Renewable energy - electricity generation SDA

Methods
1

Hi there,

Apologies if I have missed this in any of the guidance documents, when setting an SDA target for electricity generation, is it acceptable to use zero gCO2/kWh for renewable energy, or should a value from an LCA be used such as 13gCO2/kWh?

Thanks
Vicky

2

Hi there - just wondering if there were any thoughts on the above query relating to renewable energy? Thanks!

3

Hi all, both approaches are acceptable. Many companies and FIs will use a zero value for their intensity metric if they are using RE and this is acceptable under the SDA method.
However, we also encourage as accurate data as possible and therefore you can use the LCA EFs for REs

4

Hi there,

I have a a follow up question on relating to Electricity Generation target. I see that on the SBTi form Elec Gen - Project finance targets, however no mention in the inclusion of Electricity generation targets using Corporate loans. Is the FI required to set two different targets, covering each of the asset classes (due to different attribution factors)? Or is a combined target allowed, considering a clear wording?
Any other guidance is much appreciated.

Thanks,
Ligia

5

Hi @Ligia,

As you can see in table 5.2 in the guidance (p.55), both corporate loans and project finance to electricity generation are mandatory, and targets should be set on the asset class level.

6

Hi Donald,

Thank you very much!

Following up on this topic still, I see that on the guidance it says “The emissions intensity trajectory of a project portfolio in the power sector shall continuously decline
from the base year toward the target level, even if the emissions are below the pathway benchmark.”(p.140)

However, how should we deal when a financial is expected to increase their emissions on the short team by investing in gas, for example, as a “bridge” to facilitate the energy transition? The increase would happen as currently most investments are in renewables leading to an extremely low baseline. Could you please shine some light on this?

Cheers,
Ligia

9

Hi Ligia,

A low emissions intensity maintenance target has been proposed for electricity generation project finance in draft Version 2 of the Near-Term Financial Sector SBT Guidance under certain conditions. This is to help accommodate FIs that have already achieved, at a portfolio level, the emissions intensity required to align with the 2030 sector intensity level in a 1.5°C pathway. Please see Section 5.4.1 and Appendix C for more details.

The proposed changes in draft Version 2 are up for public consultation so we welcome your feedback/questions on this document, and two other new documents, through the survey by Aug 14.