The energy transition is a global issue. Greenhouse gases (GHGs) know no borders. Nor do they have the benefits of discoveries in terms of GHG reduction and green technologies. Certainly, there are private and national gains associated with the decarbonization industry, but the urgency of this transition calls for concerted action between states rather than unbridled competition for subsidies to attract green businesses.
Let’s get this straight: if industrialization has enabled a tremendous rise in the standard of living, it has resulted in significant climate change. And the market alone cannot correct the damage. Government interventions, such as these subsidies, are necessary to achieve this. However, with the exception of the United States and Europe, very large states, most states will soon find themselves constrained in their interventions by their financial capacities and will benefit from collaborating rather than competing, especially since the sums involved will be colossal.
It is in this spirit that I recently proposed that a framework agreement between Quebec and France on energy transition be considered1.
The Alliance des patronats francophones represents 28 countries which account for 16% of world GDP, 20% of international trade and 14% of world energy resources. It would therefore be natural to propose an agreement that would apply to all member countries of the Alliance. But negotiating such an agreement would prove too complex and too long in the context of the climate emergency.
The train of industrial policies for decarbonization and renewable energies is now the time to take it. The planet demands it. But fortunately, there is a solution at hand.
Indeed, the Alliance could become the spearhead for making La Francophonie an economic space for energy transition by creating an intelligent digital platform for the use of its current and future members. This platform would play a key role in the success of the energy transition by facilitating the fluidity of materials and minerals in supply chains, the rapid diffusion of green technologies and the widespread adoption of best business practices in decarbonization. It would provide increased visibility to its members and offer them direct access to market data and government subsidies related to green energy.
The first component of such a platform would be the mapping of the strategic situation of the members of the Alliance with regard to the demand and supply of the decarbonization and renewable energy industries. On the decarbonization side, we think of sectors such as measuring the carbon footprint, recovering heat, modifying the mix of materials, physical equipment and digital tools for high energy efficiency, capture, recovery and carbon storage. On the renewable energy side, there are the sectors of wind energy, solar energy, biomass, hydraulic energy, geothermal energy and green hydrogen.
This mapping would be accompanied by a directory of the subsidies offered by the various countries to accelerate decarbonization, the development and the adoption of renewable energies.
The second component of the platform would allow members to carry out exchange, partnership and investment projects. This is where the digital revolution comes to support the energy transition. This platform would be equipped with an analytical software package, including an artificial intelligence algorithm and programming interfaces (API), to identify business opportunities between members according to their strategic situation in the various decarbonization and energy sectors. renewable.
This “automated” analysis of the potential for exchanges, partnerships and investments would constitute the starting point for discussions between the members.
The two components of the platform require a technological stack (a “stack”) adapted to its specific needs. Large private investment funds are already using this type of digital platform. This technology “stack” typically includes software for content management, partner search, due diligence, expertise, projects, and a marketplace for transactions.
You will undoubtedly notice that I was inspired by the recommendations of the international meeting of the economic Francophonie within the framework of the World Forum of the French language held in Quebec in July 2012. One of them explicitly proposed to “develop a French-speaking digital technology for business at the service of economic players”.
The implementation of such a platform would require the creation of an Alliance working group supported by experts in energy and digital technologies. Its mandate would be to specify the business plan and budgets for the construction and operation of the platform by determining the sources of funding required to ensure its sustainability.
This working group should be joined by the main private and public players already involved in sustainable development, including the Institut de la Francophonie for sustainable development.
Finally, the working group should take into account the specificity of all participating players and countries, whose ability to pay and level of digital infrastructure vary greatly.
The conditions for the success of such a project are now met. Firstly, because the energy transition is a priority issue for States and companies, which devote immense resources to it. Second, because the urgency of the energy transition has created a lucrative industry for the companies involved. Finally, let’s add that the cost of building a digital platform has fallen substantially over the past 10 years and that digital platforms have clearly demonstrated their economic advantages.
Creating this platform would make La Francophonie a leader in the energy transition.
We must seize this opportunity.
* This text is a summary of a speech by Henri-Paul Rousseau, on June 12, during the Meeting of Francophone Entrepreneurs, organized by the Alliance des patronats francophones, Québec