FOR IMMEDIATE RELEASE

MEDIA CONTACT: Stefanie Spear, sspear@asyousow.org, 216-387-1609

BERKELEY, CA—NOV. 2, 2021—Xcel Energy Monday announced its commitment to achieving net-zero greenhouse gas emissions from its natural gas business by 2050 and a 25% reduction in emissions by 2030. The pledge builds on Xcel’s 2018 leading commitment to provide customers with 100% carbon-free electricity by 2050. The announcement makes Xcel one of the first major American utilities to include in its net-zero target emissions from the natural gas it sells to customers. 

“We are glad to see Xcel once again showing industry leadership by acknowledging the need to reduce emissions from its natural gas business to net-zero,” Daniel Stewart, climate and energy program manager at As You Sow, said. “It is absolutely critical for all utilities to follow suit and include their customers’ use of natural gas in decarbonization commitments.”

Xcel disclosed a list of actions it will implement to achieve its target, including purchasing natural gas from certified low-emission suppliers, improving its operations to achieve net-zero methane emissions by 2030, and offering low-carbon gas alternatives such as hydrogen and renewable natural gas (RNG). 

“Investors do have serious concerns over the role that RNG and hydrogen will play in utilities’ net-zero transition due to limited supplies of RNG and the high cost of green hydrogen,” Stewart said. “Low carbon gas alternatives will have some role to play in the transition to a net-zero economy, but they are likely to have limited utility in buildings. Building electrification solutions, such as the use of heat pumps, are much more robust at reducing climate risk while being more cost-effective and offering additional benefits such as reduced indoor air pollution.”

The burning of fossil fuels for heating and cooking in homes and businesses generates around 10% of total U.S. emissions and leads to considerable indoor air pollution. As a result, states and municipalities across the country are passing policies to phase out the use of natural gas in buildings. California has just updated its building code to prioritize electrification and Colorado introduced a Clean Heat Standard to incentivize decarbonizing buildings, while more than 50 Californian cities have committed to phasing out natural gas in newly constructed buildings.

“Building electrification will be critical in ratcheting down our economy-wide emissions,” Stewart said. “All utilities need to start examining their natural gas businesses in light of these electrification policy trends geared to achieve local and state net-zero goals. Investors need to know that the utilities in which they invest are analyzing the opportunities and risks from a rapid shift to building electrification, both for their emissions reduction goals and their bottom line.” 

To learn more about As You Sow’s work on climate change, click here.

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As You Sow is a nonprofit organization that promotes environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies. See our resolutions here.