Clean Energy for Clean Future

From Malawi, where drought affects agricultural crops more and more every year, to Russia, where higher temperatures cause Siberia to thaw little by little, or from Italy, where olive crops are compromised in Puglia, to Panama, where naval traffic on the Canal with the same name is affected by prolonged and increasingly acute drought, one phenomenon is evident: the global rise in temperature makes local economies rethink their strategies in order to survive.

With a few exceptions, countries are now aware that climate change is a reality and that each and every one of them must contribute if not to combatting it (something already deemed impossible by some experts), at least to keeping it under control. This is why, in the second half of September this year, the United Nations organized the New York Summit on climate change. The declared objective: to bring countries back to the same table and to persuade them to confirm or increase their commitment to reducing carbon emissions.

What emerged from this summit that overwhelmed New York (speaking about reducing carbon emissions, it would have been appropriate to measure their level in the large American city during the event) is that there are still many steps that need to be taken for it to be possible to even talk of a coherence and coordination of state policies, at a global level.

However, since it seems that time does not flow in favor of the environment, while we are waiting for these policies, whose task is it to accelerate the fight against climate change?

One answer could be: both the private sector and each individual can make concerted efforts to stop carbon emissions, together with NGOs and activists. But is this effort sufficient to achieve the goal of "zero emissions" or to limit to less than 2 degrees Celsius the rate of global warming, as compared to the pre-industrial era, as provided for by the Paris Agreement? Or to limit it to 1.5 degrees Celsius, for the more ambitious?

These are the questions that the latest edition of #EnelFocusOn, the global event series organized by Enel tried to answer, which brings into discussion relevant topics for the energy transition that the world is going through. Held in New York City, precisely during the UN Summit, the 17th edition focused on the new role of electrification in creating a zero-emission future and in gaining access to clean energy for all, and had as guests Rachel Kyte, CEO and Special Representative of the UN General Secretariat, the Sustainable Energy for All Initiative, Francesco Starace, CEO and General Manager of Enel, Francesco La Camera, General Manager of IRENA, and a number of representatives of civil society and influencers from all over the world.

Electrification is, largely, the solution for decarbonization

“We need more companies like Enel to convince those involved that it is worth it to invest (in renewable energy - editor's note) and build our future.”

– Rachel Kyte, CEO and Special Representative of the UN General Secretariat, the Sustainable Energy for All Initiative

The call to the private environment came in response to the slowness shown by some governments in coming out of an outdated model, but which they are very familiar with, and moving on to a new, decentralized model, in which access to clean and sustainable energy is universal. This goal, formulated by UN member countries in 2015, is complemented by combatting climate change by reducing carbon emissions and bringing global economies and the planet into balance.

The above objective can be achieved with the help of electricity, as a means of decarbonising not only the energy field, but also other related fields, such as transport. "The really good news is that a whole host of revolutions are about to happen and we can use them to make access to clean energy easier for everyone," Kyte said. In her opinion, three factors are determining factors for this to happen:

1. Renewable energy should be distributed in a decentralized manner

2. The energy mix should be streamlined - with the help of technology

3. More political leadership - countries should come up with concrete plans, not deliver speeches, they should embrace innovation, and enable large-scale energy transition

Utopia or reality?

"While energy demand worldwide is growing, the demand for electricity is growing twice as fast," Francesco Starace said. What causes this, in his opinion?

1. Technology brings electricity closer to our lives and makes renewable energy more and more available

2. The average price of electricity tends to decrease more and more, and electricity itself is less and less dependent on volatile commodities such as gas, oil or coal

3. The electricity chain is much easier to digitize, compared to that of hydrocarbons

The major benefit of electricity, however, is the impact it has on the planet, by the fact that it can be decarbonized and can, in turn, lead to chain decarbonization of other economic sectors (transport, industry).

What is stopping us from implementing the plans that make the decarbonization of electricity a large part of the solution to global warming problems?

“We have concrete evidence that financial resources exist and are waiting to be invested in this change. We know with certainty that there are financial communities that need tools to direct their money towards the energy transition. Let's see what the resources are and share the benefits of this transition. In this endeavour, we need the courage and the desire to get involved, because we know that the end result can be positive.”

– Francesco Starace, CEO and General Manager Enel

Firm long-term commitments

"Climate change can be fought today. The technologies and solutions are there, the interest of the financial community to go in this direction is also growing. At this moment, we only need the desire and clarity of thought necessary to accelerate the transition to a sustainable and decarbonised economy”, stated Francesco Starace.

Enel's efforts in the field of sustainability were recognized by the decision of the UN Global Compact to reconfirm the group as a LEAD company, a recognition that Enel has held since 2011. The UN Global Compact is the main initiative in the field of corporate sustainability to promote the achievement of sustainability objectives. This year, discussions focused, among other aspects, on how corporations working with capital market institutions can contribute, through funding, to achieving the Sustainable Development Goals. To meet this challenge, the Enel group has recently launched the first bond program associated with the Sustainable Development Goals (SDGs) in the world, using a new capital markets approach that links the sustainable performance of the company with securities, thus expanding the scale of sustainable financing and showing bond holders the impact of their investments on the overall strategy of the company.

In early September, as a preamble to the UN Summit, in line with the full decarbonization target set by Enel for 2050, the company is committed to reducing its direct greenhouse gas emissions per kWh by 70% until 2030, with 2017 as a starting point. The commitment was established following the April 2019 update of the Science Based Target initiative (SBT) [1]. Also in September, Enel was confirmed in the Dow Jones Sustainability World Index (DJSI World) for the 16th consecutive year. This sustainability index acknowledged Enel's commitment to a zero-emission energy model.

[1] The Science-Based Targets Initiative (SBT) is an initiative of the CDP, the UN Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), which gives companies a way to identify what resources and how much time they need to reduce their greenhouse gas emissions in order to reduce the rising global temperatures.

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