We only invest in low-carbon tech that can be scaled up by 2030: OGCI CI
SUMMARY
Some industries today cannot be decarbonised with renewables, OGCI CI CEO Pratima Rangarajan said.
By Joseph MurphyPOSTED IN:
The Oil and Gas Climate Initiative Climate Investment (OGCI CI) only invests in low-carbon technologies that can be sufficiently scaled up by the end of this decade, in order to tackle climate change before global temperatures rise beyond Paris targets, CEO Pratima Rangarajan said at the Financial Times' Energy Transition Summit on October 17.
"We only invest in technologies that can be scaled out by 2030. That's our principle," Rangarajan said. "Because by the time we reach 2050, two degrees, three degrees, four degrees of warming have already come and gone."
While emerging technologies are important to consider, the main focus should remain on technology "delivery," she said.
"We are not scaling up enough with the current technology," she said, adding that 85% of venture capital in decarbonisation is going towards renewable power and electric vehicles.
"But 85% of emissions are coming from heavy industry and other sources. There are some [emission] areas that cannot be solved with solar or wind," she said.
For example, cement, iron and steel production require extremely high temperatures, and today there is no alternative to hydrocarbons to fuel these processes, she said
"We need concerted investment not just in venture capital or with equity, but also in the adoption curves. We need the investment from operating companies to test and scale these new technologies. There is huge potential but we need to look beyond renewables," she said.
