Winning the climate battle with renewable energies
COP 26, which has just ended in Glasgow, reminded us, in an imperious way, that we emit too much CO2 globally for what our planet can support, i.e. 34 million tonnes in 2018 according to the World Bank, c ie 4 million more (+12%) in 10 years. With regard to the current commitments of States, global warming would be 2.7 degrees in the 21st century, far from the objective of 1.5 degrees considered as the acceptable limit for our ecosystems.
Energy is a major issue. We are not yet producing enough carbon-free electricity in the right proportions to eventually replace coal, oil and gas, which were responsible for 63% of global electricity production in 2019. However, the ecological transformation will result in a growing demand for electricity since many needs (car, heating, etc.) will now be covered by electrical energy.
Hesitation about nuclear power in Brussels
While the European Commission is still reluctant to include nuclear in the taxonomy of decarbonized energies, renewable energies are also facing difficulties in their development that a pragmatic and differentiated approach could perhaps overcome.
European regulation of the energy market should be adapted to the different types of energy to avoid distorting markets that have become more mature, or even disappear in the long term. Solar energy and wind energy are now reaching a level of development and a sufficient number of players on the European market to commit the European Commission to review certain rules such as their public funding. This would also make it possible to keep only the truly competitive players on the market.
Hydrogen market still in its infancy
The hydrogen market is still in its infancy, is based on many constraints and generates a lot of scepticism. To be really interesting, hydrogen must be produced by carbon-free energy, with nuclear, solar or wind power, otherwise it loses its “green” attractiveness. It takes a lot of this energy to do the electrolysis that separates the hydrogen from the oxygen in the water. It must be consumed in nearby facilities, for heavy industry or mass transport, or be injected into an existing gas network. The facilities needed to produce hydrogen could initially benefit from regulation aimed at promoting, simplifying and financing this mode of production, which is highly capital-intensive. Current discussions to connect intermittent production sources to the electrical network, which would make it possible to use excess energy during production and to supply energy when this production is insufficient, are part of such a framework. of regulation. France has announced that it wants to invest 7.2 billion euros by 2030 in hydrogen. Once the installation is mature, this regulation could be adapted to the evolution of the market, or even disappear.
Managing Intermittency
The storage of renewable energies also remains a stumbling block in their development. Great progress has been made. But they remain insufficient to manage intermittency, whether it be climatic conditions or the opposition between daytime production and nighttime consumption.
Environmental awareness is growing strongly among younger generations. It has also become central for international investors who prefer to invest in projects oriented towards sustainable development and now analyze their portfolio in terms of ESG criteria. The director of the American fund Third Point, Daniel Loeb, has announced his intention to enter the capital of Royal Dutch Shell to obtain a separation between the activities of hydrocarbons and those of renewable energies. The Dutch pension fund ABP has announced its withdrawal from investments in fossil fuels. Major oil and gas companies have dramatically reduced their fossil fuel investments from over $800 billion in 2014 to $400 billion today. Companies focused on the production of renewable energies, such as Acciona Energia in Spain, go so far as to create the position of “financial and sustainable development director”, linking the two objectives which have become as much a priority as each other.
The COP 26 meeting will probably not change our climate trajectory in the short term, even if the commitments of States are always stronger and more marked. It is not speeches that will accelerate the ecological transformation, but actions of investors, companies and a mature and buoyant market for renewable energies.
Laurence Daziano4 mins
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