Qatar is well ahead in preparations for carbon neutral world. Qatar has announced plans to expand its Liquified Natural Gas (LNG) capacity and aims maintain its position as the biggest producer of LNG, said experts in a panel discussion during a webinar organised by Qatar Financial Centre (QFC).
The webinar entitled ‘Structural Factors Driving Positive Change in the Gulf’ shed light on challenges and opportunities for a transition to a post-oil future with a focus on structural reforms to help achieve long-term fiscal sustainability and fair inter-generational wealth transfers.
Delivering introductory remarks, Yousuf Mohamed Al Jaida (pictured), Chief Executive Officer, Qatar Financial Centre discussed a recent report on the future of oil by IMF which stated that global oil demand will peak around the year 2040.
He said technological revolution is making renewables cheaper, more affordable. There is a global consensus around climate change to combat it, all of which is pushing the demand of oil and gas and other fossil fuels down and thereby accelerating this energy transition, he added.
Al Jaida said, Qatar is well ahead in such preparations for carbon neutral world. Qatar National Vision 2030 is transforming the country into an advanced nation capable of achieving sustainable development. And the key factor to realizing that vision is to commit towards economic growth and diversification.
In this regard QFC, he said, plays a crucial role as a regional and global financial centre, the QFC provides the best in class platform to international companies to do business in Qatar to expand into the region. The QFC is a gateway for Foreign Direct Investments to the Qatari market and facilitates knowledge transferred from leading international companies, he added.
Thaddeus Malesa, Senior Advisor for Economics and Research, QFC presented a paper by Irfan Aleem, visiting fellow at Brookings Doha Center.
He said, “Governments in the Gulf have long been preparing and working towards achieving a post-oil future. Most of the savings are located in sovereign wealth. The transition that is upon us as the IMF foresees shows that there are urgent decisions that need to be made.” In the long term the vast majority of urban emitters around the world are now committing to a net carbon position by 2050 and these are all energy customers of Qatar. So this will inevitably change their energy consumption behaviour, he added.
Tarik Yousef, Senior Fellow, Brookings Doha Center said, Qatar primarily relies on natural gas which is the cleanest of the fossil fuels, is in a privileged position. Qatar has more room for maneuver along with its vast financial wealth and its relatively more straight forward structural issues compared to neighbouring countries.
Sheikha Alanoud bint Hamad Al Thani, Managing Director, Business Development, QFC said, “With seemingly change in oil price outlook hard decisions may need to be made. Many global oil exporters face it difficult to move ahead while Qatar maybe fortunate among the GCC countries. All are looking to achieve fiscal sustainability in their own right.”
