17 INSIGHT | Focus On THE KEY TO SUCCEED “Europe, which is the best in the world from this point of view, has reduced emissions from 1990 to 2020 by 20%,” he said. “And now in another 30 years, we need to reach minus 55%. That’s a further 35% in 30 years. So the speed of reduction must be at least two times the speed of reduction that we had in the past. This is very challenging, because of the required deep change in the energy system, but also the society and the economic system at large.” Fortunately, the lower cost of renewable energy is one of the enabling and accelerating factors that can help us achieve the energy transition, he said. Technological innovation, digital transformation and green finance are the three tools that can help companies and governments meet the challenge. Regarding technology, there are five main sectors that could attract $2 trillion of capital investment by 2025. They are concentrated in electrification of industry and transport, agriculture, the power grid, hydrogen production, and carbon capture. Digital transformation is key because it enables the changes that need to happen in all sectors and technologies, from energy efficiency to digitalized energy networks to forest protection and advanced monitoring of livestock. Finance is the most important of these three enablers right now, he said. “The good news from Glasgow is that it’s clear that the financial sector is ready to move very important resources into this direction,” he pointed out. “The goal is twofold: redirect investment to focus on renewables and other low carbon sources, and increase green investment to what we will need in the next 10 years in order to achieve the 2030 and 2050 targets.” At COP26, it was clear that public policy will not be among the enabling factors to achieving the goal of limiting global warming to 1.5C per year, said Carraro. Developed and developing nations are still far apart, and all countries in general have problems in setting and approving short term goals. More will be needed from companies if governments are not up to the task. “We need more than what we decided in Glasgow,” he said in conclusion. “We must rely on technological change, and company strategies. The contribution of companies is very important to get to zero emissions in 2050-2060 in the main world countries, e.g. the G20s, which is what we need to keep temperature increase below at least 2C by the end of the century.” PRYSMIAN GROUP EDITORIAL STAFF
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