BAKU, Azerbaijan, March 21. The International Energy Industries Council (EIC) has revealed the number of projects related to fossil fuels and renewable energy sources worldwide for which final investment decisions (FID) have been made, Trend reports via the EIC's Global Net Zero Jeopardy report.
According to EIC's research, fossil fuel projects globally have significantly higher rates of reaching FID compared to renewable energy projects.
"Out of 1,069 projects in oil and gas exploration and production worldwide, accounting for approximately $1.29 trillion in capital expenditures, more than one-fifth of the projects have already reached FID, meaning fossil fuel projects totaling $454 billion have been approved," the report said.
EIC noted that, for instance, out of 599 offshore wind energy projects worldwide, only 9.18 percent of them have reached FID, meaning investments totaling $99.5 billion have been approved.
"The EIC member companies, which represent 29 major oil and gas companies worldwide, recognize the need for increased investment in renewable energy globally and for promoting the launch of zero-emission projects.
However, they also point to the currently high costs of the green transition, the importance of ensuring profitability of renewable energy projects for sustainable development, and the need for adequate financing to achieve clean energy goals," the document pointed out.
The report also quoted EIC's CEO Stuart Broadley, saying that "there is a stronger belief—both within our home nations and collectively as one global community—in our ability to correct our course by the ultimate 2050 target date. This optimism is due to the potential for technological advancements and the conversion of policy into implementation."
To note, financing the energy transition is a cornerstone issue of the upcoming COP29 (29th session of the Conference of the Parties to the UN Framework Convention on Climate Change) to be held in Baku on November 11–24.