For the first time, the Paris Agreement established ambitious and global climate goals: limiting global temperature rise to 2°C and ensuring a neutral balance between the emission and removal of greenhouse gases (GHG) in the 2050-2100 period.
To achieve these goals we need to increase the global economy’s current decarbonization rate by about 500%, and the electricity sector and the energy sector will play a crucial role in this transition.
EDP has a business strategy focused on growth from renewable sources, and it is already one of the largest windfarm operators in the world. Our climate strategy is inseparable from our business strategy: to decarbonise electricity generation and provide our customers with efficient solutions that enhance the efficient electrification and accelerate the decarbonization of the economy.
To implement this strategy, we assume 5 commitments :
To achieve this strategy we assumed 5 commitments:
EDP has joined all major international initiatives that aim to foster corporate leadership in the creation of a low carbon future. In this context, we commit to:
- An emission reduction goal which is consistent with the decarbonization levels required to limit global temperature rise to 2°C (Science Based Target). The goal, approved by Science Based Target initiative in the beginning of 2017, was to reduce by 55% the scope 1 and 2 specific emissions ib 2030, compared with 2015 levels;
- Achieve carbon neutrality in 2050 (EURELECTRIC Declaration);
- Align our internal carbon prices with the Business Leadership Criteria on Carbon Pricing, as determined by the United Nations Global Compact;
- Disseminate climate change information in our accounting documents, as per the requirements of the Climate Change Reporting Framework (prepared by the Climate Disclosure Standards Board).
We are one of the partners of the Low Carbon Technology Partnerships Initiative (LCTPi), which is headed by the World Business Council for Sustainable Development (WBCSD).
The LCTPi brings together some of the largest companies in the world, and it has shown that currently available business solutions have the potential to reach the 65% emissions reduction required to achieve the 2ºC goal. The purpose of the renewable energies action plan, in which EDP is directly involved, is to promote the installation of 1.5 TW of renewable energy worldwide, over the next 10 years.
Business decarbonization and 2018 performance
CO2 emissions from our thermoelectric power plants depend on a number of factors, notably the fossil fuels (coal and natural gas) mix, the market price of these fuels, which determines, together with the price of CO2 in the European emission trading scheme, the power plants order of merit, and, lastly, the hydrological conditions, characterized by the hydraulic index (IPH), which determines the greater or lesser use of hydropower. In recent years, market factors have led to the preferential use of coal-fired power plants and the fluctuations observed in the annual CO2 emissions reflect the variation of the IPH.
The interannual variation of CO2 specific emissions is mainly influenced by the increasing penetration of renewables and the impact of hydroelectric production in Portugal, strongly dependent on the IPH.
EDP reports its direct (scope 1) and indirect emissions (Scope 2 and 3) according to the recommendations of the GHG Protocol - see chart by emission categories.
¹ Detailed information about the climate strategy and performance may be consulted in the answer to CDP - Climate Change and in the Annual Reports.
² Based on global emissions factors of each geography.
³ Based on suppliers emissions factors.
In addition to the initiatives to reduce the carbon footprint in terms of energy distribution and generation, EDP plays a very active role with its customers and the community in general, promoting the improvement of energy efficiency in end use and the consequent reduction of emissions.
Addressed to the liberalized market, EDP provides a set of solutions to meet the specific requirements of the different customer segments, through a diversified offer of competitive and sustainable products and services, that avoid emissions in the end consumption of energy.
More detailed information on the products and services provided by the various EDP Group business units can be found in the Sustainability Report 2017, as well as in the documents "Normative Guide to Energy Services" and “DSM and Energy Efficiency Initiatives 2018”.