Transition to net zero

CLP is decarbonising its existing asset base, investing in electricity infrastructure, ensuring the delivery of reliable and reasonably priced energy, and acting as a trusted partner for customers, communities, governments and investors in the transition to a just and fair energy future.

Investing in zero-carbon energy infrastructure

The continued scaling of existing infrastructure and the deployment of new energy assets is necessary to respond to rising electricity demand. CLP’s investments will ensure that future electrification will draw on efficient, zero-carbon sources. There are opportunities for further investment, such as nuclear energy, to make the energy infrastructure zero-carbon and more efficient.


As CLP progressively phases out its coal-fired power generation assets, the Company is directing investment towards zero-carbon streams of business, including renewable energy and energy services. In 2023, CLP continued to expand its renewable energy portfolio in Mainland China. Commercial operations began at the 50MW Xundian II wind farm in Yunnan province and the 73.7MW Gongdao solar plant in Jiangsu province, and construction commenced for the 150MW Bobai wind farm. These additional renewable assets are enabling customers to access a zero-carbon energy supply and are supporting the issuance of Green Electricity Certificates (GECs).

In India, Apraava Energy continued to build its renewable energy portfolios, securing preliminary grid connectivity for 300MW capacity at the Bijapur Grid Substation from the Aski wind project, and 250MW capacity from a solar power project organised by the National Hydroelectric Power Corporation (NHPC). Its 251MW Sidhpur wind farm in Gujarat state continues to progress, with an expected commission date in the first quarter of 2024. Apraava Energy has also entered into agreements to develop transmission lines and substation infrastructure that will support 20GW of renewable energy capacity in Rajasthan State in northern India. 

In Australia, EnergyAustralia announced its decarbonisation strategy and ambition with the launch of its Climate Transition Action Plan (CTAP) in August 2023. The major zero-carbon investment commitment is to expand the renewables generation and storage portfolio up to 3GW. As part of this commitment, EnergyAustralia signed new 10-year off-take agreements for energy storage services that allow market control over 90MW/180MWh of Edify Energy's batteries in New South Wales. These commenced operation in October 2023.

In addition, EnergyAustralia has stated that it will lower the total emissions level of Mount Piper by running it as a reserve or backup for renewables generation. It will retire the Yallourn power station and brown coal mine in mid-2028, resulting in a reduction of EnergyAustralia’s Scope 1 total emissions by over 60% on 2019–20 levels in 2028–2029.

Further information on EnergyAustralia’s Climate Transition Action Plan can be found on the EnergyAustralia website.

CLP continues its efforts in expanding the renewable energy portfolio. In 2023, the Group’s renewable energy portfolio, including equity capacity and long-term capacity and energy purchase arrangements, increased to 3,732MW, compared to 3,611MW in 2022 mainly due to the addition of the Bobai wind project. The renewable energy portfolio now sits at 64% wind energy, 23% solar and 13% hydro. While CLP has made strategic investments to reduce the carbon intensity of its baseload power generation, the Group's operating earnings from non-carbon assets have been growing in the last few years.

In expanding its renewable energy portfolio to address climate change, CLP recognises the importance of nuclear energy. COP28’s ‘Global Stocktake’ agreement recognised nuclear energy technology as one of the technologies that needs to be accelerated to achieve the goals of the Paris Agreement. This inclusion of nuclear energy marks a major reversal in the treatment of nuclear energy in the COP process. CLP has investments in two nuclear power stations in Guangdong province namely Daya Bay Nuclear Power Station and Yangjiang Nuclear Power Station. Around 80% of Daya Bay's electricity output is supplied to Hong Kong, meeting a quarter of Hong Kong’s electricity needs. This move aims to support the development of low-carbon energy in Mainland China and Hong Kong. In 2023, nuclear energy accounted for 32% of CLP’s fuel mix (natural gas 49%, coal 19%) in Hong Kong. To meet Hong Kong’s 2035 decarbonisation target, CLP will explore import of more nuclear energy and renewable energy in a manner that is acceptable to the community.

CLP’s investment in innovation aims to identify viable energy solutions for accelerating the low carbon transition and minimising environmental impacts. Through the Group Ventures & Research function, CLP is engaging in research partnerships and collaborating with leading utility companies, international organisations and research institutes. CLP also works closely with local Hong Kong universities on cutting-edge technology research projects. The CLP Research Fellowship Programme brings together research teams from two local universities to work on research into transport electrification and customers' energy consumption patterns. By working together with academic experts and industry leaders, CLP can leverage collective expertise and resources to drive innovation and find sustainable solutions to energy challenges.

As part of CLP's efforts in reducing GHG emissions, CLP continue to look for ways to improve the energy efficiency of its offices. For example, CLP's new Hong Kong Head office, due to open by the end of 2024, will incorporate energy-efficient and environmental design, including provision of electric vehicle (EV) chargers in all office parking spaces, rooftop photovoltaic (PV) panels and automatic curtain control system, etc. Located in the recently developed Kai Tak area, the office will also make use of the Government’s district cooling service. The centralised system utilises sea water to produce chilled water at the central plants and then distributes the chilled water to consumer buildings in the area. This is expected to reduce CLP's energy use and GHG footprint.

Reducing environmental impacts

Degradation of natural resources and ecosystems has significant impacts on the environment, human societies and economies. CLP is working to reduce its environmental impacts in the areas in which it operates, especially in relation to water, biodiversity and air pollution. It is also undertaking prudent management of the phase-out of coal-fired power plants, to meet tightening environmental regulations and increasing investor and societal expectations.


As a company with a long history of serving the community, CLP is committed to minimising the impact of its operations on the environment and is actively integrating the concepts of circular economy and biodiversity conservation into its operations and supply chain. This year, CLP conducted a biodiversity sensitive area analysis among its operational control assets with reference to the Taskforce on Nature-related Financial Disclosures (TNFD) Recommendations, as a starting point for forming a holistic nature-related strategy. In revising its Climate Vision 2050, CLP has recognised opportunities to significantly reduce air emissions as it phases out its coal-fired assets. To accelerate progress towards its medium- and long-term goals, CLP has revamped its group-wide air emission targets covering nitrogen oxides (NOx), sulphur dioxide (SO2) and particulate matters (PM).

Under CLP's Climate Vision 2050, one of the goals is on progressively phasing out coal for power generation by 2040. In Hong Kong, CLP Power and Hongkong Electric Co., Ltd. (HK Electric) joined hands to develop an offshore liquefied natural gas (LNG) terminal in Hong Kong waters utilising floating

storage and regasification unit (FSRU) technology. This offshore LNG terminal entered service and received its first LNG cargo in July 2023. This new piece of infrastructure enhances the security of natural gas supply for Hong Kong's energy transition. Natural gas is not only a lower-carbon fuel option than coal but also generates fewer air pollutants in the combustion process, the LNG terminal will contribute to the improvement of Hong Kong's air quality.

As part of its emission reduction plan, CLP has been implementing various air emission control measures with advanced emissions reduction technology in its fossil fuel plants such as deploying the new 600MW combined-cycle gas turbine D2 generation unit at Black Point Power Station as well as using a combination of Electrostatic Precipitator (ESP) and Fabric Filter to further reduce PM emissions at Jhajjar Power Station.

For details of the above initiatives, please refer to the Respecting Nature section.

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