Geothermal

Unlocking the Potential of Geothermal Energy

Geothermal energy harnesses heat from the Earth’s interior, offering a clean, renewable energy source. While traditionally limited to regions with naturally fractured rocks and accessible steam or hot water, advancements in technology are unlocking its broader potential. Current estimates suggest that geothermal energy could meet around 10% of global primary energy needs with further technological development. 

Expanding geothermal potential 

Enhanced Geothermal Systems (EGS) are driving innovation by creating artificial reservoirs in areas with hot rock but limited natural permeability or fluid saturation. These advancements are expanding geothermal energy’s geographical reach and enhancing its role in global decarbonisation efforts. 

Addressing greenhouse gas emissions 

While geothermal energy is a renewable resource, power plants can emit greenhouse gases (GHGs) like CO2 and methane (CH4) from naturally occurring non-condensable gases (NCGs) released during energy extraction. 

The Geothermal Energy Criteria assess and limit these emissions through: 

• Emissions intensity thresholds (gCO2/kWh) to ensure alignment with climate targets.
• Multiple methodologies for evaluating emissions in diverse project scenarios, ensuring broad applicability. 

Environmental and social considerations 

The Criteria also address critical environmental, health, safety, and social impacts associated with geothermal projects. All geothermal assets linked to eligible bonds and loans must align with the Paris Agreement’s 1.5°C climate target. 

Supporting climate mitigation 

The Geothermal Energy Criteria are designed to: 

• Incentivise sustainable geothermal projects.
• Promote the greater adoption of geothermal energy in global energy systems.
• Support investments that enhance geothermal energy’s contribution to climate change mitigation. 

Driving a low-carbon future 

With its untapped potential, geothermal energy can play a much larger role in combating climate change. Investments in this clean, renewable resource are critical to achieving a low-carbon future and meeting global climate goals.