WHAT TO EXPECT FROM POWER UTILITIES TRANSITION PLANS?

The document establishes a reference framework for financial actors to evaluate power utility transition plans across four categories: emissions reduction, energy planning, capital expenditure (CAPEX), and climate planning. It argues that for a plan to be 1.5°C-aligned, utilities must commit to a carbon-neutral power sector by 2035 in Europe and OECD countries (2040 elsewhere), implement plant-by-plant closure plans for fossil fuels without sales or conversions, and dedicate over 86% of CAPEX to sustainable technologies by 2030. The guide also recommends that financial institutions implement sectoral exclusion policies for fossil gas and achieve a 6:1 financing ratio in favor of sustainable power over fossil fuels by 2030.

• Financial institutions are advised to implement a sectoral exclusion policy for fossil gas in power generation, aligned with a phase-out by 2035 in Europe and OECD countries and by 2040 in the rest of the world, and to achieve a 6:1 financing ratio favoring sustainable power over fossil fuels by 2030.
• A robust transition plan requires a science-based 1.5°C-aligned reference scenario with low or no overshoot, absolute emissions targets covering all scopes (1, 2, and 3) and all greenhouse gases, and a specific target for methane emissions.
• Credible energy planning must include a plant-by-plant closure plan for coal and gas plants that excludes the sale or conversion of these assets to other fuels like hydrogen or biomass. Coal plants should be phased out by 2030 in Europe and OECD countries (2040 globally), and gas by 2035 in Europe and OECD countries (2040 globally).
• To be considered ambitious, power utilities should have sustainable power capacity exceeding 77% of total capacity or 69% of the generation mix by 2030, and should avoid new hydropower in Europe or new biomass and nuclear power globally.
• Financial coherence requires that utilities report granular CAPEX and dedicate more than 86% of their capital expenditure to sustainable technologies until 2030, with zero investment in new fossil fuel capacity, including LNG projects.
• Effective climate planning must include detailed board-level responsibilities and leadership accountability mechanisms for achieving climate targets, specifically including the impact of these targets on remunerations.

APA

Sebrecht, P.-A., Mathieu, A., Schreiber, P., & Alarcon, B. (2024). WHAT TO EXPECT FROM POWER UTILITIES TRANSITION PLANS? Reclaim Finance. https://reclaimfinance.org/site/wp-content/uploads/2024/12/What-to-expect-from-power-utilities-transition-plans.pdf

Chicago

Sebrecht, Pierre-Alain, Aurore Mathieu, Paul Schreiber, and Brigitte Alarcon. WHAT TO EXPECT FROM POWER UTILITIES TRANSITION PLANS? Reclaim Finance, 2024. https://reclaimfinance.org/site/wp-content/uploads/2024/12/What-to-expect-from-power-utilities-transition-plans.pdf.

Wikipedia

{{cite report |last1=Sebrecht |first1=Pierre-Alain |last2=Mathieu |first2=Aurore |last3=Schreiber |first3=Paul |last4=Alarcon |first4=Brigitte |title=WHAT TO EXPECT FROM POWER UTILITIES TRANSITION PLANS? |publisher=Reclaim Finance |date=December 2024 |url=https://reclaimfinance.org/site/wp-content/uploads/2024/12/What-to-expect-from-power-utilities-transition-plans.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sebrecht2024what, author = {Sebrecht, Pierre-Alain and Mathieu, Aurore and Schreiber, Paul and Alarcon, Brigitte}, title = {{WHAT TO EXPECT FROM POWER UTILITIES TRANSITION PLANS?}}, institution = {Reclaim Finance}, year = {2024}, month = dec, url = {https://reclaimfinance.org/site/wp-content/uploads/2024/12/What-to-expect-from-power-utilities-transition-plans.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }