Investment in new oil and gas production will still be needed in the energy transition. This is as demand will still be there over the next few decades says Mark Carney. He is the former governor of the Bank of Canada and the Bank of England.
The world is raising investments in clean energy. However, oil and gas will still be necessary and will need investment to keep up with demand. Carney is currently head of transition investing at Brookfield Asset Management.
The energy crisis and policy actions sent global investment in low-carbon energy sources. It is soaring to a record $1.1 trillion in 2022. The money spent on the energy transition equaled for the first time investment in the supply of fossil fuels.
“We’ve moved from investment around the world of about 50 cents in clean energy five years ago relative to every dollar in fossil fuels, in conventional energy, to now, that ratio is we’re spending more on clean energy than we’re spending on fossil fuels in terms of investment,” Carney told CTV.
“But that ratio, by the end of this decade, to be on track to where the world needs to get to, needs to go to about four-to-one or five-to-one, clean to fossil fuels.”
“But it’s four-to-one, it’s not four to zero, so there still does need to be some investment in fossil fuels,” he added.