Spanish power company Iberdrola SA, known for its leadership in wind energy production, has launched a new business unit called Carbon2Nature (C2N) that aims to generate nature-based carbon credits in order to reduce its global carbon emissions. This carbon credit company is formed through Iberdrola’s startup program Perseo and will provide high-quality carbon credits in-house through projects focused on improving biodiversity and conserving and restoring nature.
C2N leverages the potential of carbon markets to support the development of projects that will generate high-quality carbon credits. The company will either develop its own nature-based solutions (NBS) or partner with others doing the same. The goal is to capture and sequester over 61 million tons of carbon in natural sinks across more than 100,000 hectares, including forests, coastal ecosystems, and agricultural land. Each credit corresponds to each tonne of carbon reduced, removed, or avoided from entering the atmosphere.
The nature-based projects will prevent emissions caused by degradation and contribute to additional carbon sequestration while promoting social and environmental benefits. Carbon2Nature believes that investing in nature is crucial to fight climate change and promote sustainable value creation. Miguel Ángel García Tamargo, the director of Carbon2Nature, stated, “We come to this new market with humility and a desire to do things differently, bringing all of Iberdrola’s experience in sustainability to the world of nature-based solutions and the generation of carbon credits.”
In addition to reducing carbon emissions, Iberdrola plans to use this initiative to advance emerging clean energy solutions and sustainable production processes. The majority of C2N’s projects will be in Latin America, including Peru, Chile, Mexico, Brazil, and Colombia. The company will also invest in nature-based solutions in the UK, Portugal, and Spain. Carbon2Nature’s carbon credits will be available to Iberdrola’s customers who aim to reduce their carbon footprint, as well as contributing to the company’s own net-zero goals. Iberdrola aims to reach net-zero emissions by 2040 by focusing on producing more renewable energy.
As a global leader in renewable energy, Iberdrola has set ambitious targets for carbon neutrality. The company aims to achieve carbon neutrality for Scopes 1 and 2 by 2030 and net-zero emissions for all scopes before 2040. To reach these goals, Iberdrola plans to invest approximately 47 billion euros between 2023 and 2025 in renewable installations, including onshore and offshore wind power, solar photovoltaic, battery, hydroelectric capacity, and electricity grids. By the end of the decade, the company expects to achieve 100,000 MW of installed capacity, with 80% coming from renewable sources. Between 2026 and 2030, Iberdrola plans to invest between 65 to 75 billion euros to further accelerate the energy transition.
In addition to reducing its own carbon emissions, Iberdrola is also working towards decarbonizing the energy mix sector. The company has implemented a range of decarbonization initiatives, resulting in a 15% reduction in direct and indirect carbon emissions from 2021 to 2022. Iberdrola’s commitment to climate change and sustainability is evident in its carbon emissions intensity, which shows a significant downward trend.
As part of its net-zero journey, Iberdrola will focus on decarbonizing electricity generation through the introduction of renewable energies, system integration through smart grids and digitization, electrification of demand for sectors that are difficult to decarbonize, and nature-based and other emerging climate solutions. Carbon2Nature is the latest initiative by the energy giant to support its sustainable energy model and fuel its decarbonization strategies. By harnessing carbon markets and nature-based projects, Iberdrola exemplifies the multifaceted approach needed to usher in a net-zero era.