National Grid breaches upper emissions limit in first year of climate plan

Rise in Scope 1 and 2 beyond its control, says UK energy firm as it unveils green spending plans

National Grid has breached the upper threshold for Scope 1 and 2 emissions in the first year of its climate transition plan, citing factors beyond its control. 

The London-listed energy firm disclosed in its annual report last week that rising emissions had put it “outside of our range set out in the CTP [climate transition plan]”, which was only approved by shareholders last July.  

Its Scope 1 and 2 emissions over the previous year were around 600 ktCO2e above its upper 6800 ktCO2e limit, although its entire annual emissions were down 4.4% against its 2018/19 baseline. 

National Grid is targeting a 60% reduction in Scope 1 and 2 emissions by 2030/31, and described the previous 12 months as “exceptional”, blaming performance on factors “outside of National Grid’s control”.  

The company is contracted to provide energy to the Long Island Power Authority (LIPA) in the US, which forced it to increase oil- and gas-generated power amid unplanned outages at third-party generators and transmission lines in the area. 

“This contractual obligation with LIPA has led to the increase in our Scope 1 emissions, outside of the upper range set out in our CTP, demonstrating the non-linear trajectory of meeting our emissions targets,” it wrote.  

A spokesperson for National Grid told Real Economy Progress: “Cutting emissions remains of paramount importance for us at a time of rising energy demand and we are committed to working with policymakers to navigate a complex geopolitical and macroeconomic landscape, while acting as a responsible business that delivers for customers, communities, regulators and stakeholders.” 

The firm plans to invest in more low-carbon power generation and storage over the next four years, with its annual report stating that 85% of its capital expenditure over the period is expected to align with the EU’s green taxonomy.