The head of Rosneft estimates electrification of transportation in a number of cities around the world at USD 0.5 trillion

The complete electrification of transportation in a number of the world's megacities may exceed more than 0.5 trillion dollars, said Igor Sechin, Chief Executive Officer of Rosneft, on the sidelines of the 27th St. Petersburg International Economic Forum.

In his report at the Energy Panel, the head of the Company noted, “implementation of technologies within the energy transition requires huge investments”.

“In particular, the cost of transition to electric vehicles in large megacities is estimated in tens of billions of dollars. For example, we estimate that electrification of transportation in such cities as Sao Paulo, Mumbai, New York, London, Johannesburg and Shanghai could cost more than half a trillion dollars”, Igor Sechin told.

The Rosneft head also noted that on the way to achieving carbon neutrality by 2030 it will be necessary to increase production of copper by almost 1.5 times, nickel and cobalt by 2 times and lithium by more than 4 times . This could further increase pressure on land, water and resources in developing countries, where most of the mineral deposits critical to the green transition are located.

Igor Sechin separately mentioned copper, the consumption of which, excluding the green agenda, will exceed 900 million tons by 2050. “Furthermore, another 500 million tons will be needed to electrify the global vehicle fleet (apart from other energy transition targets). Thus, cumulative copper consumption by 2050 could double the amount of copper produced in all of human history. It is also 60% more than all recoverable reserves available today”, he said.

“I believe that at the first stage the emissions issue can and should be addressed by improving efficiency of energy production, rather than displacing traditional energy sources with alternative ones”, the head of the Company summarized.

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Rosneft
June 8, 2024