1. What Jobs in a low carbon economy ? 20-21 February 2007 Transition to Low Carbon: impact on Competitiveness and Jobs The point of view of an European Oil and Gas company

2. 2 Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007 Transition to a ” low carbon economy”: a major challenge for oil Industry The facts : In order to limit the consequences of climate change, many recommendations (IPCC, Stern report…) to move urgently to a ” low carbon economy ” The EU’s Energy Strategy Review key targets concerns reduction of GHG emission and related policies TOTAL - supports the EU target of 20% GHG reduction in 2020 -welcomes the EU 20% target on energy efficiency and the EU ambitious targets on Carbon Capture and Storage

3. 3 Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007 But, the EU ”low carbon policy” has to be implemented within realities of the Energy Market Fossil fuels expected to remain the main source of energy supply by 2030 The GHG reduction from fossil fuels well to tank process is limited (such process represents only 15% of emissions) Expected increase of demand and more stringent fuels specifications could contribute to increased CO2 emissions from refineries Refineries activity in EU will be sustainable as long as competitiveness shall be maintained

4. 4 Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007 TOTAL recommendations To dedicate oil in EU and OECD mainly for transportation and petrochemical uses and to rely more on Biomass and Gas for power generation peak oil to be delayed To promote the emergence of a global framework for carbon after 2012 including all major emitters role of EU’s external relations To promote in EU a friendly and predictable regulatory and market framework (ETS, NAPS and CO2 price ) To establish a fair burden sharing of the “low carbon economy” between industry, consumer, and transportation networks necessity of EU/Members States coherence To support low carbon technologies ( in particular Carbon Capture and Storage, Renewables and Energy efficiency related technologies)

5. 5 Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007 Conclusions Expanding the technology driven non CO2 energy sector should be a powerful engine for new and economical activities and jobs within the EU Strong cooperation/disseminations between Oil industry and other industrial sectors (ex : Total/Alstom – Total/Véolia) Some leading actions from TOTAL: -CCS : the Lacq project -Biomass and Biofuels: the Second Generation biofuels and bio- refineries… -original support to SME’s through its « regional development » programs (agreement to be executed soon between FECER, FECCIA, EMCEF and TOTAL ) Low carbon economy is possible – sound science and cost efficiency are the drivers for the future

6. 6 Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007 The Lacq CCS pilot project (France)

7. 7 Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007 Oxygène Combustible Fumées d’oxy - combustion Eau d’alimentation Vapeur produite Ventilateur booster vers traitement de fumées Traitement des fumées Registre Ventilateur de recycle des fumées Cheminée Exemple of R&D and technology improvement to be issued from CCS Conversion of a Lacq’s steam boiler to oxy-combustion  Conversion of a classical steam boiler using air to an steam boiler using oxygen (Oxy-combustion)  40 t/h steam 60b/450°C (30MW th ) to deliver Lacq steam network  Original boiler commissioned in 1957  Modifications studied by Alstom to convert this boiler to oxy-combustion Prestataire chaudière

8. 8 Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007 Evolution of the Biofuels activity of TOTAL* ( * present European leader on biofuels)

9. 9 Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007 Examples of different types of technologies so called “ 2 nd Generation Biofuels “ (Notice that bio wastes and other bio feedstocks not in competition with food can be used for those pathways)

10. 10 Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007 TOTAL’s support to SMEs Type of support:  Start Ups  R&D and technology  International development  Financial  Revitalization of industrial areas  African SME’s From more than 10 years, support to 3500 SMEs, corresponding to 44 000 jobs CREAT I Cap Export 2006 Award