Locale : Global (English)
Natural Gas Power Guidance Note
We supported CDC to identify the role of gas-fired power plants in energy system pathways that align with the Paris Agreement.
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Guiding greener energy investments

Sourcing energy from natural gas can, in certain circumstances, be part of the move towards global net-zero emissions by 2050.

Our expertise is helping to ensure the UK government’s investments in Africa and Asia align with the Paris Agreement and boost social outcomes.


CDC Group, the UK government’s development finance institution, wanted to develop guidance to ensure its natural gas power plant investments are aligned with international climate change goals under the Paris Agreement. CDC recognises the need to operate within the remaining global carbon budget to limit the rise in average global temperature to 1.5°C. Through its activities in target countries, CDC is supporting economic development that is socially just, improves standards of living and meets the twin challenge of building resilience to the physical impacts of climate change while supporting the move towards net-zero carbon emissions by 2050 in the markets it invests in.


We supported CDC to identify the role of gas-fired power plants in energy system pathways that align with the Paris Agreement, and to develop an assessment framework for natural gas investment opportunities. The framework included both asset and system level indicators, covering key issues such as emissions intensity, the availability of lower carbon alternatives, system requirements for flexibility and reliability, contractual incentives, the risk of carbon ‘lock-in’, alignment with countries’ long-term decarbonisation plans and the potential to transition an asset to lower carbon fuels over time.


CDC’s Natural Gas Guidance Note was launched in December 2020 alongside its new fossil fuel policy and following its climate strategy published earlier in the year. The guidance note is publicly available and is now used to inform investment decisions around the world, supporting energy infrastructure aligned with the Paris Agreement and better social outcomes.

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