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The U.S. Utilities Decarbonization Index

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The data in this infographic comes from the NPUC Annual Utility Decarbonization Report 2022

Infographic: The U.S. Utilities Decarbonization Index 2022

The U.S. Utilities Decarbonization Index

With the Biden administration targeting a zero-emissions power sector for the U.S. by 2035, how are the nation’s largest electric power providers faring in terms of decarbonization? 

Together, Visual Capitalist and our sponsor National Public Utilities Council have developed the Annual Utility Decarbonization Index. The index quantifies and compares the status of decarbonization among the 30 largest investor-owned utilities in the United States.

Decarbonization is quantified by scoring companies on six emissions-related metrics based on publicly available data from 2020 (the latest available).

Why the 30 Largest IOUs?

Why does the Decarbonization Index specifically look at the 30 largest IOUs by electricity generation? 

Well, these 30 utilities collectively generated around 2.3 billion megawatt hours (MWh) of electricity (including purchased power), making up over half of U.S. net electricity generation in 2020. Moreover, they also served over 90 million customers, accounting for roughly 56% of all electric customers in the country.

30 largest utilities in the U.S.

Therefore, it’s safe to say that the 30 largest IOUs have an important role in decarbonizing both the power sector and the U.S. economy. Since the residential, commercial, industrial, and agricultural sectors all use electricity, the decarbonization of utilities—the providers of electric power—can enable emissions reduction throughout the economy.

Decarbonization Index Methodology

For each of the six metrics used in the Decarbonization Index, utilities are scored on a scale of 1 (lowest) to 5 (highest), indicating whether they are trailing or leading, respectively. Scores for each metric are based on the range of figures for each metric divided into five equal buckets that the utilities fall into. 

For simplicity, let’s suppose that the lowest reported total emissions figure is zero metric tons of carbon dioxide (CO2) and the highest is 100 metric tons. In that case, companies that emit fewer than 20 metric tons of CO2 will receive the highest score of 5. Those that emit between 20 and 40 metric tons of CO2 will receive a 4, and so on.

A utility’s overall decarbonization score is an average of their scores across the six metrics, summarized below:

  1. Fuel Mix: The share of low-carbon sources (renewables, nuclear, and fuel cells) in the utility’s owned net electricity generation. We’ve assumed that the share of low-carbon sources can range from 0% to 100%, and scores are assigned based on that range.
  2. CO2 Emissions Intensity: The amount of CO2 emitted per megawatt-hour of owned and purchased electricity generation.
  3. Total CO2 Emissions: The sum of absolute CO2 emissions from owned and purchased electricity generation. While this overlooks the differing sizes of utilities, the rationale is that smaller unconsolidated utilities may find it easier to decarbonize than larger peers.
  4. CO2 Emissions per Capita: The amount of CO2 emitted from owned and purchased electricity generation per retail customer served in 2020.
  5. Decarbonization Goals: An evaluation of the utility’s interim greenhouse gas (GHG) emissions reduction goals and net-zero targets. The baseline for this is 50% GHG emissions reduction by 2030 and net-zero emissions by 2050 (utilities with baseline targets get a score of 2.5/5).
  6. Low-Carbon Investment: The share of planned capital expenditure (CAPEX) for electricity generation that is allocated to low-carbon sources. We’ve assumed that the share of CAPEX for low-carbon sources can range from 0% to 100%, and scores are assigned based on that range.

The data for these metrics comes from various sources including company sustainability reports, quantitative reporting templates from the Edison Electric Institute, and the Climate Disclosure Project’s Climate Change Questionnaire filings.

Explore all six metrics of the U.S. Utility Decarbonization Index

NPUC Annual Utility Decarbonization Report

Download The NPUC Annual Utility Decarbonization Report for free.

