Utilities commit to net-zero carbon emissions
Praxis encourages continued movement toward renewable energy
The utilities American Electric Power (AEP) and AES Corp. have made recent net-zero carbon emission commitments.
AEP has committed to net-zero carbon emissions by 2050, with an interim goal to cut emissions 80% from 2000 levels by 2030. The company plans to grow its renewable energy capacity by 50% by 2030. AEP is also a leader in smart grid solutions, helping customers optimize their energy efficiency and advocating for wider usage of electric vehicles.
AES has set targets to achieve net-zero carbon emissions from electricity sales by 2040 and all business scopes by 2050. It will add 3,000-4,000 megawatts of renewable energy in 2021 alone. By 2025, less than 10% of AES’ power will be from coal-fired generation.
Both companies cite the Paris Agreement goal to limit the average rise in global temperatures to less than 2°C above pre-industrial levels as guidance for these commitments.
Utilities account for 30% of all US greenhouse gas emissions and represent significant opportunities for the transition to low-carbon energy sources.
Praxis is invested in AEP and AES through the Praxis Value Index Fund and has been communicating with both companies on climate change issues for several years. Discussions have included emissions reductions plans, renewable energy deployment, and climate scenario reporting. We applaud their commitments to a cleaner future.