Paris climate agreement will accelerate energy system transformation – advancement must be market-driven

FORTUM CORPORATION PRESS RELEASE, 12 December 2015

The global climate agreement reached at the Paris Climate Change Conference
(COP21) will accelerate energy system transformation and create new business
opportunities.

Especially significant are the Climate Change Conference’s entries on emissions
pricing and cooperative approaches, encouraging the use of market-driven
climate actions. Emissions pricing and emissions trading are cost-efficient,
fair and technology-neutral ways to reduce emissions, accelerate investments
and promote the development of products and services that are more climate
friendly.

“The success of the Paris Climate Change Conference creates a stable, long-term
political framework for the energy sector, a framework that steers investments
to low-carbon production forms. The agreement will accelerate the major energy
system transformation that is already under way and will create new business
opportunities. It is now important that the energy and climate policies of the
EU and the member states support this intent. Market-driven development must be
trusted and the regulations reduced,” says Fortum’s President and CEO Pekka
Lundmark.

Fortum will continue its investments in emissions-free, market-driven energy
production, in line with its strategy. At the same time, the company will
develop new and more efficient energy production forms and will offer its
customers smart solutions to impact energy consumption.

Fortum Corporation
Corporate Communications

Further information:
Kari Kankaanpää, Senior Manager, Climate Affairs, tel. +358 50 453 2330

Additional information about our projects is available at
http://futureenergy.fortum.com/

Paris climate agreement
The ambitious, long-term goal of the agreement signed by 196 countries is to
limit the increase in the global average temperature to well below 2 °C and
even to 1.5 °C. This requires a significant reduction in emissions by all areas
of society, but especially in energy production and energy use, which accounts
for two thirds of global greenhouse gas emissions. The goal of the agreement is
to reach global peaking of greenhouse gas emissions as soon as possible.

In addition to EU emissions trading, there are already several other national
or regional emission trading mechanisms in use around the world. The Paris
agreement will add momentum to their further development and will create
prerequisites for their collaboration and thus for a more global market.

Fortum
Fortum’s purpose is to create energy that improves life for present and future
generations. Fortum’s expertise is in CO2-free and efficient electricity and
heat production. The company also offers energy-related products and expert
services to private and industrial customers and energy producers. Fortum’s
main areas of operation are the Nordic and the Baltic countries, Russia and
Poland. In 2014, the annual sales (excluding the divested electricity
distribution business) totalled EUR 4.1 billion, and comparable operating
profit was EUR 1.1 billion. The company employs approximately 8,000 people.
Fortum’s share is listed on Nasdaq Helsinki. www.fortum.com