Looking at the recent economic developments worldwide, we should be happy to see an economic growth rate close to 5% over the last four or five years. That had not been achieved before for more than 20 years.

I. Good News

Energy Demand and Economic Growth There is the link between energy demand and economic growth. We have seen energy demand grow by about 2.2% per year while economic growth was at 5%. It is partly linked to the growth in services as percentage of GDP, and partly to improved efficiency.

II. Bad News

1. CO2
I will stay on the subject of energy problems. Coal accounts for 24% of global energy supply, and is the fastest-growing significant source of energy. It is also the one which is by far the worst offender in terms of CO2 emissions. People in some places in Europe are looking carefully at the energy mix, to determine which nergy source has the lowest greenhouse gas emissions. The priority in Asia, however, is growth. The priority is to use the cheapest energy source, and coal fits the bill. This is clearly a problem.

2. Kyoto Protocol
The sense of urgency about addressing climate change has been growing rapidly in some parts of the world in the last five years. However, there are other very large areas of the world where it is not a priority. One of the problems we face is that the global problem will not be solved if Europe is alone in implementing the Kyoto Protocol. Europe represents 20% of global greenhouse gas emissions. These 20% will probably be only 15% in 10 years from now.

III. Challenges

1. Peak Oil
Total is in the midst of the problems. I do hope that we are also part of the solutions. We are in the middle of the problems because we face scarcity of resources. The discussion about peak oil is not theoretical. One important point to note is that the higher the growth rate in oil demand, the sooner peak oil arrives. It will be more challenging to find alternative energy sources to compensate for the beginning of a decline in oil production. We have this problem as an oil company but we are also a gas company. I often say to our staff in Total that it is not necessarily true that global peak oil means peak oil for Total. We could be clever enough to be involved with energy sources which have yet to be mobilised.
2. Company Development
Therefore, our team should be able to continue developing the company. However, we must at the same time do a lot of other things to contribute positively to the problem of climate change. It means being more efficient in using energy for our own processes. It means delivering more efficient products to our clients. It also means developing alternative energy sources. 3. Finding Acceptable Solutions
We must also find acceptable solutions in terms of CO2 sequestration. It is still in a pilot phase rather than at R&D level. However, it is starting to be done on an industrial scale. There are still a lot of challenges to meet. This will be a very important part of our efforts in the coming years. It is a critical issue.

IV. Foundation

1. Biodiversity
I will now return to the subject of the Foundation and biodiversity. We elected more than 10 years ago to concentrate the Foundation's thoughts on marine biodiversity. We did not feel the same level of urgency in the problem of climate change at that time. We chose the right time for this symposium on the challenge presented to marine biodiversity by climate change. The quality of the exchanges that have taken place over the last three days illustrates that the topic has not been much addressed. I want to thank all of you for your contributions.
2. Marine Biodiversity
We will continue to work on marine biodiversity, both through the Foundation's own programmes and through increasing general awareness of these problems in the Group. We can also help in some very practical ways in other areas. We will be able to access data through the offshore installations we are putting in place across the world.
3. Observatories
We will consider locating observatories close to our industrial installations on a case by case basis. That will give access to data and the development of these data over time. Therefore, we are committed to biodiversity, both directly through the Foundation that was created 15 years ago and through the help our subsidiaries can give with their fixed offshore installations. The topic of marine biodiversity that was selected 10 years ago is more relevant than ever. Thus we will continue to work together.

THIERRY DESMAREST,
CHAIRMAN OF THE BOARD, TOTAL SA
AND TOTAL CORPORATE FOUNDATION