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Patrick, Paddy, hi. Let's
start with you, Paddy...

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decarbonization is all
over the place at this COP.

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What are your impressions thus far?

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Lots of positives, in that
decarbonization opportunity, options,

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all understood. Private sector
wants to get on with it,

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is very impatient.

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Lots of dialogue on funding
continues to be a big theme.

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How we continue to fund that
transition in the emerging world.

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Also a big doubt as to
whether the energy crisis

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and rampant inflation is now going to
leave renewable energy behind again.

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But the fact of the matter is,

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I think there is also the understanding
that that's not entirely true,

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because fossil fuel prices
are going up and the cost of

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generating with fossil fuels is also
way higher than through renewables.

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So lots of will, commitment,
and focus on action.

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Patrick, as Paddy mentioned
there, the energy crisis,

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markets in turmoil over recent months.

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What impact is that having on
decarbonization now and into the future?

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It's a fossil energy crisis, right?

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Where we see scarcity and increasing
prices on the fossil side... gas...

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oil, and then as a result,
power from that. But to me,

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this significantly has improved the
business case of any green technology.

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Literally any climate and decarbonization
lever is now more economic than it was

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a year ago. We talk efficiency, we talk
renewable energy, we talk hydrogen,

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even CCS, Carbon Capture and Storage.

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The challenging aspect is that the CEOs'
agendas are busy now with short term

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crisis fighting, it's literally
a fight for management attention,

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but it's much less a fight for
business cases and fundamentals.

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So we need to survive the short term
and need to make sure we have sufficient

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power of decision making and
reorientation to capitalize on the much

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more attractive business case for a green
transition that luckily was triggered

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by the fossil energy crisis.

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I absolutely agree with you.

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I think the energy crisis is actually
been a helpful thing in that it has

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really triggered the focus. There's
a lot more concern around security,

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but now we are starting to understand
that decarbonization and security

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actually... they don't need to compromise.

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They are actually one and the same in
that the decarbonized energy solutions

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are very,

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very local and they require more
interconnection for resilience

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and for efficiency. So security,

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social responsibility,

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climate are all integrated
in the solution.

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So the energy trilemma is no
more, right? Historically,

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we would've said there's a
trade-off of sustainability,

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affordability and security of supply.

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It's now all aligned... in most parts...

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So Paddy,

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what do companies and governments need
to watch out for in this 'new normal'

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context?

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Look,

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governments need to continue to make sure
that the enabling environment is there

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for the private sector to invest,
the ambitions are clearly set out,

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and to follow through with regulation
and policy actions. The private sector,

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on the other hand, now is very
efficient at starting to deliver...

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needs to recognize that the
risk paradigm has changed.

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When energy was being
supplied at a high price,

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using the fossil fuel energy era,

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the risks in a developing
country - expensive

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energy is a very different risk to when
we are able to deliver now renewable

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energy at much lower prices.

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So we need to be reevaluating the
risk model, how we price money.

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I think for companies and for financiers,

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that is where the real opportunity
is, and that is, I think,

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our responsibility now.

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So we also need to take
that responsibility on our
shoulders as private sector.

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The only addition I would say - for a
company, for a private sector player,

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figure out 'what's your business model
in the net zero world' and then work

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backwards and take bold
decisions. And the bolder you are,

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the more you take risk out of this
because technology will evolve faster.

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Downstream commitments have been made.

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The pull for green technologies we see
on the steel side, on the ammonia side,

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et cetera, is already kicking in.

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So there's really a risk of missing
out and not being fast enough in this

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transition, recognizing it's for almost
all sectors, not for every single one.

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Patrick Paddy, thank
you so much. Thank you.