Duke Energy

Duke Energy set two scope 1 emissions reduction targets, one is 50% reduction by 2030 compared to 2005, the second target is 100% reduction by 2050. This pace is not aligned with the ambition of the 1.5°C scenario which requires the company to be net zero by 2035. Additionally, the company does not have a consistent set of intermediate targets with the time gap between the targets of no more than 5 years to incentivise near-term action over the long-term goals.

Between 2015 and 2020, Duke Energy’s scope 1 emissions intensity reduced by an average of 1% per year. To align with its 1.5°C pathway, the company should decrease its emissions intensity by at least 8% annually. The company’s ongoing use of thermal fuels means that locked–in emissions from its current and pipeline assets exceed the budget attributed to the company by its 1.5°C pathway by 44%. The company is expected to develop a plan to phase out coal completely and publish its planned investments in low-carbon generation for the next 5 years. 

Duke Energy is committed to working with the private and public sectors to drive research, development and demonstration of technologies such as advanced nuclear, membrane-based carbon capture, hydrogen, biofuel utilization for power generation and longer-duration storage. However, Duke Energy disclosed neither its investments in low-carbon innovation in 2020, nor planned innovation expenditures which are essential to assess if the company will remain competitive in a low-carbon economy and contribute to the deployment of the technologies having a high mitigation potential.

Duke Energy has conducted risks evaluation and net-zero scenario analysis. However, the analysis is limited in terms of value-at-risk assessments, there is lack of any discussion of the risks of company’s reliance on fossil resources. Scenario analysis and stress testing should allow the company to calculate the value-at-risk that climate-related changes could pose to the business, identify potential “stranded assets” and inform the transition plan.

Duke Energy set scope 1 absolute emissions reduction target by 50% by 2030 compared to 2005 levels and aims to become net zero by 2050. Share of renewable sources for electricity generation is planned to increase from current 8% to 44% by 2050.

Duke Energy plans to invest nearly USD 19 billion in low-carbon electricity generation and grid modernization by 2023. The company plans to increase its wind, solar and biomass from 8.8 GW to about 26 GW by 2030, and close five coal units, totalling capacity is 862 MW by 2024.

In 2020, Duke Energy invested almost USD 1.1 billion in low-carbon electricity sources, representing 10% of electricity generation capital expenditure. The company is also investing in low-carbon innovation, but did not disclose its total spend in 2020.

Between 2015 and 2020, Duke Energy’s scope 1 and 2 emissions intensity decreased by approximately 1% annually, while 8% reduction rate is required by its 1.5°C pathway. Some coal plants have been retrofitted to allow them to burn gas as well as coal and some have been retired.

Short to medium term, Duke Energy is achieving emissions reductions by replacing coal with gas. The company has also made a financial commitment to grow its low-carbon capacity. Commitment to gas and lack of innovation investments commitment challenge the company’s consistency on climate issues.