Engie : Promoting a global carbon pricing structure

ENGIE Chairman Gérard Mestrallet has long advocated the introduction of a generalized global carbon pricing structure. Appointed by the French government to chair the Carbon Pricing Committee, he spoke recently at a conference of the Carbon Pricing Leadership Coalition in the fourth session of the Business Dialogue.

Why do we need to introduce carbon pricing?

Gérard Mestrallet has been promoting this concept for several years now: if we are to combat global warming effectively, we have to put a price on carbon. Putting an economic value on greenhouse gas emissions will encourage companies to invest in clean energy options. Without such a pricing structure, it will be difficult to contain global warming below 2°C, as required by the Paris climate agreement.

Gérard Mestrallet was appointed to chair a Carbon Pricing Committee alongside former government minister Pascal Canfin and economist Alain Grandjean. Their mission is to pave the way for the general introduction of carbon pricing.

Working towards worldwide carbon pricing

The Committee recently published an interim report focusing on Europe. Its central finding is incontrovertible: the European pricing system is too patchy to enable a reallocation of investment in favor of low-carbon technologies. It therefore recommends the introduction of a Europe-wide price corridor that would set a minimum and maximum price for carbon emissions and send a clear signal to the business community.

Gérard Mestrallet also contributes to alliances designed to bring political decision-makers together with leaders to address the issues involved in introducing an effective carbon pricing structure:

• the Business Dialogue, which brings together negotiators representing around 30 countries and international business leaders from all industry sectors to discuss actions to be implemented in the wake of COP21

The ENGIE commitment to a low-carbon future

Behind the personal commitment of Gérard Mestrallet, there is the corporate commitment of the ENGIE Group. The group is implementing practical provisions to reduce its own CO emissions:

• Already more than 20% lower than the global average, the rate of emissions per kWh generated by ENGIE power generating plants worldwide will be reduced by a further 20% between now and 2020 (as compared with 2012).

• The Group will develop no new coal-fired power generating projects, and will accelerate expansion of its portfolio of renewables capacity.

• ENGIE will maintain its commitment to research and development, and to rolling out energy efficiency solutions for its customers, with 100,000 employees dedicated to doing just that.