Europe can be the catalyst for a fundamental culture shift to slow climate change – but we have to act now, says James McCallum, co-founder and CEO of Scottish diversified energy services group Senergy.
According to McCallum, Europe is often viewed by other economies as a once great influential force that has run out of steam, burdened by red tape and bureaucracy. Yet in this time of concern over climate change, Europe is stepping to the fore.
“But the targets are tough, and for our political and business leaders to fulfil the climate mission for Europe, I believe we must be far more innovative than we have been to date,” McCallum told Energy ahead of Offshore Europe 2009.
“We need to focus on practical, implementable solutions. We should encourage open and collaborative thinking – the best way of transcending the traditional boundaries between business, technology, politics and ideals.
“Our efforts must not be parochial. We have to operate on an international stage – Europe alone cannot effect the scale of change necessary to slow climate change.
“And finally, but most importantly, we must ensure diversity of energy supply.”
The last mentioned fact is something that the British Government is perhaps only now starting to understand; moreover, former energy minister Malcolm Wicks has called for a more interventionist approach by Government.
McCallum says the above themes lie at the heart of Senergy, but that they need to be at the heart of every business operating in the energy sector.
“We must diversify from our hydrocarbon-based comfort zone and embrace the world’s need for alternative and renewable energy.”
He reckons progress has been made on many levels, but that there are fundamental areas which still need to be addressed.
“Firstly, Europe needs more effective deployment of public and private investment to sweep aside some of the barriers to energy innovation. We need to adopt the same mindset used when it comes to justifying investment in defence and aerospace.
“The same scale and pace of action that would accompany a military threat needs to be taken when it comes to the very credible threat of climate change.
“Europe has already allocated significant public money to support and encourage energy innovation, but investment remains hindered by the complex rules and detailed requirements which qualify access to this money and control how it is spent.
“Secondly, there needs to be faster, bolder and more innovative policy reforms to relieve the tension between the drive for economic growth and the dream of deep-rooted sustainability.
“Reforms must be enacted on multiple levels – the EU Emissions Trading Scheme is a step in the right direction, but other reforms need to be implemented quickly to ensure a more effective valuation of non-renewable resources. Greater market innovation is required to ensure that companies formed on the premise of making profits from helping consumers buy less can thrive.”
McCallum notes that information has always been the catalyst for revolution and that the sustainability revolution is no different. Individuals need to be empowered to make better choices.
“If people are better informed about the impact of their behaviour and given palatable alternatives, a shift in culture change can happen. We need products and services we can trust to be clean and sustainable, not just cleverly hyped with smart consumer branding.”
Finally, he says sustainability must be at the heart of capitalism.
“Europe’s policymakers, institutional investors and companies must lead the change in driving sustainability into all aspects of commerce, including the acceleration of a market whereby those companies that deliver top-quartile performance in relation to sustainability trade at premium while those who don’t will be subject to discounting.
“Europe can, and must, be the catalyst for these fundamental changes. The pace needs to quicken, and Europe’s leaders must constantly strive to bring the rest of the world with them on the journey that will shape the planet for future generations.”
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