The Carbon Pricing Leadership Coalition held, on April 15 in Washington, its first High-Level Assembly to build on the momentum of the Paris agreement. Its objective: promoting the effectiveness of carbon pricing policies to halt global warming. Member of the Coalition, ENGIE participated in this High-Level Assembly.
“We must see carbon pricing as the opportunity to drive the change we all need,” Gérard Mestrallet, the CEO of ENGIE.
Personally involved in pushing for carbon pricing signals, Gérard Mestrallet was an early supporter of the Carbon Pricing Leadership Coalition.
Since last year, he is also co-leading the International Business Dialogues roundtables; a high level dialogue between top private and public leaders on climate change issues. The commitment of the CEO of ENGIE reflects the ambition of the Group to effectively drive a low-carbon transition at an international level. ENGIE was one of the first companies to sign the Declaration launched by the World Bank in June 2014 for the generalisation of carbon pricing.
Held on April 15 in Washington during the World Bank-International Monetary Fund Spring Meetings, the High-Level Assembly of the Carbon Pricing Leadership Coalition recalled the need for global public/private action to achieve climate change stabilisation.
Launched at the Paris climate talks, the Carbon Pricing Leadership Coalition is a global initiative that brings together more than 20 governments along with more than 90 businesses, among which ENGIE. Its goal is mainly to support and promote evidence of successful carbon pricing mechanisms.
The High-Level Assembly of the Coalition is taking the role of monitoring global progress in implementing carbon pricing systems. More specifically, it has agreed on two main objectives:
Carbon pricing is the price paid to cover the environmental impact of greenhouse gas emissions. Putting a price on carbon is setting a key tool to drive the energy transition: it implies making carbonised solutions more expensive and less attractive, while generating financial flows to help promoting carbon free solutions. Carbon pricing can thus drive transition, innovation and new business models. Today, 40 governments and 23 cities are putting a price on carbon, covering about 12% of annual global greenhouse gas emissions. Besides, more than 450 companies all over the world report using a voluntary, internal price on carbon in their business plans(1).
ENGIE is one of them. Indeed, the Group is including a carbon price in its investment plans. It has set internal pricing scenarios reflecting the risks it faces related to greenhouse gas emissions impacts. In this context, the Group decided not to develop new investments in coal. ENGIE is setting itself concrete aims to reduce its CO2-specific emissions by 10% by 2020. In 2014, the Group issued the largest ever Green Bond for a private company, worth some €2.5 billion, to finance renewable and energy efficient projects.
In 2015, the Group has met its target of increasing the share of renewable energies in its electricity generation capacity by half.
(1) Carbon Pricing: Building on the Momentum of the Paris Agreement, World Bank