SBTi definition of Renewable Energy

Criteria
1

Hello, I apologise if I have missed this but I have been through the various SBTi documentation and searched through this forum but have been unable to locate a specific definition for ‘renewable energy’, this may sound daft but what is actually considered to be renewable for example nuclear can technically sit in both camps as a fuel source is required despite that not being fossil fuel based so if possible could anybody point me in the direction of a recognised definition.

2

Hi Mike,

Thanks for posting! We currently would use the same definition of renewable energy as the RE100 initiative.

Thanks,
Howard

3

Dear Howard and MikeDiamond

thank you for this helpful thread. However, RE100 defines “Renewable Energy” not by an intensity metric but rather by energy sources:
Wind;
• Solar;
• Geothermal;
• Sustainably sourced biomass (including biogas); and
• Sustainable hydropower.

In this post by Eoin from Apr22 it is mentioned, that nuclear energy is considered “renewable” due to its low emission intensity.

Since we are currently a Situation where our portfolio for “Corporate Loan for electricity generation” has a very low emission intensity already: (0,019 tCO2e/MWh) (but there is some “non renewable according to RE100” gas peakers in the portfolio) we were wondering whether this is now considered:

  1. Already renewable due to it’s low emissions intensity → therefore we set a maintenance target
  2. Is not considered renewable → therefore we set a “normal SDA”

Any help on this question would be highly appreciated. I am looking forward to hearing from you.

  • Frenky
4

@HowardS - is there any chance to receive an update to this question? We are already in a phase where we would like to submit our targets and we would really appreciate guidance on this issue.

We are currently arguing, that a “normal SDA” would not make much sense in our current situation. Mainly due to the fact, the an additional reduction of 73,6% until 2030 (target year) would not even be realisticly reachable with only investments in renewable energy producers (by RE100 defition).
We are therefore opting for the “maintenancy target” option.

5

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.