LOC17:18
14:18 GMT
TUNIS, Jan 19 (KUNA) -- It is imperative for oil producers around the region to ratchet up efforts aiming to push forward energy transition plans, the chief of the Arab Energy Organization (AEO) said on Sunday, citing climate change as justification for the move.
The emergence of "new challenges," faced by Arab oil producers and exporters, particularly dealing with a business supply chain audit law known as the Corporate Sustainability Due Diligence Directive (CSDDD), which could spark a negative ripple effect across national economies as a whole, Jamal Al-Loughani told an energy and economic summit in Libya.
It is now incumbent upon oil firms to adhere to the Paris Climate agreement, which calls on the world's largest economies to pledge to a timely transition to a net-zero carbon emissions energy systems by the year 2050, the official underlined.
He praised the efforts of the talks' host-nation Libya and Tripoli's "active participation" in the AEO's activities and endeavors, besides being an oil powerhouse in terms of the "quality and purity" of its crude-based products, added the official.
Member states of the AEO, formerly known as the Organization of Arab Petroleum Exporting Countries, face a myriad of challenges, chief among them a dearth of investment in the oil industry, which could subsequently threaten supply chains amid soaring demand, he said, emphasizing the need for to push forward energy transition plans.
Introducing a raft of economic reforms is one viable strategy that could lure investment in the oil industry, at a time where major firms and businesses are "thirsty" for further growth in this "significant sector," in addition to handling existential challenges with "prudence," added the official. (end)
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