Decarbonisation is one of CLP’s main priorities for our transition to a Utility of the Future. As the pace of change in the energy industry continues to accelerate, we recognise that the once linear and traditional electricity sector value chain has morphed into an interconnected and multidirectional mesh of opportunities with which we need to evolve. While wind and solar technology continues to improve, battery and other energy-storage solutions are also evolving fast and starting to contribute to grid stability.
Decarbonisation
CLP's Climate Vision 2050
CLP’s Climate Vision 2050 sets out the blueprint of the Group’s transition to net-zero greenhouse gas emissions leading up to mid-century.
Launched in 2007 with a focus on the ambition to mitigate CLP’s climate impact, Climate Vision 2050 has been instrumental in informing CLP’s business strategy and guiding its investment decision-making. It is also an integral part of CLP’s broader climate strategy, which covers key considerations around climate adaptation and scenario analysis, among others. This vision will underpin our long-term success as a business.
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Read CLP's Climate Vision 2050
Globally, our collective approach to decarbonisation needs bolder action. CLP acknowledges its responsibility to play a leading role in these efforts. Our Climate Vision 2050 was further updated in 2021 to align with climate science and industry best practice. It also aligns with the growing expectations of our investors, customers, regulators, employees and other stakeholders.
We will continue to pursue efforts to limit global warming to 1.5°C and further review our targets at least every five years. Drivers for acceleration will include step changes in climate and energy policy, technology advances as well as support from governments in the markets where CLP invests. We are committed to seeking a just transition and striking a balance between financial sustainability, environmental best practice and social responsibility while taking market needs and regulatory changes into account.
Our Targets and Commitments
CLP's key targets and commitments:
- Achieve net-zero greenhouse gas emissions across our value chain by 2050;
- Meet science-based targets for 2030 to align with the Paris Agreement goal of limiting global warming to well-below 2°C above pre-industrial levels. Our interim targets for 2040 have also been strengthened for the same ambition; and
- Phase out coal-based assets by 2040 — a decade earlier than pledged previously.
Our Progress
As we strive for our 2050 target, we have also laid out interim goals. This is to enhance the transparency of our climate response.
Following the release of CLP’s first Climate Vision 2050 in 2007, CLP has fulfilled its decarbonisation targets in 2010 and 2020 by reducing the carbon intensity of its generation portfolio to below 0.8kg CO2/kWh and 0.6kg CO2/kWh respectively. A more extensive elaboration of our annual progress can be found in our Annual Report and Sustainability Report.
Through advancing disclosures and developing scenario analysis based on recommendations from the Task Force on Climate-related Financial Disclosures, CLP wants to help stakeholders better understand how we manage climate-related risks and opportunities that impact our business and progress. Further information can be found in our Climate-related Disclosures Report.
Our Key Approaches
Please read our Climate-related Disclosures Report for our latest response to climate change, or visit the CLP Power Hong Kong, EnergyAustralia and Apraava Energy websites to learn more about our operations and businesses in Hong Kong, Australia and India.
Financing Climate Action
The CLP Climate Action Finance Framework (CAFF) details our proposition to raise climate action finance including bonds, loans and other forms of finance (CLP Climate Action Finance Transactions), as well as to use the proceeds of those CLP Climate Action Finance Transactions to invest in projects that are consistent with CLP Group’s investment and climate strategies.