Enel is moving forward on decarbonisation and on the Net Zero objectives, ambitious according to what the group itself foresees in its own Zero Emissions Ambition Report just published. Two weeks after the assembly of May 10 and the controversial change of the guard at the top, Enel is going straight and declares precise steps towards the Zero Emissions objectives. Please note: we are not talking about Net Zero but about Zero Emissions. The difference? It's not trivial. Here is the precise map of the route that CEO Francesco Starace and his team submit to investors. The same investors, including several Funds, who have criticized the government's decision judging it opaque and the total lack of transparency of Enel appointments. But let's see the new map for decarbonization.
Report Zero Emissions Ambition: the stages of Enel's decarbonisation
The Report indicates Enel's decarbonisation path which is based on specific greenhouse gas reduction objectives validated by the Science Based Target initiative (SBTi) in December 2022 and aligned with the limitation of global warming to 1,5ºC. These objectives include:
- the reduction of direct emissions deriving from power generation electricity by 80% in 2030 and 100% in 2040
- the reduction of direct and indirect emissions deriving from energy sale 78% in 2030 and 100% in 2040
- the reduction of indirect emissions deriving from gas sale in the retail market by 55% by 2030 and 100% by 2040.
The report also describes the milestones that the Group plans to take to achieve the zero emissions by 2040:
- by 2025 le renewable they should represent around 75% of Enel's total production
- by 2027, Enel will complete the decommissioning all of its coal-fired power plants
- by 2040, all of the installed capacity it will be 100% renewable. The group will have the thermoelectric generation and gas sales activities ceased in the retail market and 100% of the electricity sold will be produced from renewable sources
The indications of the Report are in line with the Strategic Plan 2023-2025, announced by the group last November, which provides for approximately 37 billion euros of investments of which 17 billion euros will be dedicated to renewable energies and 15 billion euros to networks. Over 94% of investments will therefore be aligned with the United Nations Sustainable Development Goals, especially for the contribution to climate change mitigation.
Ciorra: "Objectives incorporated in strategic choices"
“The Zero Emissions Ambition Report describes Enel's choice to set an ambitious goal compared to the original global “net zero” target for 2050, underlining our strong commitment to a sustainable and decarbonised future for all in the context of the global energy transition” , he has declared Ernesto Ciorra, Head of Innovability of the Enel Group. “This document, which also includes all the initiatives involving Enel's stakeholders, highlights how the sustainability , fight against climate change model ours strategic and business decisions, in line with the need to promote the transition towards more sustainable, resilient, climate-neutral and intrinsically less risky industrial processes, combining equity and inclusiveness".
Net Zero and Zero Emissions: what's the difference?
What is Net Zero? Put simply NetZero is the difference between the residual and unavoidable greenhouse gas emissions produced globally by human activities and the removal of these emissions to ensure an overall neutral result. Therefore, in essence, we speak of Net Zero when we aim to neutralize greenhouse gas emissions in part by reducing them and in part by balancing them with activities that absorb incompressible CO2. It would be a bit like saying I produce coal but plant many trees: the end result is net zero.
If the Net Zero goal is an essential step towards sustainability, the ambition of Enel reports it is of quite another scope. Here we talk about Zero Emissions: it is a question of eliminating emissions, direct (for example in the production of electricity) or indirect (for example by giving up the sale of gas). Enel is 10 years ahead of the Net-Zero goal, globally forecast for 2050. And it is aiming straight for Zero Emissions in 2040. This is the commitment of the current top management that investors have judged achievable and able to put the group safe from future risks. But Francesco Starace will leave the place – on May 10 – to Paolo Scaroni president and Flavio Cattaneo CEO. What indications did they get from the government?
