French government should twist TotalEnergies’ arm over renewable energy, says senate report
Commission investigated how to make sure activities of oil giant are aligned with France’s climate commitments
The French government should intervene in TotalEnergies to speed up its energy transition while taking a “golden share” to give it strategic control of the oil giant, a senate commission has recommended.
The commission published a report on Wednesday setting out 33 steps the government should take to ensure Total complies with France’s climate commitments.
These include pushing Total to accelerate its efforts and investment to become a leader in renewable energy and clean technologies.
The report also said that the state should take a “golden share” in Total that would give the government power over strategic company decisions.
Yannick Jadot, a senator with the French Green Party who served as the rapporteur for the commission, which feaured politicians from several parties, said that it had recommended the French state “re-enters into the capital of TotalEnergies to have a right to review what is happening there.”
The state in the 1980s and 1990s held a more than 30% stake in Total before its merger with former petroleum company Elf, which it owned half of.
"We want Total to remain a French group and a pioneer in the energy transition – it may not please investors but yes, we are aiming for a return of sovereignty,” said Jadot.
The report follows almost half a year of hearings by the commission on whether Total's global activities align with France's climate objectives.
The report welcomed efforts made by TotalEnergies to shift to renewables, saying these are “superior” to those carried out by the other hydrocarbon majors – particularly its “Anglo-Saxon” counterparts.
Thirty-five per cent of Total’s net investments were in low-carbon energies last year, it said.
Total is one of the largest polluters in the world but, while continuing to invest in fossil fuels assets, has also taken up a place as one of the leading renewable energy developers worldwide.
French law allows the government to buy a single share in strategic domestic companies and convert it into a so-called "golden share." This allows it to block actions deemed detrimental to the national interest, such as a takeover or sale of a business unit.
It is unclear what power the ownership of a “golden share” would give the French state power to potentially block TotalEnergies from moving its primary listing to New York, an idea CEO Patrick Pouyanné said he was exploring in May, while stressing that the company would never leave France.
TotalEnergies was approached for comment.
(Copyright)