By Giulia Petroni

 

TotalEnergies SE on Tuesday said that investments in new oil-and-gas developments will still be needed at least until the mid 2030s in order to meet demand and avoid prices spikes, even in a below 2-degrees-Celsius scenario.

The French major said that, in the short term, the trajectory of global energy demand isn't going in the right direction to meet climate goals due to the economic recovery after Covid-19 restrictions and current market disruptions.

Yet, current high energy prices have put energy efficiency at the top of the energy policy agenda in many OECD countries, it said. "The current crisis should be an opportunity to increase and anchor energy saving and efficiency measures as they are the fundamental basis of any scenario to reach the Paris agreement objectives."

TotalEnergies said the transition to cleaner forms of energy will require a step up in spending, with investment in low-carbon power having to double to 2030 to reach $1.5 trillion a year.

Still, while renewables experience a higher and faster penetration as the main drivers of the decarbonization of the energy mix, natural gas maintains a core role in ensuring power and pushing out coal, the company said. "Gas will become greener over time and its growth is accompanied by carbon capture and methane emissions control solutions," it said.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

September 27, 2022 09:27 ET (13:27 GMT)

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