The power sector currently accounts for approximately one-third of the world’s carbon emissions. Its rapid transition from fossil fuels to renewables is fundamental to fast-tracking deep emissions reduction across all sectors, as decarbonisation of heating, industry, and transport will primarily be accomplished through electrification.
In the power sector, although state-owned power companies (SPC) own the majority of fossil fuel assets in many of the world’s top emitting countries, they also have advantages in investing in renewables and related infrastructure due to more accessible funds and resources. Consequently, engaging SPCs is crucial if we are to decarbonise the power sector and ultimately achieve net zero emissions. However, the nature of SPCs and their corresponding priorities have meant, to a certain extent, that they face more complicated decarbonisation chal-lenges than the private sector, in terms of governance and change management, for example.
Against this background, Agora Energiewende organised a workshop on SPC decarbonisation on 28–29 September 2022. Under the Chatham House Rule, experts who have started tackling these challenges for significant emitters discussed pressing issues relating to SPC governance, financing, just transition, incentives, and tools for decarbonisation.
This briefing report aims to raise awareness of the importance of SPCs for climate advocacy and explore politically feasible solutions for accelerating SPC decarbonisation at the international level. It also highlights potential areas for further research and multilateral collaboration on this topic.
