Decarbonization
The 2024 Utility Decarbonization Index
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:
Rank | Company | Decarbonization Score |
---|---|---|
#1 | Pacific Gas and Electric | 4.6 |
#2 | Avangrid | 4.2 |
#3 | Public Service Enterprise Group | 4.1 |
#4 | NextEra Energy | 3.7 |
#5 | Dominion Energy | 3.6 |
#6 | American Electric Power | 3.4 |
#7 | Emera | 3.4 |
#8 | Fortis | 3.3 |
#9 | Sempra | 3.3 |
#10 | Constellation Energy | 3.3 |
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:
- Fuel Mix
The share of carbon-free sources such as nuclear and renewables in a company’s owned generation mix. - CO2 Emissions Intensity
The amount of CO2 emitted per megawatt-hour of electricity generated and purchased. - Total CO2 Emissions
Absolute CO2 emissions from owned and purchased electricity generation. - CO2 Emissions Per Customer
CO2 emissions from owned and purchased electricity generation per customer. - Decarbonization Goals
An evaluation of a company’s interim greenhouse gas reduction goal, ultimate net-zero target, and reported progress. - 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.
Learn how the National Public Utilities Council is working toward the future of sustainable electricity.
Decarbonization
Visualized: Emission Reduction Targets by Country in 2024
This infographic shows the greenhouse gas emissions targets of all countries and their target years with data from Net Zero Tracker.
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.
Country | End Target | End Target Year | New Commitment |
---|---|---|---|
Benin | Net zero | 2000 | Achieved |
Bhutan | Carbon negative | 2030 | Achieved |
Comoros | Net zero | 2050 | Achieved |
Gabon | Carbon neutral(ity) | 2050 | Achieved |
Guyana | Net zero | 2050 | Achieved |
Suriname | Net zero | 2050 | Achieved |
Albania | Emissions reduction target | 2030 | Not legally binding |
Algeria | Reduction v. business-as-usual (BAU) | 2030 | Not legally binding |
Barbados | Carbon neutral(ity) | 2030 | Not legally binding |
Belarus | Emissions reduction target | 2030 | Not legally binding |
Botswana | Emissions reduction target | 2030 | Not legally binding |
Brunei | Emissions reduction target | 2030 | Not legally binding |
Cameroon | Reduction v. BAU | 2030 | Not legally binding |
Congo | Reduction v. BAU | 2030 | Not legally binding |
Côte d'Ivoire | Reduction v. BAU | 2030 | Not legally binding |
Cuba | Other | 2030 | Not legally binding |
Czech Republic | Emissions reduction target | 2030 | In law |
Dominica | Carbon neutral(ity) | 2030 | Not legally binding |
Egypt | Other | 2030 | Not legally binding |
El Salvador | Absolute emissions target | 2030 | Not legally binding |
Eswatini | Reduction v. BAU | 2030 | Not legally binding |
Guatemala | Emissions reduction target | 2030 | In law |
Honduras | Reduction v. BAU | 2030 | Not legally binding |
Iran | Other | 2030 | In law |
Iraq | Other | 2030 | Not legally binding |
Jamaica | Emissions reduction target | 2030 | Not legally binding |
Jordan | Reduction v. BAU | 2030 | Not legally binding |
Kenya | Reduction v. BAU | 2030 | Not legally binding |
Liechtenstein | Emissions reduction target | 2030 | Not legally binding |
Macedonia | Emissions reduction target | 2030 | Not legally binding |
Maldives | Net zero | 2030 | In law |
Mauritania | Carbon neutral(ity) | 2030 | Not legally binding |
Mexico | Reduction v. BAU | 2030 | Not legally binding |
Moldova | Emissions reduction target | 2030 | Not legally binding |
Mongolia | Emissions reduction target | 2030 | Not legally binding |
Montenegro | Emissions reduction target | 2030 | Not legally binding |
Morocco | Reduction v. BAU | 2030 | Not legally binding |
North Korea | Reduction v. BAU | 2030 | Not legally binding |
Paraguay | Reduction v. BAU | 2030 | Not legally binding |
Philippines | Reduction v. BAU | 2030 | Not legally binding |
Poland | Emissions reduction target | 2030 | Not legally binding |
