Climate Lobbying Overview: EDP is strategically engaged on various climate change policy streams with highly positive positions. For example, the utility has engaged in strong support of the EU’s Climate Law, 2030 GHG emission reduction target, and positive reforms to the EU’s Emissions Trading Scheme (ETS). EDP also supports the transition of the energy mix.

Top-line Messaging on Climate Policy: EDP’s top-line messaging on climate policy is highly positive. EDP was a signatory of a May 2022 joint letter to European policymakers which stated support for the EU’s 2050 climate neutral target. In a October 2022 joint letter to G20 leaders, signed by EDP CEO Miguel Stilwell d’Andrade, the company supported more ambitious nationally determined contributions (NDCs) in the build up to COP27, and supported the goals of the UN Paris Agreement. CEO, Miguel Stilwell d’Andrade, also appeared to support climate policy and a regulatory framework, including credible and effective carbon pricing mechanisms, in a Global Wind Energy Council joint letter in July 2021.

Engagement with Climate-Related Regulations: EDP has strongly supported the EU ETS, and has on several occasions advocated for reforms to increase its effectiveness. The company signed an open letter to EU Commission President Ursula von der Leyen in May 2022, calling for more ambitious reforms to the EU ETS. In its February 2021 Consultation Response on the EU ETS, the company appeared to support reforms to increase the ambition of the scheme’s emission reductions, while calling for free allocations for industry to be replaced with auctioned allocations. EDP has also been supportive of the EU’s Carbon Border Adjustment Mechanism (CBAM), with the company signing a joint letter to EU policymakers in June 2021 to support inclusion of the hydrogen sector in the CBAM, although it did not specify a position on removal of existing carbon leakage protection for exposed sectors under the EU ETS.

EDP signed an open letter to EU Commission President Ursula von der Leyen in May 2022 calling for ambitious reforms to European energy efficiency policy, including the Energy Efficiency Directive, Renovation Wave and Energy Performance of Buildings Directive (EPBD). The company also supported higher ambition in the EPBD in a June 2021 consultation response, advocating for the gradual phase out of fossil fuels, a prioritization of renewable technologies and minimum renewable energy requirements. In a May 2022 joint letter to European policymakers, EDP supported a 2035 zero-emissions CO2 target and strong emissions standards for cars and vans. In its 2020 Sustainability Report, published in March 2021, EDP appeared to support raising the EU’s 2030 GHG emission reduction target to at least 55%.

EDP has strongly supported renewable energy policy in both the EU and the US. The organization has stated support for the revision of the EU’s Renewable Energy Directive, and indicated that the 2030 target should be increased to “between 38-40%” in a 2021 consultation response. The company supported strict criteria for renewable hydrogen production in the EU Renewable Energy Directive’s Delegated Act on renewable fuels from non-biological origin (RFNBOs), and advocated against a ‘grandfathering’ clause to delay the implementation of the regulation in a July 2022 open letter to European policymakers. CEO Miguel Stilwell d’Andrade stated support for clean energy tax credits under the US Inflation Reduction Act in an October 2022 earnings call to investors.

Positioning on Energy Transition: EDP appears highly supportive of energy transition-related policy, particularly the development of green hydrogen in the energy mix. In its 2021 Sustainability Report, published in May 2022, the company strongly supported decarbonizing several sectors of the economy, including transport, buildings and industry, by accelerating renewable energy technologies. In a July 2021 joint statement, the company supported electrification and decarbonization of the economy, specifically the use of renewable energy across sectors and the use of green hydrogen in hard-to-abate sectors, while advocating against the use of blue hydrogen, hydrogen blended with fossil gas, and the retrofitting of fossil gas infrastructure to blending.

EDP also signed a March 2021 joint letter to the EU Commission to promote increased use of renewable hydrogen in the economy, while opposing increasing the emissions threshold for eligibility of clean hydrogen production under the EU Taxonomy. The company’s CEO Miguel Stilwell d’Andrade also signed a joint letter from the Global Wind Energy Council in July 2021 that stated support for the expansion of renewable energy, while calling for a ban on new coal investments to decarbonize the energy mix.

Industry Association Governance: EDP publicly discloses a list of industry association memberships but does not comment on how the company is attempting to influence these groups, nor has it published a full review of its industry association links. The company has links to trade associations positively engaged on climate policy, including Eurelectric and SolarPower Europe.