«Changing the economic model is cheaper than not doing it»

COP29 started on Monday, a summit that they already call “difficult.” Among other obstacles, the countries present in the Baku negotiations will have to set a climate financing figure (that is, the money that rich countries will have to give to less developed countries so that they adapt to climate change and can mitigate their emissions). Gonzalo Sáenz de Miera He is one of the Spanish spokespersons participating in this event organized by the UN and one of the “spearheads” of the growth of the green economy in our country.

In February of this year, he was appointed president of the Corporate Leaders Group (CLG), the main business alliance which is committed to a green economy in Europe, for a period of two years. In addition, he is the director of Climate Change and Alliances at Iberdrola and the president of the Spanish Group for Green Growth (GECV), an association made up of more than 60 companies, both large (representing 40% of the IBEX) and SMEs involved in the sustainable innovation.

—How are the feelings in Baku?

—This is a complex COP. First, because work is not being done at the pace at which it should be. And second, because all you have to do is look at the climate consequences and the global geopolitical context in which we find ourselves. But, on the other hand, those of us who support a change in the energy model are working hard. Spanish companies are here, rowing alongside giants like Apple or Amazon. If this business macro trend continues, we are facing a global revolution that is unstoppable.

—Is it true that the negotiations on climate financing have hit a wall?

—Yes, and there is a lot of fighting against that wall. Climate finance is a complicated issue, where positions between developing and developing countries are very conflicting. Not only because of the amount, but because of the sectors (public and private) and the countries that must contribute to the funds. It will be one of the most relevant topics of the COP, but I believe (I am optimistic) that it will also be one of the topics where there will be agreement.

—Even with Trump and Milei in the picture?

—I believe that the energy transition is an unstoppable process. It’s unstoppable. There are difficulties, yes, but the transition is not going to stop because climate change is not going to stop. In addition, there are other “drivers” that drive it, such as the economy. My impression is that the US will continue to support incentives to attract green industry to the US.

—Are you suggesting that the business sector moves faster than some governments?

The context is complex, because people know that we are not moving as fast as we should, but there is a global industrial revolution underway that, as I said, is unstoppable. The energy transition is not only done because of climate change, to reduce air pollution or to protect biodiversity. It is also done because it benefits the economy. Many of the renewable technological solutions are already more competitive than conventional ones. This is what has changed. 15 years ago, green was much more expensive. Currently, renewables are the most economical way to produce electricity in 95% of the planet.

—What place does DANA of Valencia occupy at the summit?

—It has had a lot of impact. People from all over the world send us hugs and many companies are showing solidarity with Spain. They have seen what can happen in an advanced country. I’m not going to play the odds, but you have to listen to the science. And science tells us that climate change is going to make extreme weather events more and more frequent and more intense.

—What lessons do they learn?

—It is being seen that it is more economical to act than not to act; that it is worth changing our economic model to avoid the consequences of maintaining the current one. I say it a lot, but every degree counts (and has a very negative impact on global GDP). We have to accelerate climate action to avoid the worst climate scenarios, but also the worst economic scenarios. This would be very good, especially for Spain. We have the best renewable resources in Europe. We will be able to have more economical energy and attract industry to our country. We can be a green engine for Europe. But, be careful, there is a real risk that Spain will lose this opportunity if we do not accelerate the process. There are already countries that are ahead of us. As a group, we are working hard to accelerate and maintain the industry in Spain.

—Sometimes the climate discourse is framed in the left, what do you think of this vision?

—That this is not an ideological issue. Without going any further, it is notable that Juanma Moreno Castaño, president of the PP of the Junta de Andalucía, is one of the main political figures who has recognized the negative impacts of climate change in our country and who also sees the industrial opportunities that it entails. He comes with that powerful message and, on Tuesday, he met with the companies of the Spanish Group for Green Growth because we have an agreement to take advantage of the opportunities in Andalusia. The same is beginning to happen with other political figures. The scientific reality is that climate change is not going away. If it makes sense in the world and it makes sense in Europe, it makes special sense in our country, which in addition to suffering the effects more, has a good base and we can be the hub renewable industrial sector in Europe.

—At COP28, countries agreed to triple renewable capacity by 2030. Is there progress on this goal?

—The goal of tripling photovoltaics by 2030 is going well, meeting deadlines. Wind power is a little behind because development is more complex, it has to do with social acceptance. The rest of the technologies are worse. Specifically in Spain, in 2030 80% of electricity will be renewable, but not enough progress is being made in decarbonizing industry, transport (we have focused on the car, but other means are lacking) and buildings, when the key It is the decarbonization of the entire economy. Our group is working hard to find joint solutions that allow the industry to decarbonize while maintaining its competitiveness. Because all infrastructures, not just electrical ones, have to adapt to climate change. To do this, an important barrier must be overcome: developing the distribution network. This will favor renewable development and the connection of the industry (which wants to connect to renewables, but cannot due to lack of network). However, it cannot be built as it has been until now, which is one of the things that is being talked about the most at COP29, also as a result of Valencia. We have to build with meaning. We must make new developments prepared for the climate to come, as well as accelerate adaptation to climate change. A much more resilient, strong and digital distribution network is needed.

—Do you consider economic growth compatible with stopping climate change?

-Of course. We are the example that it is possible to grow sustainably; increase economic benefits and at the same time reduce emissions, the consumption of natural resources and be more energy efficient and even generate environmental benefits. One of the things we do at the COP is show what solutions our companies have adopted to others, so that they can see with their own eyes that it is possible. This will be the economy of the future: companies will generate economic growth compatible with the environment. This involves promoting green technologies and improving tax policies (for example, the “polluter pays” law).

—After the European law against greenwashing, is it difficult for companies to tell what they do to decarbonize? Do you think we are facing a business credibility crisis?

—No, I think the law will have a positive impact because the greenwashing It has very negative effects. You are deceiving people, losing their trust. This can penalize positive products. Let’s imagine that a company sells you an electric car and then the media informs you that it is not (it is an unlikely example, but so that we understand each other). It would harm the energy transition as a whole, because the lack of citizen confidence would cause fewer energy policies to be promoted along this path. If many sectors of society have moved, it is, in part, thanks to the people. So, having regulation is important because we will see who does it well and who does it badly. From the group that I chair, we actually ask for more demanding regulation, because sustainable companies that have legitimately invested in green must be rewarded and not those that have painted themselves green without investing anything, because otherwise sustainable companies lose competitiveness. . In addition, this will increase consumer confidence.