EnergyCERAWEEK We need a carbon price, can manage it regionally - Repsol deputy CEO

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A Repsol logo at a petrol station in Bormujos near the Andalusian capital of Seville, southern Spain March 3, 2016. REUTERS/Marcelo del Pozo

The world needs a carbon price in the transition to a lower-emissions economy and should not wait for global consensus on the issue, the deputy CEO of Spanish energy group Repsol (REP.MC) told an oil and gas conference on Tuesday.

"Definitely we will need a carbon price," Luis Cabra told the online CERAWeek event.

Governments can put a price on planet-warming emissions through taxes or by issuing the sort of limited, tradable permits that the European Union set up in 2005.

"We should be ready to accept and to embrace something which is not a single global carbon price and maybe we need to think that for a while we need to live under regional regulations," Cabra said.

Repsol was an early mover among oil and gas firms in pledging to cut emissions from oil products it brings out of the ground to net-zero, meaning no more than can be absorbed by planting trees or using other technology, by 2050.

Cabra said the company expected to achieve 80-90% of this reduction by relying on low-carbon fuels, producing electricity from renewable sources, and employing new technology that can capture, use and store carbon.

To reach 100%, "we may need the so-called natural climate solutions as a complement to our basic homework which is decarbonising the energy production," Cabra said.

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