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Cop26, Chicco Testa: "Investments in fossil fuels to be reduced but not eliminated"

INTERVIEW WITH CHICCO TESTA, President of Fise-Assoambiente – “The results of Italy's energy policies are good, but the country is still behind on renewables and energy efficiency. It takes an extra effort." “Be careful not to discourage investments in fossil fuels: otherwise you risk blackouts and higher bills” – “More funds are needed for the circular economy”

Cop26, Chicco Testa: "Investments in fossil fuels to be reduced but not eliminated"

“In the long term, it is on the strategy of renewables that we need to focus,” he said Mario Draghi at the end of last Friday's European Council. Italy has made this choice and is working on it not without difficulty. About 70 billion of the PNRR are destined to redesign the country in key terms green without neglecting any sector. How much politics is focused on energy issues and fossil fuels is also demonstrated by the debate in recent weeks on the increase in bills and the effects of the economic recovery. But Italy together with Great Britain is also among the organizers of the next climate summit in Glasgow which begins on 31 October. In that forum these issues will be at the center of a new global confrontation which should lead to more incisive proposals. But will the ecological transition set by the Draghi government really achieve all the objectives indicated? And are the difficulties he encounters all surmountable?
We talked about it with Chicco Testa, long-time manager and President of the Association of Environmental Services Companies

President Testa, in a few days COP26 will start in Glasgow. What should we expect and how does Italy get there?

“Italy, also thanks to the economic crisis that began in 2008, presents a good result in terms of energy policies, having exceeded the objectives for 2020. However, we are behind the set objectives, both for renewable sources and for energy efficiency by 2030. An additional effort is therefore needed, which can in part be supported thanks to the funds provided for by the PNRR for the energy transition, with investments to be completed by 2026. In fact, important incentives are envisaged (ecobonus 110%) , funds for the efficiency of public buildings and funds for renewable sources”.

You recently signaled the fall in investment in the search for fossil fuels. The European Environment Agency has complained, however, of little public investment in renewables. How to explain these two opposing theses?

“Energy policy is a very delicate subject, to be handled with care. Investors look at public policies, expectations and the concrete choices of governments. While advocating for decarbonisation goals, one must be careful not to discourage too much investment in fossil fuels, which we badly need (albeit decreasingly) for many years to come. Otherwise, there is a risk of black-outs and increases in bills due to lack of supply". 

There are those who argue that it must be done.

“It's something we can't afford. We have supported renewable sources and energy efficiency with a gigantic mass of public resources in recent years, paid for by the bills of Italian citizens and businesses, with system charges. I don't think that's the problem." 

However, the Italian ecological transition suffers from the obstacle of bureaucracy. Beyond the good intentions of reform, isn't it that the government has dared a little too much on its objectives?

“The objectives that developed countries have set for themselves are linked to the macro objective of limiting the increase in temperature to 1,5/2 degrees. They are objectively challenging and difficult goals, but if we are to fight global warming, we have to go in that direction”. 

But the authorization profiles are a cage….

“Of course, these results cannot be obtained in Italy without covering hectares of land with wind turbines (even at sea) and photovoltaic panels, promoting geothermal energy and the combustion of waste and biomass, and building hydroelectric plants. All things that generate local conflicts, in a country where the superintendences interpret the 'protection of the landscape' in an ideological and unreasonable way. Then there's the bureaucracy, with authorizations that take years to see the light. Let's hope that the simplification measures desired by the Draghi government will work".

In the field there are dozens of companies committed to redesigning the country system. Eni and Enel, to say, make alliances and update the strategic plans towards renewables. Are they really doing enough for the new scenarios? 

“Large groups and multinationals are moving well and coherently with the objectives. But the challenge of the energy transition concerns all businesses and all citizens”.

Despite the difficulties, we are moving towards a circular economy system. You preside over the Association of Environmental Services Companies (Fise-Assoambiente). Something is moving on the waste front. Minister Cingolani has released the first funds for new plants. Are they enough to get out of the emergency? 

“The tenders of the PNRR for the circular economy envisage 2,1 billion euros. An important but insufficient figure. We have estimated a need for investment in the urban and special waste sector of around 10/15 billion euros. The measures envisaged by Minister Cingolani's tenders support public facilities and private initiatives with non-repayable loans".

instead...

“We would have preferred to use the resources to define market economic instruments open to all operators without differences: recycling certificates, eco-tax reform, tax incentives for recycled products. Together with the simplification of authorisations, the economic instruments best allow companies to finance investments with their own resources". 

But how much do companies in the sector invest?

“Public and private companies invest around 500 million in the circular economy every year”.  

The repercussions of all this will have on the territories, but the local authorities feel excluded from some energy and environmental choices made in the centre. What can be done ?

“Part of the tenders of the PNRR on the circular economy are intended for Municipalities and Area Authorities. The Municipalities were then exempted by the simplification decrees from many obligations regarding the Ecobonus 110%. To achieve the objectives, projects on an industrial scale are needed, and the municipal dimension is not always the right one”.

It is the problem of the times defined for carrying out the works.

“Yes, the resources of the PNRR must be spent by 2026 and it is therefore understandable that the Draghi government has highly centralized the spending mechanisms, in order to meet these deadlines”. 

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