Natural Gas for Sustainable Development
COP29 Blue Zone, Baku
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Excellencies,
Ladies and Gentlemen,
At the outset, I would like to express my appreciation to the Republic of Azerbaijan for co-hosting this ministerial panel in its pavilion, to the distinguished panelists for accepting our invitation, and to all of you for being with us today.
I also wish to congratulate Azerbaijan for a well-organised and well-attended COP 29. It has already led to a positive outcome with the agreement on the standards for article 6.4, including for carbon removal technologies such as CCUS.
To set the scene for today’s discussion, I would like to make five observations.
One. As we gather at COP29, it is only natural that climate change takes center stage. Yet, from our perspective, any meaningful dialogue on climate must also embrace the three pillars of sustainable development: economic growth, social progress, and environmental protection. In 2015, the international community adopted two landmark agreements: the Paris Agreement and the UN 2030 Agenda for Sustainable Development, with its 17 Sustainable Development Goals. Both agreements are equally important.
Furthermore, the past few years have underscored that energy is indeed the lifeblood of modern economies, bringing energy security to the forefront of policy-making. This highlights the necessity of balancing security, affordability, and sustainability in energy transformations or evolutions.
Two. The global energy system is vast and complex, having evolved and optimized over more than two centuries. It delivers the energy equivalent of 3,500 barrels of oil every second, in the blink of an eye. Yet, despite this scale, 2.3 billion people still lack access to clean cooking fuels, and 700 million are without reliable electricity. Transforming such an extensive system will require considerable time and enormous financial resources. This task is made even more challenging by the reality that global energy demand will only continue to grow.
According to GECF forecasts, primary energy demand is set to expand by 20% by 2050, driven by rising population, expanding urbanization, growing economy, and the pursuit of improved living standards.
Three. This raises a central question: how can we meet growing energy needs while safeguarding our environment? There is no one-size-fits-all model; energy pathways must be tailored to each nation's unique circumstances, capacities, and priorities, with international cooperation as a vital enabler. However, a compelling answer lies in natural gas. As the least carbon-intensive hydrocarbon, natural gas provides a cleaner, affordable, versatile, and reliable energy source.
Natural gas supports sustainable development through multiple avenues: replacing coal in power generation, transitioning from wood and charcoal to LPG for cooking and heating, stabilizing renewable-based power systems, offering low-cost blue hydrogen to decarbonize hard-to-abate industries, and serving as an essential feedstock for chemicals and fertilizers, being thus at the heart of food security.
Together, these contributions affirm natural gas’s indispensable role in a sustainable energy future.
The GECF forecasts a 34% increase in global natural gas demand by 2050. While natural gas may serve as a transitional fuel in Europe, where demand is projected to decline due to policy shifts and deindustrialization, it remains a destination fuel across other world regions—especially in developing countries where demand continues to grow well after 2050.
Four. The GECF member countries have heavily invested in the development of their natural gas resources to satisfy world growing energy needs, taking geological and economic risks, as this industry is capital intensive with long lead times and payback period.
Security of demand is critical. A stable and predictable demand over the long term enables producers to plan their operations and investments effectively. This security also entails continued access to markets and financing, as well as economic, regulatory, trade and contractual stability.
In this connection, the Algiers Declaration adopted by the 7th GECF Summit of Heads of State and Government, expressed their rejection of unilateral economic restrictions, trade distortive measures, and politically driven interventions in price discovery and risk management functions of markets.
Five. My last point is about technology. While natural gas is already a cleaner energy, technological advancements are further reducing its environmental impact. Carbon capture, utilization, and storage—or CCUS—along with gas flaring reduction and methane abatement, make it possible to minimize emissions throughout its lifecycle. Recognizing the importance of technological collaboration, GECF member countries have established the Gas Research Institute (GRI) in Algiers.
Inaugurated on February of this year, the GRI aims to provide a framework for scientific and technological cooperation, facilitating the exchange of information, innovations, best practices, and training among member countries.
Once again, thank you for honoring us with your presence today.
Thank you very much.