Energy transition

Driving a sustainable transition

We need energy policies and actions for a energy transition. The fight against climate change is one of the most important challenges that humanity must face in the 21st century.

The commitment to a decarbonised society is everyone's task. At Iberdrola, we are committed to spearheading the energy transition, a challenge that we undertook 20 years ago and that has made us a world leader in renewables. We are committed to the electrification of the economy, the promotion of green energy and technological innovation to guarantee a greener future for future generations.

What is the energy transition?

nergy transition is defined as a set of changes in energy production, distribution and consumption patterns to achieve greater sustainability. The aim of this process is to transform the current energy system based on fossil fuels into an electricity model based on renewable energies and other forms of emissions reduction.

The process of energy transition is not new. Other major changes have preceded the current one throughout history, such as the shift from wood to coal as a means of energy production in the 19th century and from coal to oil in the 20th century. 

However, what characterises this transition as compared to previous ones is the need to protect the Earth from the worst threat we have experienced so far: climate change. A defence for which we must prepare ourselves as quickly as possible. A necessary transformation in which we must all be participants and protagonists.

Transición energetica creatividad

What benefits will the energy transition bring?

Environmental benefits

  • energy transition co2 Reduction of CO₂
  • energy transition emissions Reducing the greenhouse effect and global warming
  • wind energy transition Use of renewable, inexhaustible and clean energies
  • energy transition environment Improving air quality
  • energy transition sustainability Preservation of biodiversity and natural resources
  • energy transition innovation Development of more renewable energy projects
Illustration Illustration

Social benefits

  • Icono Improving people's health and well-being
  • Icono Increased environmental awareness
  • Icono Boosting energy efficiency
  • Icono Conflict mitigation for scarce resources
  • Icono Energy democratisation and social equity
  • Icono Proliferation of green jobs

Climate change: a major challenge for humanity

Climate change is today's greatest environmental challenge. For years we have been experiencing unprecedented rapid global warming as a consequence of human activity, mainly due to the burning of fossil fuels that generate greenhouse gas emissions. In this sense, the electricity sector plays a key role in achieving the goal set by the historic Paris Agreement to limit the increase in global temperature to 1.5 ºC and to halt the decarbonisation of the economy through the energy transition.

The effects of climate change

The impacts of climate change are already perceptible, according to data from the World Meteorological Organisation (WMO):

Committed to the energy transition

Only by addressing the major challenges can we achieve a resilient and planet-friendly change of model. That is why we are committed to spearheading the energy transition, a task that we set in motion 20 years ago and that has made the Iberdrola group the world leader in renewables. We are now making progress on our historic climate action plan, the most ambitious of the COP 27.

At Iberdrola, we are committed to making investments of €41 billion by 2026 to drive the energy transition, employment and net zero emissions. For us, grids are the backbone of new renewable capacity integration and will enable the implementation of new distributed solutions and services. For this reason, we plan to invest €21.5 billion in grids in the US, UK, Brazil and Spain, representing 60% of net investment. 

In addition, aware of our role as a driving force and benchmark for many other companies in their goal of electrifying the economy and investing in clean energy, we participate daily in different events and meetings of multilateral organisations and alliances to promote the energy transition.

Key actions to accelerate the energy transition

  • Boosting technological innovation

    Technological evolution is enabling the transition of the entire sector, from improvements in power generation to the drive for smart grids and the provision of new services to customers.

  • Electrification of the economy

    Electrification of the economy, transport and buildings is the main energy driver of the energy transition towards decarbonisation.

  • Renewable energy deployment

    If the objective of the energy transition is to achieve decarbonisation, it is essential to achieve maximum integration and stability of renewable energies.

ETaaS: the energy transition as a service

The energy transition is everyone's job. Part of the energy industry, increasingly aware of the effects of climate change, has been working for years to improve the sustainability of its activity. Against this backdrop, the ETaaS (Energy Transition as a Service) concept has emerged, covering all those energy services that will help companies to reduce their carbon footprint.

Read more about ETaaS

What energy policies are driving this transition in the world?

The adoption of the Paris Agreement in 2015 was a historic milestone in the global climate agenda because of the multilateral framework for climate action that was created. This pact, led by the United Nations, set the goal of limiting the global temperature increase to below 2 °C by the end of the century compared to pre-industrial levels, leaving the door open to an increase of up to 1.5 °C.

The current agreement requires all signatory countries to submit national climate contributions to be updated periodically and obliges developed countries to continue to take the lead in financial contributions.

Transición energética Creatividad

Energy transition in Europe

The European Union (EU) was one of the first players to set a course towards the energy transition by presenting in 2007 the first climate and energy targets for 2030 based on three main pillars: the reduction of greenhouse gas emissions, the deployment of renewable energies and the improvement of energy efficiency.

The final step came at the end of 2019 with the presentation of the European Green Deal. Supported by major companies such as Iberdrola, this agreement establishes a strategic roadmap that places the just and green energy transition at the centre of political action. The commitments are based on achieving a climate-neutral EU by 2050, protecting biodiversity and developing clean energy, among others.

Current European energy targets for 2030 include:

55 % reduction in greenhouse gas emissions compared to 1990.


A 32 % share of renewable energies in total gross final energy consumption.

eficiencia energética

32.5 % improvement in energy efficiency.

Countries with pioneering energy policies

Sustainability is increasingly high on the political agenda in many countries. However, only a few of them can be considered true pioneers in adopting legal frameworks for energy transition. This is the case of Denmark, which stands out for its plan to reduce greenhouse gas emissions by 70 % by 2030 - one of the most ambitious programmes in Europe. By 2050, the country expects to be carbon neutral.

Neighbouring countries Sweden and Finland also stand out as historical forerunners of climate policies that are committed to the deployment of renewable energies and the total abandonment of fossil fuels. Various reports point to progress in green policies in other countries beyond the European Union, such as the United Kingdom, Iceland, Canada and New Zealand. However, the United Nations warns that there is still a long way to go.