Climate Lobbying Overview: Iberdrola appears supportive of ambitious action on climate change, and has engaged positively on climate-related regulation in the EU and globally. In particular, the company has actively lobbied for greater ambition across a range of EU-level climate policies covering energy, transport, and industrial sectors.

Top-line Messaging on Climate Policy: Iberdrola strongly supports climate action in its top-line messaging. Iberdrola has consistently supported a 2050 climate neutrality target for the EU including in a November 2021 EU public consultation response, and advocated for a global shared target of net-zero emissions by 2050 in a joint letter in October 2021. In the same letter, the company supported more ambitious Nationally Determined Contributions at COP26, and stronger ambition for global carbon markets under Article 6 of the Paris Agreement. Furthermore, in an October 2021 ‘Alliance of CEO Climate Leaders’ open letter, Iberdrola promoted a wide range of policies to respond to climate change with increased ambition, including carbon pricing mechanisms.

Engagement with Climate-Related Regulations: Iberdrola has actively and positively lobbied on numerous strands of EU climate policy to promote ambitious climate action. Iberdrola consistently supported an increased 55% 2030 EU GHG target, including in a July 2021 CEO signed joint letter. In a November 2021 EU public consultation response, Iberdrola supported more ambitious CO2 emissions standards for light-duty vehicles, including intermediate targets in 2025 and 2030. A February 2021 consultation response from Iberdrola also appears to support a zero-emissions CO2 standard for new EU light duty vehicles by 2030. In a November 2021 EU public consultation response, Iberdrola supported increased ambition in the EU’s Energy Efficiency Directive, including an exclusion of fossil gas technologies. In a November 2021 consultation response, the company supported at least 40% renewable energy target by 2030, and supported the introduction of targets for renewable hydrogen.

In 2020-21, Iberdrola appears to have supported ambitious reforms to the EU Emissions Trading System (EU ETS) to increase the carbon price and effectiveness of the scheme in numerous EU public consultation responses. This includes advocating for a carbon price floor, a higher emissions cap, increasing the Linear Reduction Factor, strengthening the Market Stability Reserve, and expanded sector coverage in a November 2021 EU public consultation response. In 2020, the company advocated to EU policymakers that the “EU ETS carbon price signal may not be enough” to decarbonize hard-to-abate sectors, which require “other ambitious regulations (both at EU and national level)”. In a November 2021 EU public consultation response, Iberdrola appeared to support the EU’s carbon border adjustment mechanism (CBAM) with some exceptions, as it advocated for a gradual phase out of existing carbon leakage protections without providing a specified timeframe, and supported some form of export rebates. Iberdrola’s US subsidiary Avangrid has been supportive of US state-level emissions trading, specifically in March 2021 supporting Connecticut’s Transportation and Climate Initiative Program in its testimony on Senate Bill 884.

Positioning on Energy Transition: Iberdrola has strongly supported measures to transition the energy mix. Corporate communications from Iberdrola’s website in 2021 suggest support for the urgent decarbonization of the power sector and the rapid electrification of transportation in the EU. In several joint letters in 2021-2022, Iberdrola stated support for the development of solar PV and wind technologies to transition the energy mix, while supporting a phase out of fossil fuels subsidies. The company was also a part of the ‘We Mean Business Coalition’ in September 2021 joint letter that advocated for global policymakers to commit to ending new coal power developments and financing, which included a plan to “phase out coal-fired power generation by 2030 for advanced economies, and 2040 for other countries.”

In a 2021 consultation submission, Iberdrola urged the EU to introduce a 100% electric vehicles sales quota in 2030-2035 to prohibit the sale of internal combustion vehicles. Statements from Iberdrola’s CEO Ignacio Galán have promoted the use of green hydrogen in the EU and to accelerate the energy transition in Spain. In a November 2021 legislative consultation response, the company advocated for the EU’s Energy Taxation Directive to be aligned with the EU’s other climate objectives, calling the taxation transition period for fossil fuels excessive and unjustifiable, while it advocated for renewable hydrogen to be differentiated from other low-carbon technologies. Iberdrola’s US subsidiary Avangrid specifically advocated support for Connecticut Senate Bill 882 requiring the state to decarbonize the electricity supply by 2040 in its March 2021 testimony. However, in a March 2020 testimony, the company opposed Connecticut House Bill 5350 which limited the expansion of fossil gas infrastructure in the state.

Industry Association Governance: Iberdrola fully disclosed all of its membership of industry associations in its 2020 Sustainability Report (published in February 2021), but without providing further details on the company’s role within each association’s governing bodies, nor the company’s influence over climate policy positions. Iberdrola has not published a review of its industry associations. Iberdrola senior executives are on the board of SolarPower Europe and WindEurope, which are both positively engaged with EU climate policy. However, the company is also a member of Edison Electric Institute and Confederación Española de Organizaciones Empresariales (CEOE), trade groups with more mixed engagement on EU policy.