The Annual Utility Decarbonization Index 2022

Before looking at numbers, it’s important to note that the Decarbonization Index is relative and compares the 30 largest IOUs to each other. Therefore, a score of 5 does not indicate full decarbonization or net-zero emissions. Instead, it suggests that the utility is doing particularly well relative to its peers. 

With that in mind, here’s a look at the Annual Utility Decarbonization Index 2022: 

Rank
CompanyDecarbonization Score
#1Public Service Enterprise Group4.7
#2NextEra Energy Resources4.7
#3Pacific Gas and Electric4.5
#4Avangrid4.2
#5Exelon4.1
#6Portland General Electric3.7
#7Dominion Energy3.6
#8Florida Power and Light3.6
#9PNM Resources3.5
#10Alliant Energy3.4
#11Consolidated Edison3.4
#12Fortis Inc.3.4
#13American Electric Power3.3
#14Consumers Energy3.3
#15Evergy3.0
#16NRG Energy3.0
#17AES Corporation2.9
#18Xcel Energy2.9
#19WEC Energy2.9
#20DTE Energy2.8
#21Duke Energy2.8
#22Entergy2.8
#23TransAlta2.8
#24Emera2.7
#25Ameren2.6
#26Berkshire Hathaway Energy2.5
#27Oklahoma Gas & Electric Company2.4
#28Southern Company2.3
#29PPL Corporation2.2
#30Vistra Corp.2.0

A small number of companies did not report data on certain metrics and have been excluded from scoring for those metrics (denoted as N/A). In such cases, the decarbonization score is an average of five metrics instead of six.

Public Service Enterprise Group (PSEG), headquartered in New Jersey, tops this year’s rankings thanks to its low-emissions profile and ambitious climate goals. The company is aiming to achieve net-zero emissions from operations by 2030—five years ahead of the Biden Administration’s target and faster than any other utility on the list.

Tied with PSEG is NextEra Energy Resources, the clean energy-focused subsidiary of NextEra Energy. The company is the world’s largest producer of solar and wind power and generated 97% of its net electricity from low-carbon sources in 2020.

In third place is California’s largest utility, the Pacific Gas and Electric Company (PG&E). PG&E had the lowest emissions per capita of the 30 largest IOUs at 0.5 metric tons of CO2 per retail customer in 2020. That figure is significantly lower than the average of 11.5 metric tons across the 30 IOUs. 

Rounding out the top five are Avangrid, a renewables-focused U.S. subsidiary of the Spanish Iberdrola Group, and Exelon, the nation’s largest utility by number of retail customers. Avangrid had one of the cleanest fuel mixes with 87% of its owned net electricity coming from low-carbon sources. Exelon is the nation’s largest provider of emissions-free electricity, generating around 157 million MWh or 86% of its owned net electricity from nuclear power.

Download the Full Utility Decarbonization Report

While the Decarbonization Index provides a look at the current status of utility decarbonization, there’s much more to uncover in the full report, including:

  • The obstacles that utilities face on the path to decarbonization
  • The detailed data behind the six individual metrics
  • The U.S. utilities ESG report card
  • The solutions and strategies that can help accelerate decarbonization

Download the full report and find out everything you need to know about utility decarbonization.

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Climate

Mapped: 30 Years of Deforestation and Forest Growth, by Country

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Global Deforestation and Forest Growth over 30 Years

This was originally published on December 29, 2021, on Visual Capitalist.

Forests are the great carbon capturers of our planet, and they are a key source of wildlife habitats and vital resources for people around the world.

But deforestation is threatening this natural infrastructure, releasing carbon into the atmosphere while simultaneously reducing wildlife diversity and making our environment more susceptible to environmental disasters.

This graphic looks at global deforestation and forest growth over the past 30 years, mapping out the net forest change by country and region using data from the UN’s Food and Agriculture Organization (FAO).

The State of Deforestation by Region

Today, forests make up around 31% of the Earth’s total land area, spanning 15.68 million square miles (40.6 million km²). Over the past three decades, the world lost a bit more than 4% (685,300 square miles) of its forests, which equates to an area about half the size of India.

