Tuesday 30 November 2004

The report Ranking Power reveals that the world's leading power companies are not investing enough in renewable and efficient energy in order to reduce their greenhouse gas emissions. The report gives two-thirds of the world's leading power companies a score of less than 1 out of 10 for their response to global warming, and more than 90 per cent rank less than 3.

US companies came out worst and European companies hardly did any better in the analysis which assessed 72 power companies in terms of their use, sale and investment in renewable energy and highly efficient natural gas.

Tackling climate change
The report marks the beginning of WWF's new international climate change campaign, PowerSwitch! The campaign will target the power sector to make the switch from coal to clean energy. Campaigning will be taking place in more than twenty countries - sending a clear signal that the power sector must change.

"The power sector is the biggest single polluter of greenhouse gases, responsible for 37 percent of CO₂ emissions from the burning of fossil fuels," said Nicola Saltman, Climate Change Programme Leader for WWF-UK. "However, the companies we analysed are completely unprepared for fundamental change in the way they invest in clean and efficient energy. And three-quarters of the companies surveyed were not prepared to disclose their strategy on global warming."

Power companies in Europe
UK-based Scottish Power was the second best European company with a ranking of 3.7. Although the company has 74 per cent coal in its current fuel mix it scored high for its planned future investment in renewable and efficient energy. British Energy was 15th out of the 22 European companies with a ranking of 0.8. Its fuel mix is 44 per cent nuclear and 2 per cent renewable energy. UK-based International Power was ranked ninth with a score of 1.5.

Nearly 65 per cent of the European companies surveyed have shares of renewable energy in their fuel mix below 1 per cent.Only one-fifth of European companies surveyed had shares of renewable energy in their fuel mix greater than 2 per cent. Of the 22 companies assessed, Iberdrola in Spain scored the highest with a ranking of 4.3. German-company RWE, which is the parent company of UK-based RWE Npower, came out 12th with a ranking of 1.3. German company Eon, which owns UK company Powergen was given a ranking of 0.6, finishing 17th.The French-EDF group, which owns company EDF Energy came 11th with a ranking of 1.3.

Power companies worldwide
Amongst American firms 24 per cent scored 0 and 76 per cent scored below one. In Japan and Australia the use of renewable fuel is extremely limited as the fuel mix is often dominated by lignite coal, one of the dirtiest and most carbon rich fuels of all.

Time is running out
According to WWF, the power sector's contribution to climate change threatens the very development that electricity promotes. Matthew Davis, Climate Change Campaign Leader for WWF-UK, said:
"Time is running out and unless power companies and governments take action now, it will put millions of people at risk from rising sea levels, loss of fresh water, extreme weather and disease. In the UK we will be targeting both the power sector and the Government in the run up to the general election to ensure climate change is put firmly on the public and political agenda."