CLIMATE CHANGE AND GREENHOUSE GAS EMISSIONS
Backing international agreements to fight global warming
Iberdrola has made a pledge to the public to remain amongst the main european companies with the fewest CO2 emissions per kWh. The Company focuses its efforts on gradually reducing greenhouse gas emissions, promoting renewable sources and using the most efficient technology available.
Climate change is one of the major challenges of the 21st Century. The main cause is the exponential increase over recent decades of greenhouse gas concentrations emitted into the atmosphere in which human activity, with the growing use of fossil fuels (coal, gas and oil), is a determining factor.
The main options available to face climate change from the energy sector are the promotion of renewable energies and the use of fossil fuels with lower carbon content in thermal production, in addition to improvement in generation, transmission and final use of energy.
Conscious of the fundamental role that the energy sector plays in this field, the Group has a Policy against Climate Change [PDF] to promote support of the international agreements needed to solve this environmental issue, encouraging the development of efficient technologies to reduce greenhouse gas emissions, fostering the efficient use of energy and conducting awareness campaigns amongst its customers to encourage responsible energy consumption.
Iberdrola backs top-level political negotiations aimed at achieving the climate objectives in the medium and long-term, in both industrialised countries and in developing countries. It also backs the goal to keep the global temperature increase below 2ºC with ambitious emission reduction targets linked to scientific breakthroughs in the field and an important role played by the CO2 price signal emerging in the market. The ambitious targets provide the right signs to promote technological change in the electricity sector and generation using cleaner technologies.
Iberdrola ratified its firm commitment to combatting climate change during the Paris Agreement ratification process in New York in April 2016. The Company adhered to the Carbon Disclosure Project (CDP) targets proposed through the Road to Paris 2015 project.
In January 2015, Iberdrola joined the CEO Climate Leadership Group, set up as part of the Davos World Economic Forum. The Company undertook to work together with the other companies in 2015 to limit global warming to 2ºC and present real and tangible solutions to keep fighting against climate change. Iberdrola believes that cooperation between companies and political decision-makers is crucial, not to mention efforts by the private sector to decarbonise the economy.
Iberdrola presented its Climate Change Manifest in Paris in 2015. This set out the company's commitments and actions to combat global warming: achieving a 30% reduction in the intensity of its emissions by 2020 and a 50% reduction by 2030, as compared with the emissions of the year 2007.
These Climate Change policies have had an impact on utility management, because since emissions trading came into force a new factor has been introduced to electricity generation costs: the cost of the CO2 emissions.