Francesco Starace, CEO of Enel, Europe's largest utility, has emphasized the need for countries to establish a carbon price as a crucial step in reducing greenhouse gas (GHG) emissions and achieving climate targets. According to Starace, countries should implement carbon pricing within their own territories and then consider how it aligns with other carbon prices. He believes that pricing carbon is a fundamental starting point that will lead to necessary adjustments in various sectors.
Carbon pricing is widely regarded as a key mechanism for incentivizing emissions reductions and promoting the competitiveness of low-carbon technologies against more polluting energy sources. This sentiment is echoed by US Climate Envoy John Kerry, who has called for major economies to push for greater efforts in combating climate change.
Enel has set ambitious goals to cut its carbon emissions by 80% by 2030 while increasing its green capacity by 140% to reach 120GW. Starace highlights that the energy transition necessitates immediate investments for long-term benefits. However, he observes that consumers tend to have short-term perspectives, while governments often adopt a hands-off approach. To bridge this gap, Starace suggests that consumers should reap the benefits of low-cost energy through long-term pricing deals. He also calls for governments and banks to adopt longer-term time horizons by implementing regulations and policies that facilitate market adaptation without significant price fluctuations.
