The Intergovernmental Panel on Climate Change (IPCC) was categorical: global warming must be limited to 1.5° by 2100. In this scenario, the energy transition to a low-carbon economy is one of the most effective contributions the business sector can make to complying with Brazil's nationally determined contributions (NDC) to the Paris Agreement.
The theme was the focus of the energy transition thematic block organized by UNFCCC, held on the third day of the Latin American and Caribbean Week on Climate Change. Three companies associated with CEBDS, Siemens, Santander and Itaú, participated in the debates alongside experts from Latin America and the Caribbean.
In the first session on Deep decarbonization of the energy system, Coppe-URFJ professor Suzana Kahn highlighted that it is necessary not only to decarbonize the system, but to completely transform the way we behave and offer energy.
“Decarbonization is important for our region. But to achieve our renewable potential we need investment and innovation. It is essential to create development pathways and science is crucial to reduce the costs of this transition,” he said.
Juan Pedro Searle, Head of the Climate Change Unit at Ministry of Energy of Chile, He stressed that the transition must consider the social impact on people who work in the highest-emitting sectors, such as coal-fired power plants.
Henrique Paiva, director of sustainability and government relations at Siemens, said that companies understand their role in the energy transition. “The Brazilian private sector understands the importance of a low-carbon economy. The question is what is best for the future of the planet and our company. And our answer is: to be here in seventy years. That is why we have the goal of being carbon neutral by 2030.”
The second session of the thematic block addressed financing for the energy transition. Isabela Aroeira, leader of squad Itaú's climate finance department, highlighted that “the financial sector already understands that in order to have a future we must look at the transition as an opportunity”.
“We have a list of sectors that are sensitive to climate change, but not to penalize them, but rather to help them in this transition. And we also seek to encourage those sectors that are more resilient. The TCFD provides good guidance for us to do this analysis,” he said.
Santander’s Executive Director of Project Finance, Giovanni Fernandes, argued that the country is on the right track. “Brazil has enormous potential based on a consistent framework for renewable energy. We need to figure out how to make sure the market sees green bonds as advantageous. If you ask an investor in Europe if they would pay more for a green bond, the answer will be no. We need everyone’s commitment.”
