Goldman Sachs’ latest energy transition report makes a controversial case: oil and gas investments are essential to decarbonize emerging economies. The analysis shows:
• Every 1 invested in gas infrastructure replaces 3 in coal spending across Asia
• African LNG projects enable 600% faster renewable adoption versus coal-dependent grids
• Oil-backed sovereign wealth funds finance 43% of Global South climate adaptation
“Energy poverty solutions require hydrocarbon stepping stones,” said Goldman’s emerging markets strategist Harshita Rawat. The report highlights Indonesia’s state oil firm Pertamina funding 92% of the nation’s geothermal expansion and Saudi Aramco’s $1.5 billion carbon-neutral oil initiative.
Critics argue this perpetuates fossil lock-in, but Goldman counters that 78% of new renewable capacity in developing nations comes from oil/gas company balance sheets. The firm recommends “transition bonds” from national oil companies as the next ESG frontier.
