"But the environmental clubs are still pitting these investments against fossil fuel investments. You might wonder how fair that is," says Van Cleef. ING's Hieminga adds that we are still 85 percent dependent on fossil fuels worldwide. "We all don't like that, but that's the reality. And it is also the reality that we will continue to depend on this for some time," the economist said.
Demand for fossil energy increases
In the process, the demand for fossil energy continues to increase. "You have to keep investing in the current fossil system if you want to keep the energy system afloat. If you don't, we will have a problem with supply and affordability. The current crisis caused by Russia shows that," says the ING economist.
Therefore, he says, it is logical that a company like Shell is still making substantial investments in the extraction of oil and gas. "I understand the desire of environmental organizations to stop it completely immediately, but that is not realistic."
The economists further point out that Shell is investing billions in wind farms, solar fields, storage technologies and CO2 capture and storage infrastructure. "Investing in the energy transition is hugely capital intensive . Large companies like Shell have that capital and that money is badly needed for these investments," said energy expert Hieminga.
©WNL
