Climate Change a new Challenge for Energy Business

1. Climate Change a new Challenge for Energy Business FLOW ENERGY S.A Teresa Fokianou

2. Climate change is happening now • Global climate change is the key concern of our century, with a serious impact in our social and economic growth. • A global problem that requires a global action • Kyoto Protocol’s emission targets expire in 2012. • EU emergency target: global warming must be limited to 2οC above the pre-industrial level. • The target is technically feasible and economically affordable if major emitters act urgently.

3. Source: EU Action against climate change (edition 2008)

4. A new Energy challenge • Energy demand still rising rapidly, especially in developing economies. • Fossil fuels will have significant role to supply energy for the next decades. • Emissions rising to much. • Development and deployment of new technologies is essential.

5. What makes this challenge tougher • High prices haven’t stopped the energy demand to grow rapidly, especially in developing economies. • We are running short of our traditional energy resources. • Easily accessible oil and natural gas will probably no longer keep up with demand in the coming decade. • Emissions rising to much. • The world will have no other choice but use energy more efficiently and increase its use to alternative energy sources.

6. What are the options • No single energy source or technology can both meet demand and reduce CO2 emissions. • Balance between climate and energy security requires portfolio of solutions. • Energy efficiency must play a more important role. • There will be an increase in alternative energy solutions. • Carbon capture and storage (ccs) can be very important part of the solution. • Nuclear energy, Renewable energies, like solar, wind, bio-fuels, important technological possibilities. • The development of unconventional resources will contribute to energy security and supply. • New technologies will enable coal be burnt more cleanly and efficiently in the future. • High investments are needed for the transformation.

7. Source: EU Action against climate change (edition 2008)

8. What oil companies can do • Develop reserves and resources both in mature basins and new frontiers; • Reduce their own emissions wherever they operate; • Promote energy efficiency to consumers; • Promote a better understanding of climate change mechanisms and use their specialist knowledge of the energy worlds; • Promote alternate and renewable energies; • Develop and demonstrate efficient and reliable solutions to capture and sequestrate CO2; • Make appropriate investments.

9. Call for action • A global agreement is important for the business community for a coherent ,stable and efficient policy framework to guide its long term investments decision. • Governments and policy makers must to create the long term market base policies to make it worthwhile to invest for a low carbon economy. • A low carbon global economy is a huge opportunity for business especially in terms of technical innovation ,which can drive economic growth and the creation of new jobs.

10. Climate Change a Challenge for Energy Business Energy Challenge requires coherent global policy action across all key sectors and along the full technology path and supply chain. This will enable innovation and investment confidence through public and private partnership that deliver sustainable low carbon fuels and renewable source, that are clean cheap and available. Thank you