Decarbonization: Environmental Imperative, Business Opportunity

Our impact on the environment is something we take seriously. In recognition of Earth Day (April 22) and to demonstrate support for environmental stewardship, we’re kicking off the month highlighting our work to reduce our impacts on the environment, improve our performance and cultivate a decarbonized energy future.

The urgency of climate action is undeniable. The science is clear, and the impacts are becoming increasingly visible.

Decarbonization – the process of reducing carbon dioxide (CO₂) and other greenhouse gas emissions – is essential to secure a sustainable future.

While the environmental necessity is apparent, the strong business case for decarbonization also deserves more attention.

At Capital Power, we see this transition as both a responsibility and a strategic opportunity that positions us to drive innovation, secure long-term competitiveness, and future-proof our business.

Here’s why we’re embracing the decarbonization challenge and seeing it as both an environmental imperative and a positive driver of innovation and impact. 

Evolving Market Demands

Consumers and investors are demanding climate action, and this represents an opportunity.

A KPMG report on the business case for climate action reported that climate-related opportunities represented potential financial impacts totaling over US$2.1 trillion. Much of this impact is driven by the potential increase in revenue due to demand for low-emission products and services.

Similarly, new innovative financial solutions are being designed to mobilize capital to invest in critical frontier areas, including cleantech innovation and sustainable energy, and to help finance other emerging sustainable investment opportunities.

Companies with strong sustainability practices also attract top talent, build brand loyalty, and increasingly unlock access to favorable financing terms.

Investing in the Future of Energy

Our commitment to decarbonization means reaching net zero by 2045. This drives our team to accelerate our transition with innovative clean energy solutions, including expanding our portfolio with more renewables, phasing out carbon-intensive power sources, and developing innovative solutions, including:

• Transformational Technology: Capital Power is exploring cutting-edge technologies like carbon capture, energy storage, and hydrogen. The front-end engineering and design (FEED) study for our Genesee CCS project is now completed, and the Genesee Repowering project will create the most efficient natural gas combined-cycle units in Canada.
• Embracing Innovation & Expanding Renewables: we’re invested in technologies and infrastructure to reduce emissions for utility-scale power generation across our target markets of Alberta, Ontario, MISO, and the U.S. WECC region. This includes projects like our Halkirk 2 Wind and Maple Leaf Solar and our 3.4 GW renewable development pipeline.

To unlock further decarbonization and ensure grid reliability, Capital Power is investing in cutting-edge technologies like carbon capture, energy storage, and hydrogen. These investments fuel progress toward our net-zero goals and will result in decarbonized power for our customers. This will empower businesses economy-wide to reach their sustainability goals while also opening new revenue streams within the emerging clean energy economy.

The Smart Choice

The business case for decarbonization is clear. It’s not just the right thing to do; it’s the smart thing. By seizing the opportunities inherent in this transition, we’re future-proofing our business and creating a more prosperous, secure, and resilient future for our company and the communities we serve.

Read more about our approach to accelerating a net zero energy future that supports environmental stewardship in our 2023 Integrated Annual Report (p. 27-29).