Qatar | Emissions reduction target | 2030 | Not legally binding |
San Marino | Emissions reduction target | 2030 | Not legally binding |
Serbia | Emissions reduction target | 2030 | In law |
Tajikistan | Emissions reduction target | 2030 | Not legally binding |
Turkmenistan | Emissions reduction target | 2030 | Not legally binding |
Uzbekistan | Emissions intensity target | 2030 | Not legally binding |
Venezuela | Emissions reduction target | 2030 | Not legally binding |
Zimbabwe | Emissions reduction target | 2030 | Not legally binding |
Bermuda | Other | 2035 | Not legally binding |
Finland | Climate neutral | 2035 | In law |
Antigua and Barbuda | Net zero | 2040 | Not legally binding |
Austria | Climate neutral | 2040 | In law |
Cayman Islands | Other | 2040 | Not legally binding |
Iceland | Carbon neutral(ity) | 2040 | In law |
Myanmar | Net zero | 2040 | Not legally binding |
Palestine | Other | 2040 | Not legally binding |
Denmark | Net zero | 2045 | Not legally binding |
Germany | Climate neutral | 2045 | In law |
Nepal | Net zero | 2045 | Not legally binding |
Sweden | Net zero | 2045 | In law |
Afghanistan | Net zero | 2050 | Not legally binding |
Andorra | Carbon neutral(ity) | 2050 | Not legally binding |
Angola | Net zero | 2050 | Not legally binding |
Argentina | Net zero | 2050 | Not legally binding |
Armenia | Climate neutral | 2050 | Not legally binding |
Australia | Net zero | 2050 | In law |
Azerbaijan | Emissions reduction target | 2050 | Not legally binding |
Bangladesh | Net zero | 2050 | Not legally binding |
Belgium | Carbon neutral(ity) | 2050 | Not legally binding |
Belize | Net zero | 2050 | Not legally binding |
Bosnia and Herzegovina | Emissions reduction target | 2050 | Not legally binding |
Brazil | Carbon neutral(ity) | 2050 | Not legally binding |
Bulgaria | Net zero | 2050 | Not legally binding |
Burkina Faso | Net zero | 2050 | Not legally binding |
Burundi | Net zero | 2050 | Not legally binding |
Cambodia | Carbon neutral(ity) | 2050 | Not legally binding |
Canada | Net zero | 2050 | In law |
Cape Verde | Net zero | 2050 | Not legally binding |
Central African Republic | Net zero | 2050 | Not legally binding |
Chad | Net zero | 2050 | Not legally binding |
Chile | Carbon neutral(ity) | 2050 | In law |
Colombia | Carbon neutral(ity) | 2050 | In law |
Cook Islands | Carbon neutral | 2050 | Not legally binding |
Costa Rica | Net zero | 2050 | Not legally binding |
Croatia | Climate neutral | 2050 | In law |
Cyprus | Climate neutral | 2050 | In law |
Democratic Republic of the Congo | Net zero | 2050 | Not legally binding |
Djibouti | Net zero | 2050 | Not legally binding |
Dominican Republic | Net zero | 2050 | Not legally binding |
Ecuador | Zero carbon | 2050 | Not legally binding |
Equatorial Guinea | Emissions reduction target | 2050 | Not legally binding |
Eritrea | Net zero | 2050 | Not legally binding |
Estonia | Zero emissions | 2050 | Not legally binding |
Ethiopia | Net zero | 2050 | Not legally binding |
European Union | Climate neutral | 2050 | In law |
Fiji | Net zero | 2050 | In law |
France | Net zero | 2050 | In law |
Georgia | Climate neutral | 2050 | Not legally binding |
Greece | Climate neutral | 2050 | In law |
Grenada | Net zero | 2050 | Not legally binding |
Guinea | Net zero | 2050 | Not legally binding |
Guinea-Bissau | Net zero | 2050 | Not legally binding |
Haiti | Net zero | 2050 | Not legally binding |
Hungary | Net zero | 2050 | In law |
Ireland | Climate neutral | 2050 | In law |
Israel | Net zero | 2050 | Not legally binding |
Italy | Carbon neutral(ity) | 2050 | Not legally binding |
Japan | Carbon neutral(ity) | 2050 | In law |
Kiribati | Net zero | 2050 | Not legally binding |
Kyrgyzstan | Carbon neutral(ity) | 2050 | Not legally binding |
Laos | Net zero | 2050 | Not legally binding |
Latvia | Carbon neutral(ity) | 2050 | Not legally binding |
Lebanon | Net zero | 2050 | Not legally binding |
