Opinions
A man stands at an illegal oil refinery outside Erbil being shut down by the authorities on June 16, 2020. File photo: Bilind T. Abdullah/Rudaw
We are at a moment where the global energy system is undergoing a profound transformation in the way we produce, consume and store energy. From the climate change perspective, the global pandemic and lockdowns have brought some good news, not only for the Kurdistan Region but also globally. With reduced demand for energy and lower greenhouse emissions, we saw an almost 7% decline in CO2 emissions at the global level, the biggest drop ever recorded. This is positive, but comes at a high economic cost.
Climate change mitigation initiatives, particularly with global regulatory constraints on fossil fuel-based resources, will adversely impact the energy sector, particularly oil-based economic sectors. The Kurdistan Region and Iraq have been economically dependent on rich oil and gas reserves for several decades. Combined they are responsible for 0.6 percent of global greenhouse gas emissions. Worldwide, more than 70 percent of greenhouse gas emissions come from fossil fuels.
Being responsible for only 0.6 percent of emissions may not seem to be a lot compared to developed countries. However, in terms of CO2 emissions, Iraq is at 5.2 metric tons per capita because of its heavy reliance on petrol and industrial production, toxic remnants from wars, oil consumption, and dependency on vehicles, all of which causes pollution. According to the Global Environmental Outlook (GEO-6), Iraq is ranked as the world's fifth most vulnerable country to the effects of climate change. It faces decreased access to water and food, and extreme temperatures, which will have a negative impact on food, water, social, and health security.
In December 2015, Iraq signed the Paris Agreement on climate change pledging to reduce greenhouse gas emissions by 15% between 2020 and 2035. And in late 2020, on the fifth anniversary of the Paris Agreement, President Barham Salih announced that Iraq's parliament voted to accede to the agreement and will start bringing the country into a new era. This happened after the United Nations urged Iraqi leaders to take urgent climate action.
But a 15% emission-reduction target is not good enough. If Iraq is to stand a chance of avoiding severe climate change, it must increase its efforts.
To support efforts to reduce global warming, the Kurdistan Region appears to be much better than other Iraqi provinces. Erbil, Duhok, and Sulaimani governorates announced in 2015 a pledge to reduce their greenhouse gas emissions to at least 40% below then-current levels by 2030 with international financial aid and support through the implementation of Sustainable Energy Action Plans. However, these plans have not been incorporated into Kurdistan Regional Government (KRG) laws and policies.
Elevating climate ambitions and engaging in dialogue between the KRG and the Iraqi government are essential. So far we haven’t seen any climate change negotiations or energy transition plans. Yet the country has international and domestic issues to contend with that are directly related to energy. So, formulating a policy is key. Now more than ever we are in need of political motivation and the support necessary to make climate action targets and move ahead with an energy transition plan.
I believe there are three important areas to reduce carbon emissions and support low carbon pathways for sustainability: adoption of a balanced energy transition by the oil and gas companies, support for renewable energy projects, and shift towards economic diversification.
The Kurdistan Region’s economy has taken a pretty big hit under the COVID-19 pandemic and faces a challenge as it looks towards a future of low prices and reduced demand.
More significantly, there are a growing number of international financial institutions that are moving their investments out of fossil fuels and into more environmentally friendly alternatives. As this trend continues, our oil and gas companies will come under greater scrutiny. They will find themselves under huge environmental and social pressure to move faster and further towards carbon emission cuts. In other words, today demand for oil and gas is declining because of the global pandemic, but future declines will be because of advancement in climate action and a transition to clean energy.
Survival for the oil and gas companies is not only about adapting to low oil prices, but also to a low-carbon future. The European Union vowed to reduce net greenhouse gas emissions by 55% by 2030. Most importantly, 64% of European Union members aim to achieve climate neutrality by 2050 and are relying largely on renewable electricity to reach this goal.
Middle East countries too are aware of what is happening around them and are working to implement renewable energy policies to reduce carbon emissions.
Clean up later can be costly: creating a plan for actionable change
The strategic response of a successful transition should balance affordable energy goals with environmental sustainability. By understanding the successful examples of carbon mitigation and adaptation taken by other countries around the world, we should realize that the challenge in reducing greenhouse gas house emissions is not a lack of options, but it is figuring out which one is best for our region.
Involvement of the oil sector
It's naive to think that we don’t need oil and gas resources. Despite global ambitions for a carbon-neutral economy, I believe that energy transition cannot succeed without the help of oil and gas companies and vice versa. The oil industry will remain essential and continue to wield influence in the local and global economy for many years, but we need them to start taking responsibility for their carbon footprint.
For an oil-dependent economy like the Kurdistan Region, actions to combat climate change will falter without a fair energy transition in the oil sector. A balanced energy transition approach should be adopted by oil and gas companies so they can remain in the market while contributing to combating climate change.
The BI Carbon Transition Score helps companies define emission reduction goals and steps to get there. Diversification through investment in different types of renewable energy projects and technology development, such as carbon capture and storage and hydrogen fuel cells, would also help companies reduce their carbon footprint, garner international recognition for their efforts, and eventually gain access to funds.
Involvement of non-oil sectors
Each of the non-oil sectors in the Kurdistan Region is influenced by the physical aspects of climate change and a combination of political, economic, and social actors, requiring energy transition policies that are specific to their context. Therefore, creating positive feedback loops for greater climate action in the government, industry, and society is necessary. At the same time, we need researchers to collect information and data on rising temperatures and decreasing annual rainfall, as well as defining sectors that are influenced by the physical aspects of climate change. This will lead to a better understanding of climate change issues and how to prevent or respond to them.
The Kurdistan Region already has in place renewable initiatives such as hydropower, solar, and wind turbines, though, with the exception of hydropower, they are not yet on a significant scale. The concern is that the regulations that are needed to achieve renewable energy targets do not exist in detail. We need to develop, adopt, and diffuse innovative technologies and renewable energy projects with technical and regulatory implementation. Small scale projects should also be encouraged, like installing rooftop solar panels on homes and businesses.
Public engagement is essential
Despite a knowledge gap and financial constraints, we need strong support from our local communities to get involved in the energy transition and increase their dependence on renewables. There should be education and awareness campaigns to show people how much energy they consume and how to reduce their carbon footprint.
Last but not least, the government needs to support talented youth who are promoting action on climate change and engage with them in the decision-making and implementation of an energy transition.
Investment in clean technology and divestment from fossil fuels should be topics of everyday conversations in the world and Kurdistan Region to build a better future that is more sustainable, clean, and safe.
Prsha Abubakr Othman is an Energy Engineering graduate from the American University of Iraq–Sulaimani (AUIS). She is a founder and president of the AUIS Society of Petroleum Engineers and is an alumnus of a US Department of State leadership exchange programme.
The views expressed in this article are those of the author and do not necessarily reflect the position of Rudaw.
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