The energy transition from and for the regions

Despite Colombia's goodwill to advance the transition, there are regions in the country that depend on the jobs and royalties generated by the mining-energy sector. These, more than an energy transition, need a labor reconversion.

Amat Zuluaga Guerra, a professor in the Geological Engineering department at the Universidad Área Andina and director of the Caribbean Energy Transition Observatory OTEC at the same university.

The energy transition has been the battle horse to face climate change, but when we analyze the importance of minerals and fossil fuels in the construction of renewable energies, the matter becomes much more complex than simply stopping the use of oil and gas to power solar panels and wind turbines.

The central axis of the energy transition (although little is said about it) is the availability of strategic minerals (which are finite) for the manufacture of renewable technologies. However, to meet the Net-Zero objectives, the production of these minerals must multiply exponentially, at a rate at which a large part of the existing global reserves would be depleted in less than a decade. Not only are minerals indispensable, but fossil fuels are also necessary, as they appear throughout the production chain of the new energy sources and are required in significant quantities. There is no solar panel in the world made with the energy from other solar panels; all come from coal or gas.

At this point, it is crucial to understand that not everything that glitters is gold, and much less, renewable. Clean energy projects like solar or wind require tons of minerals and materials that, paradoxically, result from intensive mining activity. Responsible mining and hydrocarbon extraction, not only operationally but also economically and strategically in social investments, can allow for the development of regions, pay taxes, royalties, generate quality jobs, and provide the income needed for labor reconversion.

Let’s think about the transition from the regions

Colombia has wanted, with very good intentions, to be a powerhouse of renewable energies; however, it has openly disregarded the role that mining and hydrocarbons play in its territory. A position that is completely contrary to reality, but even more so, putting at risk the regions that economically depend on these activities.

To give an example, the departments of Meta and Casanare depend on more than 40% of their GDP from the hydrocarbon sector. This is an industry that has faced constant challenges from the current government. Even more concerning, in a short-term closure scenario, we could only project the worst economic and poverty crisis that these regions could face, this time, in the name of the energy transition. That is to say, they do not need an energy transition per se, as is thought from the desks in the capital; rather, they need productive diversification that includes new industries, with equal or greater job opportunities that are well-paid, and that also generates the same royalties for social investment.

The decision not to depend on fossil fuels in a large percentage and to produce our own energy from solar or wind sources can be carried out through public policy, but it will not impact the improvement or reduction of the country's emissions. Industrializing the country to produce renewable energy means, although paradoxical, generating greater energy consumption primarily from fossil sources and, therefore, more emissions into the atmosphere. However, it is an interesting measure if we think about the economic development of communities and the improvement of quality of life. We should, then, find deeper solutions to our main problem, which is emissions, to capture, store, and/or reuse them. This without risking the economy of the regions.

For the above outline, I generally sketch how we could contribute to the energy transition and, even more so, the truly necessary productive diversification but leveraged on a Government that is based on data and results:

1. Encourage the exploration and exploitation of strategic minerals, oil, and gas as a shield of energy autonomy and that positions us as a key player in geopolitics and the global market.
2. Transform the regions productively and labor-wise, gradually and well-planned to ensure that the transition is truly fair.
3. Focus the reindustrialization of the country on uniting mining and hydrocarbon products for the manufacturing of technological end-use products that generate higher profitability, create job opportunities, better wages, and energy security.

Achieving this is not an easy task, but we must start. Clearly, all of this also implies increasing energy consumption, and for that, oil and gas production is key. In this way, we generate development for the regions and the country, and we could be the exporters of renewable energies in Latin America, even gaining markets like Africa. This requires a lot of investment and a reasonable time, but it is a way out so that in a period of 20 years when the reserves of our mining-energy resources are depleted, we can use the new industry to process any other type of product, advance technologically, and, above all, have strong producing regions, with solid productive chains and technological capacity that allows us to migrate more easily to the new challenges posed by the changing world.