Full Title: Setting 1.5°C-Aligned Science-Based Targets: Quick Start Guide for Electric Utilties
Author(s): Andres Chang, Jeroen Scheepmaker, Oskar Krabbe, Annemarie Kerkhof
Publisher(s): CDP, Guidehouse
Publication Date: June 8, 2021
Full Text: Download Resource
Description (excerpt):
Due to rapid cost reductions for solar, wind, and storage, national and local climate goals, and a growing demand for renewable electricity, the power sector is expected to play a crucial role in decarbonization. While it’s known that the efforts of electric utilities will play a key role, which pathway they should use to understand if their targets are aligned with limiting global warming to 1.5°C were not clear. To create this type of pathway, the combination of future global power demand and the ability to reduce the emissions per unit (kWh) was needed. Guidehouse was engaged to evaluate the options and clarify how utilities could set science-based targets relevant to their sector and align their business strategies with climate science and the Paris Agreement.
In partnership with CDP, and on behalf of the Science Based Targets initiative (SBTi), Guidehouse assessed different climate scenarios and models to come to a climate reduction pathway for electric utilities. To determine minimum ambition, modeled scenarios needed to be consistent, responsible, and objective relative to the desired goal of limiting global warming to 1.5°C. Not all scenarios met the criteria, but ultimately, a set of 20 pathways for the power sector were found to comply with SBTi’s principles, and one well-documented scenario was selected.