First, it was the Kyoto Protocol (2005), and then came the Paris Agreement (2015). Since then, international commitments and agreements have marked a path and a common goal that unites us all: The fight against climate change.
On 12 December 2015, at COP21 in Paris, a historic agreement was reached to combat climate change and accelerate and intensify action for a sustainable, low-carbon future. The Paris Agreement is the first universal and legally binding agreement, bringing all countries together in a common cause to undertake ambitious efforts to combat climate change.
The goal of climate neutrality on 12 December 2015 was intended to strengthen the global response to the threat of climate change and was an international challenge. With the main objective of limiting the increase in global temperature to 2ºC and the aspiration that it should not exceed 1.5ºC compared to the pre-industrial period, the Paris Agreement does not stop at setting the objective but sets out the steps to follow and the path to achieving it, and introduces the condition of carbon neutrality, which in the case of developed economies must be reached by 2050.
For Endesa, it represented an unprecedented challenge in terms of climate change, with setting ambitious climate change objectives that have marked the roadmap for establishing the company's strategy in the various strategic plans
Thanks to the company's great effort and commitment, in just eight years since the Paris Agreement came into force, Endesa has already reduced its emissions by 67% since 2015 and by more than 80% since 2005, when the Kyoto Protocol came into force. This milestone puts Endesa at the forefront of the fight against climate change and demonstrates the company's commitment to the present and future of our planet.
With the goal of being a NET Zero company by 2040, Endesa aims to have 100% renewable production by the same date.
"We are living in a critical moment, in which scientific evidence and ambition in the new climate objectives is leading to a comprehensive update of legislation, which undoubtedly affects all economic sectors. Companies should rise to the occasion and we need to make significant changes in our operations, driving forward very ambitious sustainable transformation plans for decarbonisation", said Jorge Pina, Endesa's Environmental Manager.
More ambition
This will be achieved on the basis of the company's new strategic plan for the 2024-2026 period, in a context of higher financial costs and inflation that may affect the pace of the economy's electrification. This situation, together with the necessary visibility on critical regulatory issues at the national and European level, has led the company to recalculate its future roadmap and refocus its pillars and strategies for growth.
For 2024-2026, Endesa's three strategic axes that emerged from this re-evaluation process are as follows: firstly, profitability and flexibility, with the external partners model and asset rotation already in progress, when deciding the destination of investments. Secondly, operational efficiency and effectiveness of operations, with greater cost control and maximisation of cash generation. Thirdly, financial and environmental sustainability.
All of this is fully compatible with the path towards the decarbonisation of the company's generation mix, while focusing the offer to domestic and business customers on value-added services and the supply of electricity from non-emitting sources.
The total investment envisaged in the new strategy for the Iberian Peninsula remains in line with the 2023-2025 plan, amounting to €8.9 billion. The allocation for Networks in this plan (€2 billion net) aimed at improving efficiency, resilience and digitisation is conditional on greater visibility over the 2026-2031 regulatory period in terms of remuneration for network investment.
Investment in renewables remains stable at €4.3 billion, to reach 13,900MW of renewable power at the end of the plan and thus arrive at 93% of emission-free production on the peninsula in 2026. A greater commitment to wind power, which will absorb 1,600MW (compared to 2,000MW for solar), while wind and hydroelectric repowering projects are the main new features compared to the previous plan.
The three flagship energy transformation projects that stand out as models of just transition, even with internationally recognised awards such as the one recently received in the category of renewable energies, integration and clean energy of the Energy Transition Changemakers in COP28, which is still being held in Dubai, are those of Andorra (Teruel), Pego (Portugal) and Galicia. The first two represent an investment of €1.7 billion and €700 million respectively, and will be operational in 2026-2027 and 2026. The third is a series of wind farms totalling 800MW and an investment of about €1 billion to be operational by 2025. These are financially sustainable energy transition projects in which Endesa aims to provide job opportunities for employees affected by activities that cease to be operational by supporting the personnel with training and developing the local economy with new sustainable economic activities for the future.
Endesa maintains the total coal phase-out in Spain by 2027, with the end of the Alcudia operation being maintained for security of supply reasons, and after managing to close its largest coal-fired plant (As Pontes) this year, which puts an end to the use of coal in its generation installations on the mainland. The company reconfirms that it will be fully decarbonised by 2040 when it will have fully abandoned the fossil gas business. The aim of all this is to comply with the Paris Agreement goal of 1.5ºC of temperature increase compared to the pre-industrial era.
About Endesa
Endesa is a leading electricity company in Spain and the second largest in Portugal. The company is also the second largest gas operator in the Spanish market. Endesa operates an end-to-end electricity generation, distribution and marketing business. Through Endesa X, it also offers value-added services aimed at the electrification of energy usage in homes, companies, industries and Public Administrations. It is also the leading operator of charging stations in Spain through Endesa X Way, a business line dedicated entirely to electric mobility. Endesa is firmly committed to the United Nations SDGs and strongly supports the development of renewable energies through Enel Green Power España, the digitalisation of grids through e-distribución and Corporate Social Responsibility (CSR). The Endesa Foundation is also active in CSR. Our workforce numbers around 9,260 employees. Endesa is a division of Enel, Europe’s largest electricity group.