UNVEILING COP28: ROLE OF GOVERNMENTS IN ACCELERATING THE RENEWABLE ENERGY TRANSITION

Rory McCarthy, Chief Operating Officer of Yellow Door Energy, spoke on a panel discussion entitled Navigating the Energy Transition: Targets, Policies, and Industry Priorities. He discusses his thoughts after the panel. 

This was also posted on Rory’s official LinkedIn account here.

What does the private sector need from governments to ensure that the energy transition can happen at a faster pace? 

I was asked this very poignant question whilst on a panel at “Unveiling COP28 – Business Leaders’ Conference” in Dubai last week. 

My response on the stage then is the same as my response now. 

Governments spent $7 trillion USD on hydrocarbon subsidies last year, according to the IMF. In other words, $19 billion USD was spent per day to keep the prices of oil, coal and natural gas artificially low. Meanwhile, the West Antarctic ice sheet is melting, forests are burning and we’ve had the hottest year on record last year. 

Oil, coal and gas subsidies cause significant pollution, hurt economies and hinder the just energy transition. It is essential that we change the way we price hydrocarbons: instead of underpricing them with subsidies, we need to price them accurately so that the energy transition can move forward in an effective manner.

The cost of energy is not the only factor impacting businesses in our region. Amongst our customers, many of whom manufacture goods for export to Europe, they also need to take into account the introduction of the Carbon Border Adjustment Mechanism (CBAM) from the European Union. This carbon tax means that manufacturers need to declare the greenhouse gas emissions embedded in their manufacturing processes, specifically for iron and steel, aluminum, cement, electricity, fertilizers and hydrogen.

Evidently, to be a successful business today, you need to consider both energy costs and the carbon footprint of your business. 

Yellow Door Energy is one of the few companies that are 100% focused on and dedicated to renewable energy. This is all we do. We help businesses decarbonize their operations, secure their energy supply and become more resilient. 

With what’s happening in the world right now, resilience, resourcefulness and actions are more important than ever. 

With just 30 days to COP28, I look forward to seeing motion to action, promises to concrete policies and to helping businesses achieve their business and sustainability goals. 

Thank you to Young Presidents’ Organization (YPO) for inviting me to join your esteemed panel discussion on Navigating the Energy Transition: Targets, Policies, and Industry Priorities. 

Thank you to H.E. Dr. Sultan Al Jaber for sharing your insights. Thank you to H.E. Razan Al Mubarak for sharing your wisdom. 

Last but not least, I want to extend my sincere thanks to Amit Dhamani for inviting me and to Andrea Di Gregorio for your excellent moderation. Big thanks as well to fellow esteemed panelists!

Thank you YPO Emirates for putting captains of industry and governmental ministers together under one forum. 

Together, we can advance the just transition!