We want to reduce our carbon intensity and our carbon footprint. In May 2007, we established a target for reducing our specific carbon dioxide emissions: by 2030, we aim to halve the amount of CO₂ we emit for each kilowatt-hour of electricity we generate compared with 1990 levels.

To achieve this, in May 2007 we defined our groupwide Climate Protection Strategy. We factor climate-protection considerations into all our operational and strategic decisions. We also evaluate all significant capital investments and acquisitions for their impact on our carbon footprint.

 

Our climate protection strategy has five key areas:

• expanding our renewables capacity
• enhancing the thermal efficiency of our conventional generation fleet
• deploying CCS technology in coal-fired power plants
• increasing our investments in the research and development of climate-friendly technologies
• playing a greater role in championing nuclear power

Our commitment to climate protection isn’t a vague promise. Through 2012, we’re investing EUR ten billion in enhancing the thermal efficiency of our conventional generation fleet, in renewables and in R&D.  

In 2007, we created a new market unit, Climate & Renewables, to manage and expand our global renewables business, to coordinate climate protection projects (JI/CDM projects) and oversee the development of new technologies like tidal energy. In the period up to 2010 E.ON Climate & Renewables will invest EUR six billion into renewable energy projects.

Along with expanding our low-emission and zero-emission generating capacity, we also trade emission allowances. We offset a portion of our emissions through carbon offset projects, such as Joint Implementation Projects and Clean Development Mechanisms. As we will be allocated fewer emission allowances in the second phase (2008-2012) of the EU Emissions Trading Scheme, we’ll have to purchase more allowances on the secondary market. This creates an additional incentive to further reduce our carbon emissions.

To be effective, climate protection must be coordinated globally. That’s why we joined Combat Climate Change (3C) in early 2007. The purpose of 3C is to convince companies that produce or consume large quantities of energy to do more for climate protection to dramatically slow global warming by 2100.
 
We’re also involved in a multi-industry initiative of the World Business Council for Sustainable Development. The initiative serves as a platform for exchanging knowledge and experience as well as promoting the business case for climate protection. The initiative is also to define a shared position on climate change that can serve as a guide for legislators as they craft new energy laws and policies.

We regularly assess the effects, such as higher average temperatures and storms, that climate change could have on our business. That’s how we evaluate physical risks to our employees, buildings and power lines as well as financial risks relating to accidents and to fewer heating degree days, a term used in the natural gas industry to compare outside temperatures of specific days. We evaluate these risks on an annual basis to determine their likelihood and to estimate the cost of any damage. We use risk analysis to identify ways in which we can take action to mitigate the effect of climate change on our business.