Europe and Asia were the only two regions which had significant overall forest growth during this time period, while Oceania saw no significant change and North and Central America saw a slight reduction.

RegionForest area change (1990-2020)Percentage change in forest area
Asia+146,718 sq mi+6.64%
Europe+88,803 sq mi+2.34%
Oceania+1,057 sq mi+0.0015%
North America and Central America-7,722 sq mi-0.34%
South America and the Caribbean-501,932 sq mi-13.30%
Africa-409,268 sq mi-14.29%
Global total-685,401 sq mi-4.19%

Source: UN Food and Agriculture Organization

Africa along with South America and the Caribbean were the regions with the greatest amount of net forest loss, both losing more than 13% of their forests over the past 30 years. This is largely because these two regions have large amounts of forest area available, with the underlying land in high demand for agriculture and cattle-raising.

Although the overall forest loss around the world is massive, the rate of forest loss has slowed down over the past three decades. While an average of 30,116 square miles were lost each year between 1990 to 2000, between 2010 to 2020 that number has dropped to 18,146 square miles, showing that the rate of overall loss has fallen by almost 40%.

The Countries and Drivers of Deforestation and Forest Growth

Despite an overall slowing down of forest loss, certain countries in South America along with the entirety of Africa are still showing an increase in the rate of forest loss. It’s in these regions where most of the countries with the largest reduction in forest area are located:

CountryNet change in forest area (1990-2020)Percentage change in forest area
Brazil-356,287 sq mi-15.67%
Indonesia-101,977 sq mi-22.28%
Democratic Republic of the Congo-94,495 sq mi-16.25%
Angola-48,865 sq mi-15.97%
Tanzania-44,962 sq mi-20.29%
Myanmar-41,213 sq mi-27.22%
Paraguay-36,463 sq mi-36.97%
Bolivia-26,915 sq mi-12.06%
Mozambique-25,614 sq mi-15.29%
Argentina-25,602 sq mi-18.84%

Source: UN Food and Agriculture Organization

Brazil, home to most of the Amazon rainforest, saw 356,287 square miles of net forest loss, largely fueled by farmers using the land to raise cattle for beef. It’s estimated that 80% of the deforested land area of the Amazon has been replaced with pastures, with the resulting beef production known to be among the worst meats for the environment in terms of carbon emissions.

The other great driver of deforestation is seed and palm oil agriculture. These oils account for about 20% of the world’s deforestation carbon emissions, and their production concentrated in Indonesia and Malaysia is now expanding to other Asian countries along with Africa.

While the demand for beef and palm oils drives deforestation, initiatives like the Central African Forest Initiative (CAFI) are providing incentives to protect forest land.

Select countries in the European Union along with the United Kingdom and South Korea have committed $494.7 million to six central African nations (Cameroon, Gabon, Central African Republic, Democratic Republic of the Congo, Equatorial Guinea, and the Republic of Congo) for them to preserve their forests and pursue low emission pathways for sustainable development. The initiative has seen $202 million transferred thus far and an anticipated reduction of 75 million tons of CO2 emissions.

Forests and the Climate Crisis

It’s estimated that forests absorb around 30% of the world’s carbon emissions each year, making them the greatest and most important carbon sinks we have on land. When you pair this with the fact that deforestation contributes around 12% of annual greenhouse gas emissions, the importance of forest preservation becomes even more clear.

But we often forget how much forests protect our environment by acting as natural buffers against extreme weather. Forests increase and ensure rainfall security, making nearby land areas significantly less susceptible to wildfires and natural droughts in hot and dry seasons along with flooding and landslides in wet seasons.

With every dollar invested in landscape restoration yielding up to $30 in benefits, reducing deforestation and investing in reforestation is considered an effective way to reduce the difficulty and costs of meeting climate and environmental protection goals. This is without even considering the benefits of maintaining the world’s largest wildlife habitat and source of species diversity, the home of the nearly 70 million indigenous people who live in forests, and the livelihood of 1.6 billion people who rely on forests every day.

