UAE Energy Minister Backs JPMorgan's Call For 'Reality Check' On Global Energy Transition

The United Arab Emirates’ (UAE) energy minister, Suhail Al Mazrouei, has expressed his support for JPMorgan’s recent cautionary stance on the global energy transition.

What Happened: Al Mazrouei, stated that JPMorgan’s call for a “reality check” on the world’s energy transition is a “sensible” approach, while speaking with CNBC, in Riyadh, Saudi Arabia on the sidelines of the World Economic Forum.

"We need always, whenever we put up predictions, especially long term ones, to have a reality check," Al Mazrouei said.

He emphasized the need for realistic predictions, especially in the long term, and acknowledged the varying circumstances and financial capabilities of different countries in pursuing energy transition goals.

JPMorgan recently issued a note to clients, warning that the global shift from fossil fuels to renewables could take “generations” to achieve.

The report also highlighted the impact of factors such as higher interest rates, inflation, and ongoing conflicts in regions like Ukraine and the Middle East on efforts to reduce fossil fuel usage.

See Also: Former Democratic Senator Says Biden’s New Capital Gains Tax Proposal Aimed At Billionaires Has ‘No Chance’ Of Passing

Al Mazrouei’s comments come in the wake of the 2015 Paris climate accord, which set ambitious targets for global emissions reduction. However, the minister noted that the current economic and geopolitical landscape could significantly affect the ability of countries to meet these targets.

Why It Matters: The global energy transition has been a topic of intense debate and concern. Earlier in March, Amin Nasser, the CEO of Saudi Aramco, cautioned that the current energy transition strategy is not yielding the expected results and is colliding with “five hard realities.”

Meanwhile, Janet Yellen, the U.S. Treasury Secretary, expressed concern about Chinese industrial policies, including government subsidies and manufacturing overcapacity, which have led to a flood of cheap clean-energy product exports around the world. This has raised questions about the future of the U.S. green energy industry.

Read Next: Donald Trump Goes Off On One Candidate For Stealing Potential Votes Away From Him In Tight Race Against Joe Biden: ‘Would Essentially Be A WASTED PROTEST VOTE’