THE CLIMATE STRATEGY PURSUED
ENGIE has set a goal of reaching Net Zero Carbon
(1)
throughout its entire value chain (scope 1, 2 and 3)
by 2045, following a well-below 2°C trajectory certified by the Science Based Target initiative (SBTi) in
February 2023. In this way, the Group is reducing its direct and indirect greenhouse gases (GHG) emissions
by at least 90% compared with 2017
(2)
. At the same time, it plans to work on the development of
carbon sinks in order to neutralize its residual emissions over the long term and thus contribute at the
right level to planetary carbon neutrality. The Group is also committed to supporting its customers in
the reduction of their GHG emissions in order to accelerate the decarbonization of its own value chain.
ENGIE’S VISION FOR THE ENERGY
TRANSITION IN EUROPE
Given the prevailing uncertainty regarding
the evolution of the energy mix,
public policies and the development of
the sectors, ENGIE is building different
scenarios for Europe’s energy future.
Each scenario quantifies the volumes
and prices of the main commodities
(electricity, gas, coal, hydrogen, oil and
CO
2
) of the 19 main European energy
markets between 2023 and 2050.
The reference decarbonization trajectory
chosen by ENGIE focuses on a balanced
mix, in which renewable gases along
with electrification of usages all have
their benefits, in order to guarantee the
best levels of efficiency and resilience
of the energy system. In addition,
energy sufficiency and efficiency are
an integral part of the efforts to reduce
GHG emissions.
Studies carried out by the Group
for the European scope have shown
that large-scale electrification would
generate additional costs of more
than 15% by 2050 and would result in
increased vulnerability of the electricity
system. The Group also believes that the
use of a wider range of decarbonization
options puts energy system players
in a better position to benefit from
technological progress and meet
the needs of flexibility inherent to the
energy market. It would also reduce
the economic and political pressure on
electricity infrastructures (new lines to
be built, acceptability of decarbonized
production assets, whether it is wind,
solar or nuclear).
Different gases will contribute to
the energy system of tomorrow.
Biomethane, the first contributor, is part
of a circular economy, decentralized
solutions and creates local jobs.
It can be injected into all existing
networks without adaptation.
Renewable hydrogen produced by
electrolysis from renewable energy
sources will be key to decarbonizing
high-temperature industrial processes
and heavy transport.
Finally, synthetic methane will complete
the possible solutions. More details on
the role of renewable gases can be found
in the “renewable gases” notebook.
ENGIE SCENARIO FOR GREENING NATURAL GAS IN EUROPE
EU19 METHANE DEMAND TWh HHV
Buildings
Industry other Elec prod
Transport
5000
4000
3000
2000
1000
0
2050 2040 2025 2045 2030 2035 2020
T W h H H V
4 This chart tracks methane demand only It should be noted that ENGIEs reference decarbonization scenario integrates hydrogen for approximately 1000 TWh HHV
in 2050 excluding eCH
4
ENGIE’s strategy to decarbonize its value chain is based on three pillars (Reduce, Avoid and Remove) in line
with the methodological framework of the Net Zero Initiative:
(3)
ENGIE’s 2045 Net Zero Carbon target
Reduce ENGIE’s GHG emissions
First, reduce the direct and indirect GHG
emissions resulting from ENGIE’s activities
by at least 90% compared compared to 2017
Remove carbon from the atmosphere
Then, increase carbon sinks to neutralize
the last residual emissions that are
the most difficult to abate.
Avoid customers’ GHG
emissions through ENGIE’s
solutions
Support customers’
decarbonization so that they can
reduce their GHG emissions.
(1) Definition of the SBTi’s Net Zero standard (2) Baseline year for ENGIE’s climate targets defined with the SBTi
(3) Carbone 4 initiative supported by ADEME
Biomethane Natural gas unabated
Local eCH
4
eCH
4
imports NGCCS
2050 2040 2025 2045 2030 2035 2020
EU19 METHANE SUPPLY TWh HHV
4
5000
4000
3000
2000
1000
0
T W h H H V
66 - CLIMATE NOTEBOOK