Lesotho | Net zero | 2050 | Not legally binding |
Liberia | Net zero | 2050 | Not legally binding |
Lithuania | Net zero | 2050 | Not legally binding |
Luxembourg | Net zero | 2050 | In law |
Madagascar | Net zero | 2050 | Not legally binding |
Malawi | Net zero | 2050 | Not legally binding |
Malaysia | Net zero | 2050 | Not legally binding |
Mali | Net zero | 2050 | Not legally binding |
Malta | Climate neutral | 2050 | Not legally binding |
Marshall Islands | Net zero | 2050 | Not legally binding |
Mauritius | Net zero | 2050 | Not legally binding |
Micronesia | Net zero | 2050 | Not legally binding |
Monaco | Carbon neutral(ity) | 2050 | Not legally binding |
Mozambique | Net zero | 2050 | Not legally binding |
Namibia | Net zero | 2050 | Not legally binding |
Nauru | Net zero | 2050 | Not legally binding |
Netherlands | Emissions reduction target | 2050 | In law |
New Zealand | Net zero | 2050 | In law |
Nicaragua | Net zero | 2050 | Not legally binding |
Niger | Net zero | 2050 | Not legally binding |
Niue | Net zero | 2050 | Not legally binding |
Norway | Emissions reduction target | 2050 | In law |
Oman | Net zero | 2050 | Not legally binding |
Pakistan | Net zero | 2050 | Not legally binding |
Palau | Net zero | 2050 | Not legally binding |
Panama | Net zero | 2050 | Not legally binding |
Papua New Guinea | Net zero | 2050 | Not legally binding |
Peru | Net zero | 2050 | Not legally binding |
Portugal | Carbon neutral(ity) | 2050 | In law |
Romania | Net zero | 2050 | Not legally binding |
Rwanda | Net zero | 2050 | Not legally binding |
Saint Kitts and Nevis | Net zero | 2050 | Not legally binding |
Saint Lucia | Net zero | 2050 | Not legally binding |
Saint Vincent and the Grenadines | Net zero | 2050 | Not legally binding |
Samoa | Net zero | 2050 | Not legally binding |
Sao Tome and Principe | Net zero | 2050 | Not legally binding |
Senegal | Net zero | 2050 | Not legally binding |
Seychelles | Net zero | 2050 | Not legally binding |
Sierra Leone | Net zero | 2050 | Not legally binding |
Singapore | Net zero | 2050 | Not legally binding |
Slovakia | Net zero | 2050 | In law |
Slovenia | Net zero | 2050 | Not legally binding |
Solomon Islands | Net zero | 2050 | Not legally binding |
Somalia | Net zero | 2050 | Not legally binding |
South Africa | Net zero | 2050 | Not legally binding |
South Korea | Net zero | 2050 | In law |
South Sudan | Net zero | 2050 | Not legally binding |
Spain | Climate neutral | 2050 | In law |
Sri Lanka | Carbon neutral(ity) | 2050 | Not legally binding |
Sudan | Net zero | 2050 | Not legally binding |
Switzerland | Net zero | 2050 | In law |
Tanzania | Net zero | 2050 | Not legally binding |
The Bahamas | Net zero | 2050 | Not legally binding |
The Gambia | Net zero | 2050 | Not legally binding |
Timor-Leste | Net zero | 2050 | Not legally binding |
Togo | Net zero | 2050 | Not legally binding |
Tonga | Net zero | 2050 | Not legally binding |
Trinidad and Tobago | Net zero | 2050 | Not legally binding |
Tunisia | Carbon neutral(ity) | 2050 | Not legally binding |
Tuvalu | Net zero | 2050 | Not legally binding |
Uganda | Net zero | 2050 | Not legally binding |
United Arab Emirates | Net zero | 2050 | Not legally binding |
United Kingdom | Net zero | 2050 | In law |
United States of America | Net zero | 2050 | In law |
Uruguay | Net zero | 2050 | Not legally binding |
Vanuatu | Net zero | 2050 | Not legally binding |
Vatican City | Carbon Neutral | 2050 | Not legally binding |
Vietnam | Net zero | 2050 | Not legally binding |
Yemen | Net zero | 2050 | Not legally binding |
Zambia | Net zero | 2050 | Not legally binding |
Bahrain | Net zero | 2060 | Not legally binding |
China | Carbon neutral(ity) | 2060 | Not legally binding |
Indonesia | Net zero | 2060 | Not legally binding |
Kazakhstan | Carbon neutral(ity) | 2060 | Not legally binding |
Kuwait | Carbon neutral(ity) | 2060 | Not legally binding |
