Ayala Energy Group Reveals Roadmap to Reach Net Zero Emissions by 2050

ACEN, the Philippines-listed energy company of the Ayala Group, has announced its plans to achieve net zero greenhouse gas (GHG) emissions by 2050.

The ACEN roadmap includes near-term emission reduction targets aligned with the GHG protocol and the latest climate science and long-term targets that are consistent with the deep decarbonisation of the power sector.

ACEN said it is the first energy company in Southeast Asia to take this critical step towards achieving net zero, providing an accountable and transparent framework for monitoring progress.

The company said it recognises that to reach the net zero outcome for the power sector, it will need to rely on both emissions reduction and neutralisation of residual emissions.

As part of its transition plan, ACEN aims to deliver reduction-led decarbonisation by 2040, with an interim target for 2030, and a Net Zero status (including neutralisation) by 2050. This 2050 goal is in line with the broader Ayala group net zero target, while ACEN will continue to explore opportunities to further accelerate these targets in future.

Eric Francia, president and CEO of ACEN, said: “We are pleased to share our progress on our commitment to achieve net zero GHG emissions by 2050, including reaching our long-term decarbonisation goals by 2040, with clear milestones providing an accountable and transparent framework for measuring progress. The entire organization and the board fully support this initiative. Our climate ambition is well aligned with our vision to reach 20 GW of renewables by 2030.”

Accelerating ACEN’s net zero ambition, in November 2022, the company completed the full divestment of its South Luzon Thermal Energy Corporation coal plant using the Energy Transition Mechanism (ETM) framework.

This landmark transaction will enable the early retirement of the 246 MW coal plant that forms part of ACEN’s retail electricity activities. Under the mechanism the coal plant will be retired by 2040, reducing its technical operating lifetime by half, and transitioning to cleaner technology. The transaction, which generated ₱7.2 billion in proceeds for ACEN, will be reinvested into renewable energy projects.

#netzero #renewableenergy #decarbonisation

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