‘Climate Target Setting for Power Generation Sector Financing’ is the fifth in a series of publications developed by members of the Net-Zero Banking Alliance (NZBA) with the goal of assisting banks by outlining the choices they make when setting climate-related targets for financing in different sectors of the real economy.
This report provides an overview of the design choices relevant for banks setting targets to reduce emissions associated with their financing of the power generation sector. It considers choices related to the scope, portfolio metrics, data, and scenarios of targets and also highlights trends and common challenges related to target setting for this sector. The report does not prescribe any particular methodology or impose any requirements on NZBA banks above the commitments each chose to make when becoming a member.
This paper can be used in conjunction with the Climate Risks in the Power Generation Sector report for banks looking to identify and manage climate-related risks associated with their financing of the power generation sector.