A just and inclusive transition
A zero emissions system in the second half of the current century, as foreseen by the Paris Agreement, will require significant technological, social and economic transformations. For this reason, the transition must also be just, promoting the creation of sustainable and decent jobs. Therefore the climate action must be accompanied by the promotion of a just and inclusive transition and the creation of sustainable and decent jobs.
In July 2019, Enel’s Chief Executive Officer signed the “just transition” commitment promoted by the United Nations, which commits the Company to guaranteeing that the new jobs will be fair, decent and inclusive.
In Italy Enel manages Futur-e, a project for the requalification of 23 power plants, with the goal of finding new solutions and methods of use based on the criteria of social, environmental and economic sustainability. This activity is in close collaboration with local administrations, companies and communities to develop energy reconversion and the circular economy, while promoting innovation. In 2019 the project was also extended to the thermoelectric plants in Spain for which decommissioning by the end of 2020 has been announced.
Enel and the global climate change context
Enel welcomes the various climate policies and regulatory measures announced and implemented in 2019 in the various geographical areas where it operates, in particular in Europe. For this reason, the company considers the Green New Deal presented by the European Commission as a great opportunity for accelerating the European Union’s path towards a decarbonized and sustainable economy, which in turn will bring business opportunities that are in line with the Group’s strategy and sustainable business model.
During 2019, Enel also actively participated in public consultations, meetings, conferences, workshops and events concerning the four measures published as part of the Clean Energy Package. It welcomes the recognition of energy efficiency as a key pillar towards the transmission to low carbon emissions energy and contributes towards establishing a reliable system for increasing the renewables and meeting the challenges of the future electric energy markets in an efficient manner in terms of costs and promoting cooperation among Member States. The fixed objectives will stimulate Europe’s industrial competitiveness, boost renewable energies, create new jobs, reduce energy bills, contribute towards facing energy poverty and improve air quality.
Enel is also working together with the governments and stakeholders in Europe, Latin America and Africa to develop an energy transition roadmap with an open approach, sharing policy design and technical knowledge to contribute towards the implementation of the Paris Agreement.
Regarding carbon pricing, Enel believes that the “cap and trade” system is the most efficient method for reducing emissions, especially in industrialised economies. The definition of an absolute emissions objective guarantees the efficiency in reaching the environmental objective, whereas the signal of the price fixed by the market guarantees economic efficiency and minimisation of costs. In general, Enel believes that the institution of a “cap and trade” system that is based on a solid regulatory framework guarantees the certainty of long-term climatic objectives and permits market mechanisms to determine prices that are coherent with the macroeconomic cycles and with market conditions. Instead, environmental taxation works well for countries with a weaker institutional framework and for sectors with distributed sources of emissions.
Action platforms and partnerships for facing climate change
The Group plays an active role in various sector associations and organisations with the objective of promoting topics regarding energy transition on a national and global level. Some of the international associations with which Enel collaborated actively in 2019 are listed below:
- Three Percent Club
- Climate Finance Leadership Initiative (CFLI)
- Global Sustainable Electricity Partnership (GSEP)
- Wind Europe
- Solar Power Europe
- E.DSO for Smart Grids
- European Association for Storage of Energy (EASE)
- International Emissions Trading Association (IETA)