Leading energy companies join forces to enable near doubling of renewable energy capacity by 2025
Recently, world-leading energy and technology companies launch their action plans “Scaling up renewables” to nearly double renewable energy capacity by supporting the global deployment of 1.5TW of additional capacity by 2025. This major announcement comes at the EWEA (European Wind Energy Association) Annual Eventin Paris.The sixteen leading energy and technology companies part of LCTPi’s Renewable Energy program together account for nearly 10% of global installed capacity. They believe that the doubling of renewable energy capacity required by 2025 to stay below 2°C is achievable. They will address barriers preventing the necessary widespread uptake of renewable energy by:
– Facilitating efficient, reliable, effective and commercially viable integration of renewable energy into grids and electricity markets, including promoting energy interconnections,
– Facilitating the significant scaling up of green bond finance through a commitment to robust verification and transparency as well as de-risking project pipelines,
– Working with corporate renewable energy buyers to scale renewable energy procurement and channel demand towards renewable energy,
– Promoting sustainable electrification of remote areas via accelerated deployment of low carbon microgrids.
Commenting on the launch of the group report and CEO statement, President and CEO of the WBCSD Peter Bakker said: “Accelerating the development and deployment of renewable energy is a critical part of the 2°C pathway. We are working with the world’s most forward-thinking companies to develop innovative low carbon solutions that can help address the climate challenge. “Today’s announcement on Renewables shows that businesses around the world are taking concrete action to combat climate change as they see the multiple integrated benefits of investing in a low carbon world.”
Renewable energy is reliable and increasingly competitive, with significant economic benefits extending beyond climate change mitigation. An Impact Analysis by PwC of LCTPi revealed the potential for the initiative to generate over $3.5 trillion worth of investment and up to 15 million jobs. Other benefits range from enhanced energy security and access to increased flexibility and resilience of electricity systems. It also showed that as a whole, the ambitions of the nine LCTPi working groups could deliver 65% of the required emission reductions needed to keep climate change below the 2°C threshold.
To achieve the scale required, business actions need to be supported by the appropriate policy framework. Members of the Renewables LCTPi have developed clear recommendations for policymakers and regulators to enable accelerated deployment of renewable energy. Carbon pricing and forward-looking market and regulatory structures are critical to success. Additionally, ongoing and deeper collaboration between public and private sectors will be necessary to address the climate challenge effectively on both local and global levels.
CEO of EDP Group, António Mexia said:
“Renewable energy is crucial in addressing climate change and presents substantial economic opportunities given increasing cost-competitiveness with other power sources. EDP recognizes the urgency of the need to move towards a low carbon economy and the opportunities associated with this, and has committed to increasing electricity generation from renewable sources to 75% of installed capacity by 2020.
“Considerable progress has been made in renewable energy deployment globally, however, the time for a major step-up has come. New business models are needed to enable the scaling up of renewable energy at the speed that is required. The LCTPi framework presents an opportunity for business to work collaboratively to make this happen, and to ensure our companies are well placed to benefit from the resulting opportunities.”
Mr Rui Teixeira, member of Board of Directors for EDP, will be speaking on behalf of the LCTPi group at the EWEA event in Paris on Thursday 19 November.
CEO of Iberdrola, Ignacio S. Galán said:
“Decarbonisation of the world’s electricity generation is a crucial part of the transition to a low carbon economy. Iberdrola began this transition nearly 15 years ago. Today, our specific emissions are 30% lower than the average of the European electricity sector thanks to our reliance on renewable energy. But we can do more, and we have set tough new environmental targets for our generation business with the aim of reducing, by 2030, our CO2 emission intensity by at least 50% from emissions recorded in 2007 and, furthermore, to become completely carbon neutral by 2050.
“Acceleration of renewable energy deployment must take place globally in order to achieve the decarbonisation required to limit climate change to below the 2°C threshold. Businesses and governments alike need to work together to set the right policy framework and remove barriers. Under the LCTPi framework, we are working with other innovative companies and partners to proactively develop business-led solutions to address key barriers which, in addition to ongoing technological innovation driven by the electricity industry, will speed up decarbonisation of the economy.”
Chief Sustainability Officer of NRG, Leah Seligmann said:
“Acting on climate change is not a choice but a necessity. The LCTPi Renewables working group is an opportunity for large users and producers of energy to accelerate the shift to a low carbon future. Driven by business and economic factors as much as societal, corporations of all types have the freedom and the ability to innovate and solve the world’s greatest challenges for mutual benefit. To stay below 2°C, one step we know we must take together is investment in and adoption of clean energy solutions.”
Chairman & CEO of ACCIONA, José Manuel Entrecanales said:
“Renewable energy is ready to match the challenges of Sustainable Development; however, scaling-up and accelerating its deployment is decisive in slowing down global warming. Implementing effective carbon pricing mechanisms and developing initiatives like LCTPi, that addresses future market structures and regulatory frameworks, are key elements in moving forwards to a low carbon economy.”
The Renewables LCTPi will collaborate with the International Finance Corporation, the Clean Energy Ministerial, The Climate Group and the Climate Bonds Initiative in the development and implementation of the action plans. These initiatives will enable leading companies to fully harness the economic opportunities of investing in renewable energy and accelerate the transition to a low-carbon economy.