The main challenges in the energy transition are regulation and finance, said Ivan Kukhnin, an advisory partner for strategy, risk, and operations at Deloitte Netherlands, Report informs.
He shared his insights at the event titled "From Aspiration to Reality: Regional and Global Impact in Renewable Energy," organized by NEQSOL Holding as part of COP29.
Kukhnin emphasized that the energy transition is no longer just a global trend but has become a necessity for many large oil and gas companies. "One of our main challenges is setting targets, and collecting data to meet these targets is quite difficult. In Europe, mandatory reporting on water usage and other environmental responsibilities will come into force in the coming years, and companies will need to provide this information accurately," he stated.
The Deloitte expert also touched upon the problems related to financing energy projects. "We observe a demand for long-term investments, for example, solar and wind energy projects require more than 10 years. This is not so attractive for financial institutions because the payback period is long," he explained.
The official added that incentives and regulations implemented by governments will help accelerate this transition. "If governments apply the right regulations and incentives, it will be possible to reach a turning point in the green energy transition for both society and business," Kukhnin concluded.