2024-01-09 19:36:22
Ana Botínthe president of Banco Santander, has asked through an opinion column published in the ‘Financial Times’ that companies reduce their energy needs.
The president of Banco Santander considers that economic growth depends, at least in part, on “affordable and reliable” energy. Forecasts indicate that energy demand will increase by up to a third between now and 2050, to maintain an economy “twice as large” and 2 billion more people.
Ana Botín points out that the debate so far has revolved around changes in energy supply, especially regarding the transition from fossil fuels to renewable sources, something that “must be done while guaranteeing that energy continues to be affordable and safe for everyone.
In contrast, the area of energy consumption has received “much less attention”, an aspect where “everyone (individuals, companies and governments alike) can act.” Ana Botín emphasizes that reducing energy demand means “doing more with less.”
The president of Santander Bank mentions figures from the International Energy Agency (IEA), which predicts that the world will need to improve energy intensity by more than 4% annually between 2020 and 2030, and almost 3% annually thereafter, to reach ‘net zero’ ‘ emissions in 2050. Botín recalls that “Last year, we only achieved 1.3%.”
Furthermore, he points out that “there is still much to do”, both at the level of companies and by governments. In this sense, the week of January 15 to 19, the Davos Forum will be held in Switzerland, where, among other points, how to reduce energy demand will be discussed.
Ana Botín describes it as “necessary” to find ways to save energy, such as using artificial intelligence (AI) in heating, ventilation and air conditioning in offices, which could cut energy consumption by 25%.
Secondly, Botín proposes focusing on energy efficiency, which means using less energy to perform the same task or produce the same product. In this sense, he points to the modernization of buildings as an example, since it can bring savings of 45% in energy consumption.
The president of Banco Santander also asks to focus on collaborations between companies, which “Means that different companies along the value chain work together to drive change in the energy system in general.”
Ana Botín proposes as an example that heat be recovered from industrial plants, which could cut energy consumption by around 25%, as is already happening with the use of waste heat from sulfuric acid production in Sweden.
The president of Banco Santander believes that measures like these by companies would bring with them a “clear commercial benefit”, and that “This will help companies reduce the general use of energy, without reducing production, reducing costs and increasing profitability and competitiveness.”
In Botín’s opinion, these measures can reduce energy demand by up to a third without reducing production, so that by 2030 two trillion dollars per year would be saved.
However, the president of Banco Santander believes that this opportunity “is not being taken advantage of”, and asks governments to develop national energy transition plans, which act on both the demand and supply of energy.
Ana Botín considers that «They have already begun to walk this path. At COP28 [celebrada a finales de 2023 en Emiratos Árabes Unidos]more than 120 countries committed to doubling the rate of energy efficiency improvement by 2030. Now we must turn promises into actions.
The president of Banco Santander concludes that the joint work of companies and governments is crucial to develop these plans, and asks that companies be supported to improve their energy consumption, investigate best practices, and build public-private partnerships.
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