'What is needed is an organic, incremental energy transition'

'We would like to present a different, independent voice. The energy transition is desperately needed, but it is currently losing some of its support. Conversations about sustainability quickly end up in polarizing discussions. Especially the way Hannah Ritchie looks at the issue objectively, from her scientific angle, makes her vision interesting and relevant,' say Managing Partner Ronald van Rijn and Senior Consultant Corporate Finance Rogier Tigchelaar. The train is unstoppable. The floods and other effects of climate change make it difficult even for deniers. And if not, there is an economic necessity. In time, if the transition is too slow, we will see oil and gas prices go through the roof. Then there is also a financial rationale for the energy transition, both observe.

Step-by-step transition

In her book, Ritchie discusses tackling the climate problem and the transition from fossil to renewable energy sources by zooming out. She uses figures to show how much and how quickly results have been achieved in the climate issue. But also gives examples of tipping points in policy. Calamities are often the trigger for sweeping government action, Ritchie argues. She uses the heavy air pollution in Beijing (the calamity) as an example, which the government addressed with drastic measures (policy) with the arrival of the Olympics (image). 'Change comes mainly from policy. People mainly look at their wallets. It is usually a financial incentive, such as the high gas bill at the beginning of the war in Ukraine, that makes people move. Only a limited group wants change out of idealism. Sometimes solutions lie further in the future, Ritchie shows. 'With an aging population, in time you automatically get a reduction in CO2 emissions!

Oil is an important parameter as a raw material of plastics in the energy and materials transition. 'It is important to recycle plastics and drive the materials transition by adopting the right policies so that recyclers can compete with 'virgin' plastics from oil,' she said. In her book, Richie discusses plastic pollution, and how it enters the food chain in the form of microplastics. Possibly because we are not directly affected, the sense of urgency is not great enough. Which is why the materials transition is stalling/ according to Tigchelaar. The pricing of oil plays a negative role in this, says Van Rijn: "At the moment the price of oil is so low that plastics from China are very cheap. Recycling companies therefore have a hard time selling recycled plastic. The earnings model is breaking down as a result:' Only the reason for drastic measures by the government' with policy can this be solved, they believe.

Calamities are often the trigger for drastic measures by the government

'The right policies (fossil pricing) and investments are necessary to achieve the transition. What is needed is a step-by-step transition from the old to the new energy supply, with governments, businesses and stakeholders jointly looking for solutions that are both economically feasible and ecologically sound. The challenge is to get the discussion going and together look for ways to organically shift from fossil to renewable energy'

Partner on strategic questions

JBR advises companies facing major challenges in the Energy and Materials Transition sector. Its expertise includes corporate finance, restructuring and strategic issues. 'We are called in for the questions that keep people awake, says Ronald van. Rhine. 'We help solve the problems along the way. We do that from the angle of strategy development and creating options for cooperation. What activities do you need to be involved with tomorrow to achieve continuity and make money?'

Source: Elsevier Weekly

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