Preserving and Regrowing Forests for the Future

Despite the short-term acceleration in forest loss seen in 2020, there have been positive signs about forest regrowth coming to light. A recent study found that previously deforested land can recuperate its soil fertility in about a decade, and layered plants, trees, and species diversity can recover in around 25-60 years.

Along with this, in some instances these regrowing “secondary forests” can absorb more carbon dioxide than “primary forests”, giving hope that a global reforestation effort can absorb more emissions than previously thought possible.

From better financial incentives for local farmers and ranchers to preserve forest area to larger scale policies and initiatives like CAFI, curbing deforestation and promoting reforestation requires a global effort. Reversing forest loss in the coming decades is a daunting but necessary step towards stabilizing the climate and preserving the environment that billions of animals and people rely on.

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Decarbonization

How Far Are We From Phasing Out Coal?

More carbon in the atmosphere is creating a hotter world—and gradually fuelling both climate change and instances of wildfires.

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How Far Are We from Phasing Out Coal?

This was originally published on April 28, 2022, on Elements.

At the COP26 conference last year, 40 nations agreed to phase coal out of their energy mixes.

Despite this, in 2021, coal-fired electricity generation reached all-time highs globally, showing that eliminating coal from the energy mix will not be a simple task.

This infographic shows the aggressive phase-out of coal power that would be required in order to reach net zero goals by 2050, based on an analysis by Ember that uses data provided by the International Energy Agency (IEA).

Low-Cost Comes at a High Environmental Cost

Coal-powered electricity generation rose by 9.0% in 2021 to 10,042 Terawatt-hours (TWh), marking the biggest percentage rise since 1985.

The main reason is cost. Coal is the world’s most affordable energy fuel. Unfortunately, low-cost energy comes at a high cost for the environment, with coal being the largest source of energy-related CO2 emissions.

China has the highest coal consumption, making up 54% of the world’s coal electricity generation. The country’s consumption jumped 12% between 2010 and 2020, despite coal making up a lower percentage of the country’s energy mix in relative terms.

Top Consumers2020 Consumption (Exajoules) Share of global consumption
China 🇨🇳82.354.3%
India 🇮🇳17.511.6%
United States 🇺🇸9.26.1%
Japan 🇯🇵4.63.0%
South Africa 🇿🇦3.52.3%
Russia 🇷🇺3.32.2%
Indonesia 🇮🇩3.32.2%
South Korea 🇰🇷3.02.0%
Vietnam 🇻🇳2.11.4%
Germany 🇩🇪1.81.2%

Together, China and India account for 66% of global coal consumption and emit about 35% of the world’s greenhouse gasses (GHG). If you add the United States to the mix, this goes up to 72% of coal consumption and 49% of GHGs.

How Urgent is to Phase Out Coal?

According to the United Nations, emissions from current and planned fossil energy infrastructure are already more than twice the amount that would push the planet over 1.5°C of global heating, a level that scientists say could bring more intense heat, fire, storms, flooding, and drought than the present 1.2°C.

Apart from being the largest source of CO2 emissions, coal combustion is also a major threat to public health because of the fine particulate matter released into the air.

As just one example of this impact, a recent study from Harvard University estimates air pollution from fossil fuel combustion is responsible for 1 in 5 deaths globally.

The Move to Renewables

Coal-powered electricity generation must fall by 13% every year until 2030 to achieve the Paris Agreement’s goals of keeping global heating to only 1.5 degrees.

To reach the mark, countries would need to speed up the shift from their current carbon-intensive pathways to renewable energy sources like wind and solar.

How fast the transition away from coal will be achieved depends on a complicated balance between carbon emissions cuts and maintaining economic growth, the latter of which is still largely dependent on coal power.

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