the shift.
