Ørsted has set a target to become carbon neutral by 2025 and achieve a carbon-neutral footprint by 2040.
By becoming carbon neutral by 2025, Ørsted will be the first major energy company to reach net-zero emissions in its operations and energy generation.
According to the Danish company, the most important levers are the installation of 20GW of offshore and onshore wind by 2025, supported by a commitment to invest DKK 200 billion in green energy, and a complete phase-out of coal by 2023.
Ørsted believes this will allow the reduction of its emissions by at least 98% by 2025, while the remaining emissions come from a variety of sources that are harder to abate.
To achieve a carbon-neutral footprint by 2040, the company plans to gradually phase out natural gas trading activities while increasing the green share of power traded.
“We’ve come very far in reducing our emissions and Ørsted is more than two decades ahead of what is required by science to limit global warming to 1.5°C. We’ve now decided to take an additional step by making Ørsted a carbon neutral company already by 2025. Halting climate change requires action at all levels of society, and we need that action now. Especially within production and use of energy which account for 73% of all global emissions,” said Ørsted CEO, Henrik Poulsen .
“We’ve transformed from producing energy based on fossil fuels to producing carbon neutral energy. We’ve seen a real strengthening of our business and shown that a rapid green turnaround is possible. A decade ago, we were one of Europe’s most coal-intensive utilities, and by 2025, we’ll be carbon neutral.”
As the leading developer of offshore wind, Ørsted has installed one-third of all offshore wind turbines globally. By driving out carbon emissions from its energy generation and operations, the company has reduced its carbon emissions by 86% compared to 2006.
Corporate Knights recently named Ørsted as the world’s most sustainable company.