China Three Gorges is a state-owned company headquartered in Beijing, China. In 2020, its revenue was USD 16.2 billion and installed capacity was 88 GW. Three Gorges has 95% low-carbon electricity installed capacity, and it states that it aims to achieve carbon peaking by 2023 and carbon neutrality by 2040.
Three Gorges has a major reliance on hydropower electricity, which makes a better place for its low-carbon transition to start with. Though it has announced its 2040 carbon neutrality commitment, it is not yet clear how it plans to phase out its fossil fuel assets. To include a clear low-carbon transition plan and conduct a scenario analysis will help it grasp opportunities and reduce risks in the low-carbon economy.
Three Gorges mentions that they aim to achieve carbon peaking by 2023 and carbon neutrality by 2040. However, it does not announce a GHG emissions target, which is common among Chinese companies. Without an emission target, this company might fail to decarbonize as much as its transition pathway requires, even though it already has 95% low-carbon capacity installed in 2020.
Three Gorges receives a trend score of =. If the company were reassessed in the near future, its score would likely remain the same. Three Gorges is not on track to achieve the reduction in emission levels required by its 1.5°C pathway due to its business activities in fossil fuel energy. It is projected to exceed its carbon budget by 135% in 2035. However, the company’s new commitment to peak carbon emissions by 2023 and reach carbon neutrality by 2040 could lead to a declining trend for fossil fuel power generation emissions.
Three Gorges plans to strengthen its expertise in hydropower and accelerate development in solar and wind. It does not release a detailed transition plan which include targets for fossil fuel phase out timeline.
Between 2015 and 2020, Three Gorges’ emissions intensity increased from 23 gCO2e/kWh in 2015 to 33 gCO2e/kWh in 2020. Though the company’s emission intensity reduced from 2018 to 2020, this number is still higher than in 2015 due to its fossil fuel business activities.
Three Gorges consistently develops hydropower and invests in wind and solar though it still expands its activities in fossil fuel energy. It is unclear how it plans to phase out fossil fuel assets and reduce emissions due to the lack of information. As it announced the 2040 carbon neutrality goal, the company is likely to enhance efforts to reduce emission in the coming years.
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.