CLP is standing at the threshold of a transformative era. As we move into 2024, we remain resolute in our mission for an orderly transition to a net-zero future, while ensuring we maintain a secure and reliable energy supply. We also remain committed to empowering a future-ready workforce, and to delivering cutting-edge energy solutions that will meet the evolving needs of our customers and drive positive change in the communities where we operate.
Transitioning to net zero
Decarbonisation stands as the foremost priority for our business and Climate Vision 2050, our blueprint for achieving net-zero greenhouse gas emissions (GHG) by mid-century, remains the cornerstone of our strategy. In 2023, we embarked on a review to make sure that this blueprint stays aligned with developments in the business as well as the external risks and uncertainties we face.
We have decided to strengthen our 2030 GHG emissions intensity target to more closely align with the international climate goal of limiting global warming to 1.5°C while also taking into account our operating context. This reflects our efforts to increase our pace of transition between now and 2030. We also pledged to maintain our prior targets and commitments including phasing out coal before 2040. Our strategy is in line with the declaration from the COP28 international climate talks to transition away from fossil fuels.
In 2023, we further lowered our GHG emissions intensity and continued to expand our renewable energy portfolio. By 2030, we envision a CLP Group portfolio which entails around 60% of non-carbon power generation and energy storage, reducing coal down to approximately 20%, subject to market and regulatory developments. This will be a significant shift for CLP.
EnergyAustralia announced its inaugural Climate Transition Action Plan (CTAP) in August 2023, including a new commitment to work with partners to expand its renewable portfolio with up to 3GW to be committed or operational by 2030. In India, Apraava Energy's Scope 1 and 2 GHG emissions intensity reduction target was validated by the Science Based Targets initiative (SBTi), aligning with the goal of limiting global warming to 1.5°C above pre-industrial levels.
In line with the latest developments at COP28, we also recognise the indispensable role of nuclear energy in fulfilling the objective of aligning with a 1.5°C pathway. Looking ahead, we will continue to engage Government and explore the import of more nuclear and renewable energy for the Hong Kong grid.
Tapping into growth opportunities
As the energy sector undergoes transformative changes, we are embracing innovation and adopting advanced technologies to meet the evolving energy needs of our customers and the wider community. In Hong Kong, we were pleased with the Hong Kong SAR Government’s approval of our five-year Development Plan, a milestone agreement that fortifies our commitment to meeting the energy demands essential for the city’s long-term development. In the plan, we have committed ourselves to a range of investments designed to bolster economic growth, support ongoing decarbonisation and reinforce Hong Kong’s position as a smart, vibrant and resilient city.
We are also accelerating the provision of a wide range of integrated Energy-as-a-Service (EaaS) solutions to customers in Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). CLP achieved a milestone in corporate partnerships by signing a strategic cooperation framework agreement with Shui On Xintiandi, in which CLP will supply renewable energy from Yangzhou Gongdao Solar Power Station to Shui On's Nanjing International Finance Center commercial and office complex through a 10-year power purchase agreement. It marked CLP's first medium to long-term agreement of its kind in Mainland China.
Ensuring a secure energy supply
In our role as an engine powering the community and the economy, CLP is committed to ensuring a secure and reliable energy supply. In Hong Kong, we have made strategic investments in additional capacity at our Black Point Power Station and in the city’s first offshore LNG terminal, helping to secure a competitively priced gas supply for our transition away from coal.
In Australia, the 350MW Wooreen Energy Storage System was approved by Victoria’s State Government in 2023, which will contribute to securing the area’s energy supply with additional renewable energy prior to the retirement of Yallourn Power Station.
As extreme weather events are becoming more frequent and severe because of global warming, CLP remains focused on strengthening our generation and transmission network reliability and resilience. We have also taken the opportunity to review our climate resilience as part of CLP’s Climate Vision 2050 update. Our efforts in assessing and adapting to climate-related physical risks have been cascaded from the Group level to our individual assets.
Empowering a future-ready workforce
In response to the changing business environment, it is critical for us to upskill and reskill our people so that we are ready for change. We also need to ensure a strong pipeline of talent to meet our needs. As part of our holistic approach in talent development, we invest tremendous resources to support the professional growth of our people and generate the interest of students and young people in pursuing careers in power engineering. We have an established, long-term strategy to cultivate in them a powerful sense of belonging, trust and cooperation combined with the leadership skills to carry our business forward.
As we reflect on the year 2023, we are proud of the progress we have made as a company and of the unwavering commitment we have shown to creating positive impacts. Looking ahead, the principal priority for our business is decarbonisation. The journey towards energy transition demands bold action. We are aware of the challenges that lie before us and will capitalise on the emerging opportunities. Guided by our updated Climate Vision 2050, we will continue to work tirelessly to shape a future where sustainable energy and a thriving community go hand in hand.
