Australia's largest electricity generator AGL Energy will go "net zero" after abandoning plans to split into two companies.
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Australia's biggest carbon emitter on Thursday announced a shutdown of all coal-fired generation by the end of fiscal year 2035, with annual greenhouse gas emissions to reduce from 40 million tonnes to net zero.
AGL chair Patricia McKenzie said the company will have "net zero" emissions from operations following the closure of the Liddell and Bayswater power plants in NSW and the Loy Yang power station that provides almost a third of Victoria's power.
"This represents one of the most significant decarbonisation initiatives in Australia," she said.
Incoming interim CEO Damien Nicks conceded it would have "a very serious impact on our people and communities".
Shares in AGL were up two cents at $6.62 in afternoon trade, underperforming a strong market.
AGL revealed it would take a $700 million writedown on fast-tracking the Loy Yang exit by a decade and has a review of dividend payouts to come.
Nor was there a decision on closing the Loy Yang coal mine or details on sources of capital to fund up to $20 billion by 2036 for big batteries, solar and wind farms, analysts were told on a conference call.
This includes a new target to have up to five gigawatts of new renewables in place by 2030, up from a planned 3.2GW pipeline of projects.
Earlier this year billionaire shareholder Mike Cannon-Brookes scuppered the energy giant's planned demerger, which would have created an energy retailer and hived off ageing coal-fired operations that would have operated for longer.
Seeking more urgent change, his Grok Ventures investment firm has put forward four independents for election to the board - former energy regulator Kerry Schott, sustainability expert Christine Holman, Tesla's Mark Twidell and experienced board chair John Pollears.
"There is a monumental amount of work ahead," a Grok spokesperson told AAP.
"While this is a positive step in the right direction, as the largest emitter and the leading energy company in Australia, AGL needs to assume a leadership position to achieve a Paris goal of below 1.5 degrees."
Ahead of a showdown at the next annual general meeting, Mr Nicks said the "ambitious" strategy represents a major step forward in decarbonising Australia's economy and offers value to shareholders.
But advocacy group Environment Victoria says 2035 is "an improvement but it is still not credible" and falls short of a plan aligned to the Paris climate targets that AGL shareholders demanded last year.
David Ritter, CEO at Greenpeace Australia Pacific, said AGL has been a "corporate muppet-show ignoring obvious trends in the sector".
The clean energy transition in Australia requires closing the Loy Yang plant in 2030, shutting the Bayswater coal-burning power station by the same date and helping households switch off toxic gas, he said.
Liddell in NSW was already scheduled to close by next year and the Upper Hunter Valley's Bayswater by 2030-33, so the fast-tracking strategy only applies to Loy Yang.
"We need Bayswater in the market until 2033," Mr Nicks said.
AGL also released updated guidance, saying earnings would remain "resilient" with the generator well-positioned to benefit from higher electricity prices.
But the generator said the current economic environment of high costs "remains challenging" for AGL's gas-fired Torrens Island power station, which is more than 50 years old and is South Australia's largest plant.
An update on Torrens is due by the end of the year after talks with the government, the company said.
AGL also published its first climate transition plan, with shareholders to vote on it and new directors on November 15.
Australian Associated Press
