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Ridiculous to think we can stop fossil fuel production immediately: CEO

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Global energy is dominated by fossil fuels. Companies continue to find and develop new oil and gas resources at various locations.

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LONDON — The CEO of Standard CharteredBelieves it is “ridiculous” and naive to believe that fossil fuel production can immediately be halted with no consequences. He also stated that, while this might be beneficial for the environment, there would be other adverse effects.  

Comment made during an interview with CNBC’s Geoff CutmoreBill Winters, at London’s City Week Forum on Monday acknowledged that most people would support what he described as a “just transition.”

“Those are two really important words … just means fair, it also means implementable,” he said. “And transition means transition — it means it takes some time.”

Winters stated that the idea of turning off fossil fuels today is a naive and absurd notion. First, it is unlikely to occur, and second, it would cause a lot of disruption.”

It would be good for climate change, Winters went on to state, but “bad for wars, revolutions and human life because you’d have … havoc.” He argued that the “ultimate option of divestment” must be eliminated from consideration.

Winters comments are made at a moment when the phrase “just transition” is becoming more common in discussion related to climate change and energy.

This topic is complex and has been used in many ways. Greenpeace, an environmental group, is one example. has described it as “moving to a more sustainable economy in a way that’s fair to everyone — including people working in polluting industries.”

CNBC Pro has more information about clean energy

Standard Chartered, a major bank that has a presence on 59 countries worldwide is listed in London as well as Hong Kong. Standard Chartered has drawn up plans to achieve net zero carbon emissions through its financing activities by the end of the century.

Standard Chartered estimates that the total amount is approximately $2.5 billion. on and off balance sheet net exposure to the oil and gas industry was just over $20.65 billion in 2021.

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It is a daunting task to make any meaningful changes in our planet’s energy mix.

Companies continue to find and develop new oil and gas resources around the globe.

It will take a lot of money to make the transition from a fossil-based economy to one that is based on renewable energy and low carbon technologies.

These changes will have a profound impact on billions’ lives, and require huge amounts of money.

Winters for his part stated “we need to transition” but suggested ways that this might be done.

He said, “How can you balance this?” “What’s the … best way to get from point A to point B while ensuring that you’re bringing as many of the emitters of the world along with you?”  

“Putting a system in which people just check-out” was futile, he stated. He then explained his view of reality.

“In many of the markets, in emerging markets that Standard Chartered serves, if we tell them that … one, we’re about to screw you and [two] you’re going to have to pay for it well, they’re going to say fine … we’re not going to be part of that system.”

Winters claimed that it was pointless. “Rather, we … need to bring them along in the most constructive way — oil companies are part of that.”

He stated that the fossil fuel producers are some of the largest funders for both technology improvements and protection of existing carbon sinks.

“Why would we not allow them to redeploy some of their shareholder capital — and in fact, a lot of their shareholder capital — into the things that can make a big difference? That I would be a supporter of at all times.

A big debate

The comments of Winters will cause concern among climate activists and other campaign groups. pushing for an abrupt end to the fossil fuel era.

The International Energy Agency and other high-profile agencies are beginning to address how fossil fuels can be used in the future.

The Paris-based group stated that in 2021 there would be no investment in fossil fuel supply projects and no final investments decisions for unabated new coal plants.

In addition to the IEA’s most recent report, the Intergovernmental Panel of Climate Change (UN) has released its latest report. weighed in on the subject of fossil fuels.

The IPCC released a statement accompanying the publication: “Limiting global warming will require major shifts in the energy industry.”

The IPCC stated that this would include a significant reduction in fossil fuel consumption, extensive electrification and improved energy efficiency. It will also allow for the use of other fuels such as hydrogen.

Antonio Guterres, U.N. Secretary-General, made no concessions in his comments on the report.

He said that climate activists can sometimes be portrayed as “dangerous radicals”. The countries who increase their production of fossil-fuels are considered to be the most dangerous radicals.

Guterres declared, “Investing on new fossil fuels infrastructures are moral and economic madness.” 

“Such investments will soon be stranded assets — a blot on the landscape and a blight on investment portfolios.”

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