According to the International Energy Agency (IEA), the energy sector relies on fossil
fuels for 80% of its energy output, which are well known for being the greatest contributors to global warming. To attain carbon neutrality and the 1.5°C by 2050 trajectory, we must reduce the global production of oil and gas by 3% and coal production by 7% per year between now and then. As well as this, there must be no new fossil fuel exploration projects from 2021 onwards.
More broadly, the stakes are even higher for ‘hard-to-abate’ sectors such as mining and metals, cement, chemicals or transport, for which the energy transition is complex due to its prohibitive cost or lack of available technologies.
As the fight against global warming becomes more and more urgent, how can a financial establishment like Natixis provide concrete support to companies and help them accelerate their energy transition?
Repsol is the market leader, specialized in the exploration, production, refinement and distribution of oil and gas, and the distribution of petrochemical products and electricity in Spain. Conscious of its environmental responsibility, the company is developing a strategy to have net zero emissions by 2050. It has also created the even more ambitious goal of reducing its carbon intensity by 15% by 2025, 28% by 2030 and 55% by 2040. It is also committed to reducing its absolute emissions and its methane emissions intensity.
David de Cáceres Nuñez, Director of Financing at Repsol, and Laurie Chesné, Co-Head of the structuring and consulting team in green and sustainable financing within the Green & Sustainable Hub at Natixis Corporate & Investment Banking, explain how Natixis is supporting the company in its energy transition.