Decarbonizing Natural Gas
Many governments and organizations around the world are setting ambitious carbon reduction goals, goals that cut across broad swaths of the economy, encompassing electricity, transportation, buildings and industrial processes. In the United States, ten states with 2050 emission reduction goals have targeted close to 80% reductions in emissions between now and 2050, from 800 million metric tons in 2018 to 158 million metric tons in 2050.
To meet the aggressive carbon emission reduction goals in ten identified states with 2050 objectives, the incumbent natural gas companies would need to reduce their emissions from 224.7 million metric tons per year in 2018 to 45.6 million metric tons per year in 2050. The business and financial implications for natural gas companies are immense. Local distribution companies have a wide range of potential initiatives they can pursue to mitigate and overcome key risks to their core business and financial returns associated with carbon reduction.
