# REUTERS IMPACT-‘Please put a price on carbon’, says Europe’s biggest utility Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-05 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Put a Price on Carbon to Save the Planet: Enel CEO Urges Meta Description: Learn why Enel CEO Francesco Starace is urging countries to put a price on carbon to reduce emissions and combat climate change at COP26. URL: https://financedigest.com/reuters-impact-please-put-a-price-on-carbon-says-europes-biggest-utilityhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-10-05t130053z1lynxmpeh940portroptp4global-climate-enel-1736837716536-compressed.jpg) By Jon Harman and Stephen Jewkes (Reuters) – Countries need to put a price on carbon to help the world cut greenhouse gas emissions and limit climate warming to agreed targets, the head of Europe’s biggest utility said on Tuesday. “Please put a price on carbon,” Enel Chief Executive Francesco Starace said in an interview at the Reuters Impact conference. Starace’s comments come less than four weeks before the U.N. COP26 climate [talks in Scotland that aim](https://www.financedigest.com/maserati-aims-at-driving-margins-higher-before-any-spin-off-talk.html "Maserati aims at driving margins higher before any spin-off talk") to secure bolder action from the nearly 200 countries that signed the 2015 Paris Agreement to try to limit global warming to 1.5 Celsius. He said the [world was on track to overshoot 1.5C at the moment and it was important to see if larger economies](https://www.financedigest.com/biggest-economy-in-the-world.html "Biggest Economy in the World"), with their new and more focused efforts, would engage with the target at the COP26 talks, which start on Oct. 31. “Put the price on carbon in your own territory … and then [worry about how that carbon price](https://www.financedigest.com/oil-prices-rise-as-china-eases-covid-curbs-u-s-storm-fuels-supply-worries.html "Oil prices rise as China eases COVID curbs, U.S. storm fuels supply worries") relates to the other carbon prices,” Starace said. “But price it – because if you start with that then this will finally adjust.” Carbon [pricing is seen](https://www.financedigest.com/wall-street-seen-opening-higher-but-u-s-recession-priced-in.html "Wall Street seen opening higher but U.S. recession priced in") by many as key to encouraging emissions reductions and helping new, low-carbon technologies compete with established, more-polluting sources of energy. A carbon [cost can come in the form of a tax](https://www.financedigest.com/uks-sunak-under-fire-over-cost-of-living-defends-his-tax-cut-plans.html "UK’s Sunak, under fire over cost of living, defends his tax cut plans"), via an emissions trading system (ETS), or so-called cap-and-trade schemes, but there has been much debate over the best system https://reut.rs/3DbDrzp to adopt. A report by the World Bank in May said only a fifth of the world’s emissions were covered by a carbon price – and most of the [prices were too low to achieve only a 2C increase](https://www.financedigest.com/syngenta-4q-profit-falls-as-raw-material-prices-increase.html "Syngenta 4Q profit falls as raw material prices increase") in global temperatures, let alone 1.5C. ‘SYSTEM DOESN’T WORK’ On Saturday, U.S. [Climate Envoy John Kerry said the world’s major economies must “stretch to do more” at the summit](https://www.financedigest.com/eu-to-urge-big-polluters-to-toughen-climate-pledges-by-cop27-summit-draft.html "EU to urge big polluters to toughen climate pledges by COP27 summit – draft") in Glasgow, Scotland. Ahead of COP26, global business leaders and politicians are taking part in the Reuters Impact [conference to discuss efforts to mitigate climate](https://www.financedigest.com/one-minute-to-midnight-says-johnson-as-climate-conference-opens.html "“One minute to midnight” says Johnson as climate conference opens") change and drive sustainable growth. Enel, one of the world’s [biggest green energy https://reut.rs/3a4X281 firms](https://www.financedigest.com/uk-firms-plan-biggest-pay-rises-since-2012-to-fill-staff-gaps.html "UK firms plan biggest pay rises since 2012 to fill staff gaps"), aims to cut its carbon emissions by 80% by 2030, boosting its green capacity to 120 gigawatts (GW) from some 50 GW at the end June. Starace said the [energy transition was a front-loaded process that required companies](https://www.financedigest.com/luc-remont-proposed-as-new-boss-of-french-energy-company-edf.html "Luc Remont proposed as new boss of French energy company EDF") to invest now for benefits in the long term. But he said consumers still worked on a very short-term horizon, with governments tending to take a hands-off [approach and trusting markets](https://www.financedigest.com/the-berries-market-to-be-driven-by-the-non-stoical-approach.html "The Berries Market To Be Driven By The Non-Stoical Approach") to adjust. “That can’t be any more the case. We need to [bring consumers](https://www.financedigest.com/incoming-starbucks-boss-to-bring-consumer-insight-to-coffee-culture.html "Incoming Starbucks boss to bring consumer insight to coffee culture") into the story,” he said. Starace said [consumers needed to see the benefits of low-cost energy now by using long-term pricing](https://www.financedigest.com/france-leans-on-retailers-to-help-consumers-cope-with-food-prices.html "France leans on retailers to help consumers cope with food prices") deals. He said [governments and banks needed to adjust to this long-term horizon and implement the right regulations and policies so the market could adapt properly – and avoid the wild](https://www.financedigest.com/reining-in-the-wild-horse-governing-an-idea.html "Reining in the Wild Horse: Governing an idea") swings in energy prices that have plagued markets in recent weeks. The fluctuations and surprises we observe [today are exactly a demonstration of this – they are short-term](https://www.financedigest.com/in-planning-for-today-dont-lose-sight-of-tomorrow-avoiding-short-termism.html "In planning for today, don’t lose sight of tomorrow – avoiding short-termism") convulsions of a system that doesn’t work anymore. To watch the Reuters Impact conference please register here https://reutersevents.com/events/impact/ (Reporting by Jon Harman and Stephen Jewkes; Editing by David Clarke) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---