Russian Federation | Carbon neutral(ity) | 2060 | Not legally binding |
Saudi Arabia | Net zero | 2060 | Not legally binding |
Türkiye | Net zero | 2053 | Not legally binding |
Ukraine | Carbon neutral(ity) | 2060 | Not legally binding |
Ghana | Net zero | 2070 | Not legally binding |
India | Net zero | 2070 | Not legally binding |
Nigeria | Net zero | 2070 | In law |
Thailand | Net zero | 2065 | Not legally binding |
Bolivia | No target | N/A | None |
Libya | No target | N/A | None |
Syrian Arab Republic | No target | N/A | None |
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.
Decarbonization
Visualized: The Price of Carbon Around the World in 2024
This bar chart shows the varying prices of carbon across different economies around the globe, using data from the World Bank.
Visualized: The Price of Carbon Around the World
Only 1% of global emissions are priced high enough to meet the Paris Agreement’s temperature target in 2024.
This chart, created in partnership with the National Public Utilities Council, shows carbon prices around the world using data from the World Bank.
Let’s start by looking at what carbon pricing is and how it works.
What Is Carbon Pricing?
Carbon pricing is an environmental strategy aimed at reducing greenhouse gas emissions by assigning a monetary cost to carbon emissions.
The most common types of carbon pricing are emissions trading systems (ETS) and carbon taxes. The former sets an overall emission limit and allocates permits for trading, whereas the latter imposes a fee on emissions to increase their cost and incentivize reductions.
According to the World Bank, Finland and Poland were the first countries to implement a federal carbon price in 1990. The most recent countries, on the other hand, were Australia, Hungary, and Indonesia, implementing carbon pricing in 2023.
Carbon Prices, By Region
In 2017, the Carbon Pricing Leadership Coalition suggested that carbon prices should range from $50–100/tCO2 by 2030 to meet the Paris Climate Agreement’s temperature goal.
Fast forward to 2024, the global average carbon price is $32/tCO2—$18 short of the minimum that is needed in six years.
Carbon pricing varies significantly across different regions. Europe and Central Asia have the highest number of pricing initiatives out of any other world region, with an average price of $50.
In the U.S. and Canada, the average price is slightly lower at $48 per ton, with 16 initiatives in place. North America’s approach is characterized by both federal and state/provincial systems, including notable schemes like Canada’s federal carbon pricing and the Regional Greenhouse Gas Initiative in the United States.
Region | Average Carbon Price | Number of Initiatives |
---|---|---|
Europe & Central Asia | $50 | 26 |
U.S. & Canada | $48 | 16 |
Latin America & Caribbean | $24 | 11 |
East Asia & Pacific | $11 | 18 |
Africa | $10 | 1 |
The European Union’s ETS system was introduced in 2005. The initiative led to a 16% decrease in covered emissions between 2022 and 2023 and generated $47 billion. Several EU member countries have also implemented their own carbon pricing mechanisms to address sectors outside the EU ETS’s scope or to generate domestic revenue.
While there are notable efforts made in Europe, Central Asia, and North America, the highest carbon tax in the world belongs to Uruguay at $167/tCO2. According to the World Bank, Uruguay’s GDP per capita is $20,795, which is significantly lower than other countries with Paris Agreement-aligned carbon pricing.
Despite these differing initiatives, the global average carbon price still lags behind the levels needed to achieve the Paris Agreement targets, emphasizing the critical need for more robust and widespread adoption of carbon pricing to drive meaningful climate action.
Learn how the National Public Utilities Council is working toward the future of sustainable electricity.
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