Energy Efficiency, GHG Emissions, Utilities - March 25, 2019
Bloomberg plans Decarbonization Tracker for utilities
Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies, announced plans for a new Decarbonization Tracker for utilities. It will track the progress made by utility companies transitioning away from fossil fuels, as part of the larger global effort to reduce carbon emissions to levels in line with those established by the Paris Agreement.
Speaking at the BloombergNEF (BNEF) Summit on March 25, Bloomberg was joined on stage by Ben Fowke, chairman, president and CEO of Xcel Energy and Grzegorz Gorski, managing director of power generation at ENGIE. These utility companies have both made commitments to decarbonization.
“Utilities have a critical role to play in reducing the emissions that drive climate change - and stopping the destructive effects it is already causing," said Bloomberg, who also serves as UN Special Envoy for Climate Action. "We've long known that replacing coal with clean energy is good for our health, but increasingly, it's good for our pocketbooks, too. The trouble is: we don't have access to data that would reveal how utilities are doing in reducing greenhouse gas emissions. Thanks to the leadership of companies like Xcel Energy and ENGIE, the Decarbonization Tracker will help change that."
The Decarbonization Tracker will provide clear metrics that demonstrate each company’s progress in converting to clean and renewable energy sources – serving as a useful tool for the utility sector, as well as investors seeking to adhere to recommendations made by the Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD). With a deeper understanding of the financial implications of the reliance on unsustainable energy sources like coal, they will then be able to better align their business plans and investment strategies with long-term climate goals.
The Decarbonization Tracker for utilities will be developed in consultation with key stakeholders, and is slated to be released in full at the UN Secretary-General’s Climate Summit in September 2019.
Photo courtesy of Bloomberg