Energy transition: Innovation, action and investments needed

As the COP26 climate summit gets underway in Glasgow, there have been many new policy declarations and national commitments coming from governments to address the urgent challenge of reducing emissions. It is encouraging to see both developed and developing countries putting in place new ambitions and frameworks that move the world closer to the goals of the Paris Agreement. Amid all the press conferences and speeches, you may have missed another announcement coming out of Scotland this week. On Monday, Equinor unveiled a new design concept that will enable industrial-scale commercial floating offshore wind. Our new “Wind Semi” solution has several features that make it particularly suited for harsh waters. The concept also includes several design elements that maximise the opportunities for partnership with the Scottish supply chain including increased dependability, a simpler, more robust design, and a profile that means it can be assembled in a modular fashion at most industrialised ports.

The energy transition will require both international and national-level policy commitments and private sector investment and innovation to succeed. At Equinor, we are applying our competence, capital and courage to de-risk and scale up the technologies and low-carbon value chains of the future. And it is not just floating offshore wind. From Norway to New York and Aberdeen to Argentina, we are investing in a portfolio of new low-carbon and zero-carbon projects and business models including carbon capture and storage (CCS), hydrogen, wind and solar.

Direction and targets are important, but we also need concrete action to move the world forward in fighting climate change – today and for the future. In fact, we have an ambition of allocating 50% of capital investments to renewables and low carbon solutions by 2030. Between now and then, we expect to invest more than 50 billion US dollars into renewables and low carbon solutions.

Our broad energy strategy – based on an optimised oil and gas portfolio, rapid growth in renewables and the development of new low carbon value chains – is one that we believe will ensure long-term competitiveness during a period of profound changes in the energy systems as society moves towards net zero. It is a strategy that informs the work of Equinor’s 22,000 employees who perform every day to provide the world with reliable energy, while reducing emissions and creating value for the societies where we operate.

Governments and businesses alike will have to balance different perspectives as we move into a low carbon world. I hope we see some real progress at the talks at COP26. But talk needs to be followed by action. We in Equinor will continue to engage with governments and society while working every day on the transformation of the energy system that the world needs.