THE CLIMATE STRATEGY PURSUED

ENGIE has set a goal of reaching Net Zero Carbon 

(1)

throughout its entire value chain (scope 1, 2 and 3)

by 2045, following a well-below 2°C trajectory certified by the Science Based Target initiative (SBTi) in

February 2023. In this way, the Group is reducing its direct and indirect greenhouse gases (GHG) emissions

by at least 90% compared with 2017 

(2)

. At the same time, it plans to work on the development of

carbon sinks in order to neutralize its residual emissions over the long term and thus contribute at the

right level to planetary carbon neutrality. The Group is also committed to supporting its customers in

the reduction of their GHG emissions in order to accelerate the decarbonization of its own value chain.

ENGIE’S VISION FOR THE ENERGY

TRANSITION IN EUROPE

Given the prevailing uncertainty regarding

the evolution of the energy mix,

public policies and the development of

the sectors, ENGIE is building different

scenarios for Europe’s energy future.

Each scenario quantifies the volumes

and prices of the main commodities

(electricity, gas, coal, hydrogen, oil and

CO

2

) of the 19 main European energy

markets between 2023 and 2050.

The reference decarbonization trajectory

chosen by ENGIE focuses on a balanced

mix, in which renewable gases along

with electrification of usages all have

their benefits, in order to guarantee the

best levels of efficiency and resilience

of the energy system. In addition,

energy sufficiency and efficiency are

an integral part of the efforts to reduce

GHG emissions.

Studies carried out by the Group

for the European scope have shown

that large-scale electrification would

generate additional costs of more

than 15% by 2050 and would result in

increased vulnerability of the electricity

system. The Group also believes that the

use of a wider range of decarbonization

options puts energy system players

in a better position to benefit from

technological progress and meet

the needs of flexibility inherent to the

energy market. It would also reduce

the economic and political pressure on

electricity infrastructures (new lines to

be built, acceptability of decarbonized

production assets, whether it is wind,

solar or nuclear).

Different gases will contribute to

the energy system of tomorrow.

Biomethane, the first contributor, is part

of a circular economy, decentralized

solutions and creates local jobs.

It can be injected into all existing

networks without adaptation.

Renewable hydrogen produced by

electrolysis from renewable energy

sources will be key to decarbonizing

high-temperature industrial processes

and heavy transport.

Finally, synthetic methane will complete

the possible solutions. More details on

the role of renewable gases can be found

in the “renewable gases” notebook.

ENGIE SCENARIO FOR GREENING NATURAL GAS IN EUROPE

EU19 METHANE DEMAND TWh HHV

Buildings

Industry other Elec prod

Transport

5000

4000

3000

2000

1000

0

2050 2040 2025 2045 2030 2035 2020

T W h H H V

4 This chart tracks methane demand only It should be noted that ENGIEs reference decarbonization scenario integrates hydrogen for approximately 1000 TWh HHV

in 2050 excluding eCH

4

ENGIE’s strategy to decarbonize its value chain is based on three pillars (Reduce, Avoid and Remove) in line

with the methodological framework of the Net Zero Initiative: 

(3)

ENGIE’s 2045 Net Zero Carbon target

Reduce ENGIE’s GHG emissions

First, reduce the direct and indirect GHG

emissions resulting from ENGIE’s activities

by at least 90% compared compared to 2017

Remove carbon from the atmosphere

Then, increase carbon sinks to neutralize

the last residual emissions that are

the most difficult to abate.

Avoid customers’ GHG

emissions through ENGIE’s

solutions

Support customers’

decarbonization so that they can

reduce their GHG emissions.

(1) Definition of the SBTi’s Net Zero standard (2) Baseline year for ENGIE’s climate targets defined with the SBTi

(3) Carbone 4 initiative supported by ADEME

Biomethane Natural gas unabated

Local eCH

4

eCH

4

imports NGCCS

2050 2040 2025 2045 2030 2035 2020

EU19 METHANE SUPPLY TWh HHV

4

5000

4000

3000

2000

1000

0

T W h H H V

66 - CLIMATE NOTEBOOK

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