Avaada Group Chairman Urges $200 Trillion Investment for Global Energy Transition.

At the 2024 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Vineet Mittal, Chairman of India’s Avaada Group, urged global leaders to step up financial and regulatory support to achieve an effective energy transition. Addressing a packed audience at the world’s largest energy summit, Mittal challenged the widely cited $35 trillion cost estimate for a full transition by 2050, suggesting that a realistic target is closer to $200 trillion.

Mittal detailed the urgent investment needed to meet global decarbonization goals, stressing that 2023’s record-high $2.8 trillion in energy investment, though impressive, remains insufficient for the scale of transformation required. He emphasized that the power sector alone must achieve a 93% emissions reduction by 2035, which will demand a tripling of renewable energy capacity to 11 terawatts by 2030 and further expansion to 31 terawatts by 2050.

He also highlighted the need for a rapid shift in the transportation sector, with all new passenger vehicles needing to be electric by 2034 and a fully electrified passenger fleet by 2046. Mittal identified green hydrogen as essential for decarbonizing industries like steel and chemicals, with production needing to increase from 94 million tons to 400 million tons by 2050.

Drawing from Avaada’s experience in renewable energy, Mittal advocated for policy frameworks similar to feed-in tariffs, which helped scale the solar industry. He called for collaboration between new clean-energy companies and established players, noting, “A sustainable future isn’t a single company’s achievement—it’s a global effort, requiring innovative partnerships and unified commitment.”

HBL