China Huaneng Group is a fully state-owned company headquartered in China. In 2020, its revenue was USD45.5 billion and installed capacity was 196 Gigawatts (GW). Huaneng was the first mainland Chinese power producer to become a Fortune 500 company. It is majorly dependent on coal, but it plans to accelerate its low-carbon electricity capacity from 36.6% in 2020 to 50% in 2025 and 75% in 2025.
The company has committed to increase its low-carbon electricity capacity from 36.61% in 2020 to 50% in 2025, and 75% in 2035. This increase in low-carbon capacity could generate significant changes in Huaneng’s business model and succeed in a low-carbon economy. However, disclosure on scenario analysis, strategic steps to phase out coal and targets reduce its scope 1 and 2 emissions are still lacking. These elements are essential to help assess Huaneng’s transition progress.
Huaneng’s emissions intensity has decreased by 5%, from 696 gCO2e/kWh in 2015 to 661 gCO2e/kWh in 2020, which only represents a fifth of the rate required by its 1.5°C pathway between 2020 and 2025. The company is projected to exceed its carbon budget to 2035 by 54%. To remain within its carbon budget, Huaneng should accelerate the decline in electricity production from fossil fuel assets.
Huaneng receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. Huaneng is not on track to achieve the reduction in emission levels required by its 1.5°C pathway. It will exceed its carbon budget to 2035 by 54%. Huaneng plans to reduce 20% carbon emission by 2025 and increase low-carbon electricity capacity from 36.61% in 2020 to 50% in 2025, which could improve its alignment with its 1.5°C pathway.
By 2025, Huaneng plans to have installed power generation capacity reaching about 300 million kilowatts, adding new energy installed capacity of more than 80 million kilowatts, ensuring that low-carbon energy installations account for more than 50%.
Huaneng just released a low-carbon transition plan in 2021. The company will continue to increase its low-carbon electricity capacity from 36.6% in 2020 to 50% in 2025. However, the company doesn’t disclose a strategy explaining how it will reduce emissions or gradually phase out from coal assets.
Just Transition Assessment
In this report, we present five key thematic findings showing how 180 companies can increase their ambition towards a transition to a low-carbon future that is just and equitable for the people and communities at risk of being affected by it.