French Foreign Ministry Calls Out to Gas Industry
In his appearance at the World Gas Conference in Paris, on behalf of French Foreign Minister Laurent Fabius, Christian Masset, French Deputy Foreign Minister, directly addressed the natural gas industry community in connection with the United Nations Conference on Climate Change set for the end of 2015. He stated: “The success of COP 21 depends largely on you.”
Companies, he said, often placed the onus upon governments for taking decisions regarding climate change, but given the magnitude of the challenge both sides must do more.
He explained, “The post carbon economy entails teamwork between states and companies. By December, decision makers will have to take clear decisions, define the path we shall all take and make a formal commitment by signing a universal agreement – it's our responsibility and we're fully aware of this.”
The private sector's responsibility, he said, consists in joining the Paris Alliance for the Climate, like joining the initiatives and coordination structures of enterprises in favor of sustainable development. “We mean business caring for climate,” he said.
Corporates publishing commitments to reduce carbon emissions, he added, is another effort, while a long-term goal is states placing themselves on paths towards carbon neutrality. “It would be particularly useful for the main economic sectors to do likewise, by proposing sectoral roadmaps running up to 2050,” he commented.
Regarding innovation, he said, “We need you to undertake to develop and disseminate innovative, low-carbon technologies. The automotive sector is a good example of a sector that has evolved a lot in this direction, and sector by sector we must build together a carbon neutral economy – this entails major coalitions for innovation.”
Mr. Masset opined that climate change must be a key element in the decision-making process for investments, a hot topic for the natural gas industry. “Investors are increasingly beginning to talk about the carbon risk and climate risk, which is important when deciding on investment – that's good news, and we have to move faster,” he said, adding that upper management needs to take climate change into account in their investment choices.
He recognized the trend of integrating such elements into company strategy, as well as disclosure of enterprises' emissions data and exposure to climate risks. Investment funds are paying attention to such criteria.
To the gas sector, he said: “In many regions you are a part of the solution, in the short and medium-term. Gas is the least polluting fossil fuel.”
In that context, he mentioned the US and unconventional gas outcompeting coal, helping to reduce GHG emissions, along with state and federal initiatives to develop renewable energies and improve energy efficiency. At the same time, he said the common goal which we must espouse is to commit to a deep-seated decarbonization of our economies, reducing the share of fossil fuel.
“Big companies within the energy sector are all developing activities in the area of clean, renewable energies,” he recognized. “This also involves accelerating the development of technologies to minimize emissions – particularly carbon capture storage.”
Mr. Masset noted that later this year Paris will be welcoming COP 21, in cooperation with Peru and Morocco, the UN and the other 196 parties involved in the negotiations. The question, he said, is what is to be achieved in Paris in the context of COP 21.
He answered, “What we want is, together, to build a Paris alliance for the climate, which will enable us to contain the rise in the average temperature to under 1.5-2 degrees compared with pre industrial levels – an alliance which will send out a clear signal to our fellow citizens, to our local governments and enterprise that we resolutely moving towards a transition towards a low carbon economy, while guaranteeing all equitable access to sustainable development.”
The Paris alliance, he said, has four dimensions: 1) a universal, legally binding agreement that applies to all countries, dependent on development levels, providing a clear framework for action, and rules that guarantee monitoring of commitments and regular upward revision of national objectives, 2) contributions of states – the intended nationally determined contributions (“INDCs”), according to which each country agrees to lay down objectives in terms of reducing greenhouse gas emissions by 2025, 2030 or 2050, 3) financial/technical means and capacity strengthening, according to the commitment made in Copenhagen by which $100 billion/year is mobilized for developing countries from 2020 via a “green fund,” and 4) the Paris “plan of action” designed to involve non state players, local governments, enterprises and NGOS, getting them to make commitments to support and not replace efforts made by states to reinforce the collective effort before 2020.
Mr. Masset explained the importance of the contribution to such efforts by business: “Because the goal that the international community has set itself – to limit global warming to 1.5-2 degrees C – while not unrealistic, is still very ambitious.
“We can attain this goal if, in the second half of the 21st century, we achieve what is known as carbon neutrality, the long-term goal. That means that greenhouse gas emission in the world must be considerably reduced. This implies a deep-seated change in our economic models, which have been built in the last 2 centuries on the use of fossil fuels,” he explained.
According to him, a decarbonized world can only be achieved if everyone makes an effort towards this. He stated, “We need to send out clear signals, sent out by governments, particularly in terms of carbon prices; there must also be responsible investment made by companies – we need joint technological partnerships.”
He mentioned a business dialogue that has recently been initiated on a global level, enabling fruitful discussions with the private sector that will continue up to the COP 21 conference.
France, he said, supports an initiative towards the elimination of routine gas flaring by 2030, and hopes that more companies will join that effort, whose timeline could be sped up.
“The conditions for a substantial agreement on the climate have never been brought together to this extent before, because the scientific facts and figures have never been less challenged, the political will is growing stronger,” said Mr. Masset, who noted the Sino-American agreement from November of last year.
“The two biggest emitters undertook to reduce and cap their emissions – this hardly would have been imaginable just a few years ago,” he observed. “It's an amazing piece of progress.”
Meanwhile, a growing number of governments are calling for the establishment of a carbon price. “In March, we learned for the first time in over 40 years, CO2 emissions in the energy sector remained stable in 2014, despite the fact that world economic growth increased by 3% the same year.
“It's good, but it's not sufficient,” he continued. “It's urgent to transform in-depth our economic models, and each and every one of you are indispensable players in this change – we're counting on you to make COP 21 a success,” Christian Masset said in his conclusion to delegates at the World Gas Conference.
-Drew Leifheit