AC Energy (ACEN), the energy company of the Ayala group, has unveiled a comprehensive Net Zero roadmap, making it the first energy firm in Southeast Asia to do so. The roadmap outlines emission reduction targets that align with the GHG Protocol and the latest climate science. ACEN aims to achieve a reduction-led decarbonisation by 2040, with an interim target for 2030, and ultimately reach Net Zero status, including neutralisation, by 2050. The company recognises that reaching Net Zero will require a combination of emissions reduction and neutralisation of residual emissions. ACEN is committed to achieving a Net Zero GHG emissions status by 2050, which is in line with the broader Ayala group’s net-zero target.
Eric Francia, ACEN’s CEO, said that the entire company and board supported the initiative and that its climate ambition aligned with the goal of reaching 20 GW of renewables by 2030. In October 2021, ACEN announced its commitment to achieving Net Zero GHG emissions by 2050 and plans to transition its generation portfolio to 100% renewable energy by 2025. The company currently owns a 4,030 MW net attributable capacity generation portfolio, with 98% coming from renewable technologies across the Asia Pacific.
ACEN completed the full divestment of its South Luzon Thermal Energy Corporation coal plant in November 2022, using the Energy Transition Mechanism framework. This move will enable the early retirement of the 246 MW coal plant, reducing its technical operating lifetime by half, and transitioning it to cleaner technology. The transaction generated ₱7.2 billion in proceeds for ACEN, which will be reinvested in renewable energy projects.
ACEN worked with global climate solutions provider South Pole to calculate its GHG footprint and develop a robust Net Zero pathway that aims to achieve near-term emission reduction targets in 2030, long-term emission reduction targets in 2040, and neutralise residual emissions by 2050. To achieve the ultimate goal of Net Zero emissions by 2050, carbon dioxide emissions from the power sector need to decrease by approximately 60% between 2019 and 2030, while the Southeast Asia region’s energy consumption is projected to increase by 60% or more, according to the IEA. The decisions made by business leaders like ACEN on decarbonisation will determine the collective future.