Problem

In 2023, the Enel Group, an Italian multinational energy distributor and also the biggest power utility provider in Europe, made a pledge to achieve carbon neutrality by 2040, an upgraded target compared to the original 2050. When Enel made its first public commitment to reach zero greenhouse gas (GHG) emissions in 2015, less than half of its electricity production was coming from zero-emission sources. To meet this ambitious target, Enel set interim targets for a 25% reduction in CO2 emissions by 2020, relative to the 2007 levels, and complete phasing out of coal generation in Italy by 2025 and globally by 2030. By 2030, 23 of their power stations in Italy, which represent 13 GW of capacity, are planned for decommissioning, along with a mine in Santa Barbara.

Since the overall transition is expected to affect the jobs of more than 68,000 workers, 44% of them in Italy and the rest across 29 other countries, the decommissioned sites are intended to be converted for alternative use to promote innovation, job creation, and circular economy.

Responses

In its energy transition, Enel promotes a “participatory” management approach, engaging with workers through social workers and trade unions to develop a just transition strategy. This strategy includes early retirement incentives, vocational apprenticeships for younger workers, agreements to relocate employees from fossil fuel plants to greener units, and a protocol of inclusive decision-making.

The strategy was implemented through the Futur-e project, which focused on 23 fossil fuel power stations and decommissioning the Santa Barbara Mine, engaging with local government, communities and businesses to identify sustainable redevelopment opportunities. As of 2019, all workers from closed sites had reportedly been voluntarily relocated; older workers have also been offered early retirement. Some of the old power stations remain in industrial use, while others found a second life as logistic centres, tourism projects, innovative agriculture sites, biotechnology centres, museums or recreational and cultural centres.

Find out more: Enel; World Resources Institute