Climate change is one of the major challenges of the energy sector, with a vital role in this area, given that production technologies using fossil fuels have an important specific weight in greenhouse gas emissions. The main options available to face climate change from the energy sector are the promotion of renewable energies and the use of fossil fuels with lower carbon content in thermal production, in addition to improvement in generation, transport and final use of energy.
IBERDROLA’s strategy, based on significant development of renewable energy, mainly wind energy, and more environmentally-efficient thermal production technology (natural gas combined cycle power plants), has given rise to a production structure that allows IBERDROLA commit to its Policy against Climate Change [PDF] (approved at the end of 2009) link to continue to be among the largest energy companies with lesser CO2 emissions per GWh produced. IBERDROLA has set a concrete emission reduction goal and commits to levels at least 20% lower than the European energy sector in 2020.
IBERDROLA’S focus consists of four main pillars:
- An ambitious target on emissions reduction. As a power company, it is ideally placed to contribute towards this goal. In line with the strategy it has been implementing over the past decade, the Company proposes an efficient energy mix, based on renewable energy, efficient thermal, and nuclear.
- A global carbon trading system, based on regional market integration, capable of generating funds needed to finance clean energy development, both in industrialized and in developing countries.
- A far-reaching reform of the current financing system for developing countries, the so-called Clean Development Mechanism (CDM), in order to avoid distortions currently arising from a concentrating of funds in certain countries.
- The existence of government and regulatory support mechanisms to facilitate the implementation of these programs and help achieve the global targets.