The 2024 Utility Decarbonization Index

Electric utilities and the power sector in the U.S. are crucial for averting the climate crisis, especially as electricity demand rises. But how do the nation’s largest electricity producers compare on the necessity of decarbonization?

In partnership with the National Public Utilities Council, we present the 2024 edition of our Annual Utility Decarbonization Index. The index uses the latest available data to track the decarbonization progress of the 47 largest investor-owned utilities (IOUs) in the United States.

The Index Ranking

The 47 IOUs featured in the Index are the largest private electricity producers in the U.S., accounting for over two-thirds of the nation’s electricity generation in 2022. As a result, these utilities’ decarbonization efforts will significantly impact the 33% of U.S. emissions that come from the power sector.

A score of five signifies that the utility is a leader in decarbonization compared to its peers. It does not mean that the utility has fully decarbonized or achieved net-zero emissions.

Here are the top 10 IOUs in this year’s ranking:

After placing fourth last year, Pacific Gas and Electric is now #1 in the Annual Utility Decarbonization Index, thanks to significant improvements in fuel mix and emissions per customer.

The second and third-place utilities in this year’s Index, Avangrid and Public Service Enterprise Group, also greatly improved their emissions per customer figures from 2021–2022.

How Does it Work?

The Decarbonization Index uses the following six metrics to compare the current environmental efforts of the largest investor-owned utilities:

1. Fuel Mix
   The share of carbon-free sources such as nuclear and renewables in a company’s owned generation mix.
2. CO₂ Emissions Intensity
   The amount of CO₂ emitted per megawatt-hour of electricity generated and purchased.
3. Total CO₂ Emissions
   Absolute CO₂ emissions from owned and purchased electricity generation.
4. CO₂ Emissions Per Customer
   CO₂ emissions from owned and purchased electricity generation per customer.
5. Decarbonization Goals
   An evaluation of a company’s interim greenhouse gas reduction goal, ultimate net-zero target, and reported progress. 
6. Carbon-Free Investment
   The share of planned capital expenditure (CAPEX) for electricity generation allocated to carbon-free sources.

All 47 IOUs in the Decarbonization Index are scored on a scale of 0-5 for each of the six metrics. A utility’s final decarbonization score is the average of the six metrics.

The 2024 report assigns a score of zero where numbers are unreported to emphasize the importance of sustainability reporting.

In previous years, companies that did not report data for certain calculations were excluded from that metric, and their total decarbonization score was an average of five or fewer metrics, as opposed to all six.

Data for the index was pulled from company sustainability reports, quantitative ESG reporting templates from the Edison Electric Institute, and the Climate Disclosure Project’s Climate Change Questionnaire filings.

Download the 2024 Annual Utility Decarbonization Report

In addition to the Decarbonization Index, there’s much more, including:

• Inflation Reduction Act impacts
• Costs of renewables
• Year-to-year progression from the previous index
• Fuel mix rankings for the largest public utilities
• Gas utility emissions rankings

Are you interested in seeing the rest of the rankings? Download the 2024 NPUC Annual Utility Decarbonization Report and find out everything you need to know about the clean energy transition of the U.S. power sector.

Visualized: Emission Reduction Targets by Country in 2024

Since 2021, another 40 countries have established climate goals for 2030. However, the path to net zero remains uneven.

With average national warming already 1.81°C above pre-industrial levels, the international pressure for countries to cut emissions faster and deeper is mounting. So where do countries stand today on their targets?

We’ve partnered with the National Public Utilities Council to answer just this question, using the latest national emission target data from Net Zero Tracker.

A Spotlight on Major Players

The largest countries and richest economies typically emit the most greenhouse gases and thus have the most crucial targets.

The United States has an interim goal of a 50-52% reduction in emissions below 2005 levels by 2030, with a net zero target set for 2050.

Their primary economic rival, China, is focused on peaking its CO₂ emissions by 2030 instead of reducing them. Their net zero target, on the other hand, is currently set for 2060.

The European Union requires all 27 member states to reduce emissions 55% by 2030, with a net-zero goal for 2050.

Australia, which is among the top emitters per capita because of its fossil fuel usage, aims to reduce emissions by 43% from 2005 levels by 2030, while their net zero target is set for 2050.

Ambitious Climate Leaders and Laggards

While Comoros, Bhutan, Gabon, Suriname, and Guyana claim to have already achieved net zero, several major countries lack commitment.

Russia, one of the world’s largest polluters, has a net zero target set for 2060. Several other top-emitting countries, such as India and Indonesia, have net zero targets that also do not meet the Paris Climate Accord timeline of net zero by 2050. Their net-zero commitments are targeted at 2070 and 2060, respectively.

Iran is the only one of the top 10 largest emitting nations without a net zero target. However, it has an interim target of reducing emissions 3.45% by 2030.

Finland leads all countries with a legally binding net zero target set for the ambitious year 2035. Germany, a more populous nation, is also topping the Paris Climate Accord timeline, enshrining its net zero target into law for 2045.

The global race to net zero is ongoing, with countries at various stages of commitment. While significant progress has been made, many of the world’s largest emitters have yet to commit to net zero emission goals aligned with the Paris Climate Accord.