(MENAFN– Kuwait News Agency (KUNA))
KUWAIT, Aug 24 (KUNA) — Arab Energy Organization (AEO) Secretary-General Jamal Al-Loughani emphasized on Sunday, the importance of diversifying the energy mix, stressing that oil and gas will remain dominant with over 50 percent share both now and in the future.
Al-Loughani made this statement to KUNA on the occasion of the Secretariat’s release of the quarterly monitoring report concerning developments in new and renewable energies, energy transitions, and climate change for the second quarter of 2025.
Al-Loughani attributed this dominance mainly to rising demand for oil and gas across various economic sectors, including transport and electricity, alongside their indispensable role in key industries such as petrochemicals, fertilizers, and several heavy industries critical for development.
He explained that increased investment and innovation by member states in clean technologies, like carbon capture, utilization, and storage, will ensure that the petroleum industry becomes more sustainable and reliable in meeting growing global energy demand effectively.
The renewable energy sector, meanwhile, experienced notable global expansion during the second quarter of 2025, driven by large investments and supportive policies, with China continuing leadership by securing half of global solar capacity and developing pioneering wind technologies.
Al-Loughani pointed out that in the US, clean energy supplied the majority of electricity for three consecutive months, March to May, marking an unprecedented milestone, while India recorded strong growth in renewable capacities.
He also highlighted that several Arab countries continued pursuing policies to support renewable energy, in alignment with broader strategies of economic diversification and long-term sustainability, thus strengthening resilience against external shocks and volatile global energy markets significantly.
Despite positive momentum, renewable energy faced challenges including political and regulatory instability in some markets, stressing that reinforcing renewable infrastructure has become a necessity, particularly as climate risks escalate alongside global interest in sustainable energy.
Al-Loughani affirmed that Arab countries possess the capacity to produce green hydrogen competitively, enabling carbon reduction directly or via derivatives like ammonia, while attracting foreign investment, creating jobs, improving trade balance, and exporting low-carbon products internationally.
He stressed that aligning ambitions with implementation capacity is essential for a successful energy transition, noting it is no longer merely an environmental issue but a cornerstone of economic stability.
This requires adopting realistic strategies, securing long-term investments, and establishing reliable regulatory frameworks.
Despite global progress, a significant financing gap remains, with over 90 percent of clean energy investments since 2021 concentrated in advanced economies and China.
This is in contrast to the fact that 80 percent of future energy demand growth is expected from developing countries, which highlights a structural imbalance that must be addressed to ensure a fair and effective global transition.
He emphasized the strategic role of nuclear energy in enhancing global energy security and reducing emissions. While challenges remain, continued advances in reactor technologies present new, flexible, and efficient options suitable for a wide range of national needs.
Critical minerals markets, he said, are central to the clean energy shift. However, geopolitical constraints pose key challenges.
He underscored the importance of boosting investments in exploration, recycling technologies, and global partnerships to ensure market stability and prevent supply disruptions that could hinder the transition to a low-carbon economy.
Al-Loughani also highlighted the growing role of data centers as vital infrastructure for the digital global economy. As artificial intelligence and digital services expand, he called for greater coordination between tech firms, governments, and energy providers to secure clean and reliable power sources, while promoting innovative solutions to reduce consumption and enhance operational efficiency.
Climate change, he stated, has become a pressing reality requiring urgent global action for adaptation and mitigation.
He called for COP30 to be a turning point in delivering fairness, equity, and financial support for those most vulnerable to climate risks.
Finally, he noted that artificial intelligence holds vast potential to curb greenhouse gas emissions by optimizing energy use, improving distribution, monitoring industrial emissions, enhancing grid efficiency, forecasting energy demand, and enabling early warning systems for extreme weather to allow for proactive disaster risk management. (end)
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