Kuwait city: Arab Energy Organization (AEO) Secretary-General Jamal Al-Loughani emphasized the importance of diversifying the energy mix while maintaining that oil and gas will continue to hold a dominant position with over 50% share both currently and in the future. Al-Loughani made these remarks to KUNA coinciding with the Secretariat's release of its quarterly monitoring report on new and renewable energies, energy transitions, and climate change for the second quarter of 2025. According to Kuwait News Agency, Al-Loughani attributed the sustained dominance of oil and gas to the rising demand across various economic sectors such as transport and electricity, and their vital role in industries like petrochemicals, fertilizers, and heavy industries critical for development. He highlighted that increased investment and innovation in clean technologies, such as carbon capture, utilization, and storage, will ensure sustainability and reliability in meeting global energy demand. The report noted significant glo bal expansion in the renewable energy sector during the second quarter of 2025, driven by substantial investments and supportive policies. China continues to lead by holding half of the global solar capacity and pioneering wind technologies. In the US, clean energy supplied the majority of electricity from March to May, marking a significant milestone, while India saw strong growth in renewable capacities. Al-Loughani also mentioned that several Arab countries are actively pursuing policies to support renewable energy, aligning with broader economic diversification strategies to enhance resilience against external shocks and volatile global energy markets. However, renewable energy faces challenges including political and regulatory instability, emphasizing the need to reinforce renewable infrastructure, particularly as climate risks escalate. He affirmed that Arab countries have the capacity to produce green hydrogen competitively, aiding carbon reduction and attracting foreign investment, creating jobs, i mproving trade balance, and exporting low-carbon products internationally. Aligning ambitions with implementation capacity is deemed essential for a successful energy transition, now considered a cornerstone of economic stability rather than merely an environmental issue. Despite global progress, a significant financing gap persists, with over 90% of clean energy investments since 2021 concentrated in advanced economies and China. This contrasts with the expectation that 80% of future energy demand growth will come from developing countries, highlighting a structural imbalance that needs addressing for a fair and effective global transition. The strategic role of nuclear energy in enhancing energy security and reducing emissions was also emphasized, with advances in reactor technologies presenting new options suitable for varying national needs. Critical minerals markets are crucial to the clean energy shift, though geopolitical constraints pose challenges. Al-Loughani underscored the need for boosting inv estments in exploration, recycling technologies, and global partnerships to ensure market stability and prevent supply disruptions that could impede the transition to a low-carbon economy. He highlighted the increasing importance of data centers as infrastructure for the digital economy, urging greater coordination between tech firms, governments, and energy providers to secure clean, reliable power sources. He called for COP30 to serve as a turning point in delivering fairness, equity, and financial support to those most vulnerable to climate risks. Finally, he noted the potential of artificial intelligence to significantly reduce 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 manage disaster risks proactively.
