“Energy transition and global security” in the speech in Book of Facts 2024 Of Claudio DescalziCEO of Eni, author of the contribution present in the volume now in its 34th edition.
Descalzi’s intervention
“Two vital needs overlap in this historical phase: making the transition and creating a secure energy structure at a global level. Both go hand in hand with the need to preserve the competitiveness of the economic fabric which, over time, especially in Europe, has reducing.
We are also faced with new strategic dependencies related to materials in the transition supply chain; the inflationary dynamics, already observed with the Russian invasion of Ukraine and, in general, a scenario characterized by growing conflicts and tensions, translate into threats to the stability of our system, still largely based on fossil fuels.
The transition is irreversible, not sudden and expensive: huge investments are needed to diversify the current structure, enriching it with sources and solutions. To be successful, it must be driven by the market, not by a priori targets and regulatory frameworks.
It is, in fact, intrinsically a technological transition and, therefore, also a great opportunity for companies. But opportunities entail risks, especially when the issue is “anticipating the future”, promoting, in a pioneering way, the research and development of innovative solutions.
This is what happened to Eni, which acted ahead of the curve, converting existing assets for new businesses, preserving jobs, in a context that was neither regulated nor incentivised: this is the case of biorefineries and depleted deposits to be used for CO2 storage.
Key elements of this path are to make the transition economically profitable, on the one hand, and, on the other, to consider existing technological options not only for their effectiveness in terms of emissions reduction, but also for the times and costs associated with their implementation and the creation of the relevant question. Companies are called to rethink their business models to attract private capital and collaborate synergistically to accelerate the development of technologies that could be the true game changer of the future.
Furthermore, a topic of great attention, in order to create a new secure energy structure, are relations between countries: strengthened energy cooperation between Europe and Africa, for example, can be a strategic lever for the stability and prosperity of the two continents, and at the same time, enable fruitful collaboration to achieve objectives in the fight against climate change and energy security.
However, we must be clear about the inequalities that Africa faces, with millions of people in poverty, dramatic health and education conditions, without access to electricity: if we know how to rewrite the list of priorities, putting the needs of this continent at the top – and not the energy security of others – then we will find a fair solution to the complementarity of Africa and Europe.”