Climate change continues to be a central issue of engagement with many of our stakeholders. Questions range from how fast AEP can exit coal and clarity on the 2030-2050 transition pathway to the alignment of our capital expenditure plan with our climate strategy. These are fair questions, and the discussions we have with stakeholders are candid, honest and transparent.
Our goal is to reduce AEP’s carbon emissions from directly owned generation (scope 1) 80% by 2030 compared to 2000 levels and to achieve net-zero emissions by 2050 (scopes 1 and 2). The climate scenarios we conducted showed that we can reach more than 95% toward zero by 2050 with conventional technologies, and we remain hopeful that emerging technologies such as advanced nuclear, carbon capture, hydrogen and energy storage will help us close that gap. Through the end of 2021, AEP has reduced its carbon emissions 70% from 2000 levels. We are committed to periodically reviewing these goals as we work toward a clean energy future.
AEP is a founding member of the Electric Power Research Institute’s Low Carbon Resource Initiative, a partnership with the Gas Technology Institute to develop and deploy technologies and alternative resources beyond 2030 to achieve a mid-century net-zero economy. In 2022, AEP joined EPRI’s new, three-year initiative, Climate READiTM: Power (REsilience and ADaptation initiative), convening global thought leaders and industry stakeholders to develop a common framework to address physical climate risk. These important initiatives are essential to gaining clarity on how to address climate-related risks and invest in a resilient energy system.
We continue to work toward achieving our near-term goal of reducing CO2 emissions 80% by 2030. Beyond that, the path to net-zero emissions by 2050 is less certain. While we believe technology and alternative resources will be a major factor in achieving a net-zero economy, we currently cannot provide a precise path for getting to net-zero between 2030 and 2050. AEP’s goals and our strategy for transitioning are driven by our integrated resource plans, which are overseen by state regulators. Increasingly, we have seen renewables become more cost competitive, enabling AEP to invest in economical clean energy resources that also reduce our carbon footprint. In addition, many of our customers want clean energy for their homes and businesses. Our strategy is to meet that demand where regulators support it.
Part of the conversation we have with some stakeholders is the question of when AEP will be fully out of coal-fueled generation. In total, from 2011 to 2021, AEP has retired or sold more than 13,700 MW of coal-fueled generation, and we have plans to retire another 5,300 MW between 2022 and 2028. That will leave five remaining coal plants on our system totaling 6,500 MW. The timing for full retirement of coal-fueled generation assets will be based on a combination of factors, including expected investments for operations, overall economics, useful asset life and depreciation rates, and reliability factors highlighted in our integrated resource plans. In addition, we rely on our partnerships with our state regulators and local communities to assess the economics, timing and impacts.
2021 marked an important milestone in AEP’s clean energy transition when the company announced a plan to shift our generation portfolio from majority fossil fuel to majority renewables by the end of this decade. The strategy proposes adding approximately 16 gigawatts of new regulated renewable resources by 2030. We continue the process of filing plans within our state jurisdictions to advance this strategy.
We are also often asked if our carbon goals are third-party certified through the Science Based Target Initiative (SBTi). At this time, our goals are not SBTi certified. However, we continue to monitor and engage with SBTi as the methodology and our plans for future generation needs and emission reductions evolve.