03 Apr EUROPEAN UTILITIES ON PATH TO BLOW THROUGH ‘CARBON BUDGET’
A new report released today by CDP, a provider of corporate climate data, analysing an over €250 billion market cap grouping of European utilities reveals that the industry is locked into high emissions from long-lived fossil fuel power plants until 2050. Further, at a carbon price of €30, the sector faces EUR€14 billion of earnings are at risk.
Despite the EU target of 45% renewable energy, utilities on the continent are still heavily dependent of fossil fuels, generating over 40% of their energy from these sources. Almost half of the reviewed companies produce a whopping 20% of their electricity from coal. At the current rate, European utilities are set to go through their ‘carbon budget’ – required to keep global temperature rise below 2°C – by 14% or 1.3 billion tonnes of CO2. This is equivalent to Japan’s entire annual carbon emissions.
Read more on CDP’s website.