On repurposing fossil fuel subsidy as energy transition finance

There is a shift already in terms of the money that to go from subsidizing fossil fuel to renewables. This is essential. But there a lot of things that are not going to be easy to do. From the social point of view is the best time to do it [when the oil price is low] but this will not cause social disruption. Now it is not a question of price, it is question of demand. This the right moment.

On governments willingness to reforms energy subsidies

“Honestly, it is difficult to say. My understanding is that many politicians believe this is a good moment to do this. This crisis is an economic crisis, but not like 2008 where it was a financial crisis becoming an economic one. There is a tremendous amount of liquidity now and the cost of buying is very low. We have to create a physical space for providing for policy changes on subsidies and tax. It is a political choice.

On global renewables growth

What we have seen for the last year is the continuation of a trend where the installed capacity of renewables has outpaced fossil-based energy and this is the ninth year in two, except one, where [this has been the case]. The real reason for this extraordinary path [of growth] is the market.

On the impact of sustained low crude prices on renewables

We don’t estimate [low oil price] will have negative impact on renewables as such. But naturally renewables will be impacted by Covid-19 and this will come the supply chain and factories closing – but these are not oil-related. And these impacts will much less important than the impacts in other sectors. There are entire sectors that risk being struck out by this situation.

On why government should be backing the energy transition

[Post-Covid-19] governments will be looking for a system that will be more resilient to ‘shocks’ coming from any reason. Renewables is the way to go, there is no doubt. Even if oil [prices climb] higher, investment in oil is no longer a reasonable choice. The trend [toward renewables] will not be affected by the [oil] price but by the force renewables have, in market terms and social terms for a more economical and resilient energy system in a sustainable world.

On the future of green hydrogen

Green hydrogen is the best way to add a fuel but also a storage [medium] and that ensure a global clean-energy system. It will very useful also for long-distance shipping, aviation, heavy industry, the sectors that are more difficult to decarbonise.

On carbon capture and storage

CCS [carbon capture and storage] will be limited to certain regions where it is economically significantly [such as the Persian Gulf]. If you go to a bank and ask for money for a CCS plant no-one will give it to you because it is not economical [compared to new-build renewables replacing fossil fuel capacity]. CCS is not a solution, it is a complement to existing solutions. Why would you [build CCS] when renewables are already much cheaper.

On the 'Just Transition'

The most effective way of providing employment at this time when millions are losing their jobs is to go for a sector that can do this. Renewables jobs are now at 11 million from four million only a few years ago. Women are better represented in renewables than other industries. GDP [gross domestic product] is growing better in countries that a building more wind and solar. There many socio-economic reasons for affording the choice to accelerate our way on a path toward clean-energy system. A world is not sustainable if it not just.

'Now is the moment to build a clean and just world with renewables': La Camera