The CEO's blog, 15/11/2021

A reflection on COP26 

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Dear Energizers, 

 

 

COP26 set the pathway for the “best last chance to keep 1.5 °C alive” and attracted greater global attention than any previous climate change conference, highlighting the urgency with which words and ideas need to be turned into actions. History will eventually determine the success – or otherwise – of the conference, but as business leaders, we need to ask ourselves how the developments in Glasgow impact upon our companies…and keep pushing ourselves to do better; not only to implement current best practice, but to continually develop solutions and improve our actions.

 

‘Support the Conditions for a Just Transition’

 

For Energean, we have long advocated the need for a ‘just transition’ — an energy transition that does not discriminate or leave any nation behind. I therefore greatly welcome that the subject was a key topic of conversation at COP26 and salute the signatories of the Just Transition Declaration, supporting the required conditions needed for the sustainable achievement of net zero.

 

‘Phase Down Coal with Gas’

 

COP26 also saw the securement of a 190-strong coalition to phase down coal power. I am particularly proud of the role Energean is and will play in displacing coal-powered power plants in Israel with gas.

 

Our focus on gas across the East Mediterranean will also help keep power prices at affordable levels, particularly in Israel and Egypt. Affordable, accessible power is key to a developing world and one of the most important of the UN’s sustainable development goals. The emergence of this year’s energy crisis in Europe makes this a particularly pertinent topic. It’s clear to me that the slashing of gas investment leads to a heavy near-term reliance on overseas imports, which, as we’ve seen this year, can lead to consumers paying the price by suffering from high electricity prices. Governments need to ensure that they are building from a strong base in which to sustainably transition from.

 

‘Reduce Methane In Addition to Carbon Emissions’

 

The Global Methane Pledge signed at COP26 commits its signatories to reduce global methane emissions by at least 30% by 2030, as recognition increases of the disproportionate effect methane has on heating the planet; considerably more damaging than the equivalent amount of CO2.

 

At Energean, we already have methane leak detection campaigns in Italy and will roll-out similar campaigns across all of our operations in 2022. . We are also going to reduce methane emissions by updating older technology and equipment in Italy and Egypt.

Our FPSO, the Energean Power, being built for our flagship Karish gas project in Israel, will pass through all necessary checks and tests to assure no methane leakages and we will implement formally scheduled methane leak detection and repair plans from the outset of operations.

 

Today, I pledge that Energean will be in a position to physically record methane emissions from all of its operated sites by the end of 2022, allowing us to set a clear reduction target supported by a proper plan.

 

Energean was the first E&P to set a net zero carbon target in 2019 and has a clear goal to accelerate this as far as is possible. To date, we have made great strides in recording, reporting, and reducing our Scope 1 and 2 carbon emissions and are well on track to reduce our carbon intensity by 89% by 2025 versus our base year of 2019.

Conclusion

 

COP26 was about Governments making global commitments to combat climate change; however, to achieve the 1.5 °C target we all need to take responsibility – every company and every individual has to continually strive to improve their response to climate change. That is the true lesson of COP26 and I will ensure that Energean continues to play its role.