Fortum is satisfied with today’s voting result in the ENVI Committee of the European Parliament on the so-called backloading proposal of the EU’s emissions trading scheme (ETS). Backloading of allowances is a first, but modest, step in strengthening the European carbon market and establishing a clear price signal for CO2-free energy production.
“The voting result is a positive and clear political signal of the EU’s further commitment to the emissions trading system. We hope that the Parliament and the Council are able to finalise the decision rapidly. Almost all market-based energy investments are currently on hold in Europe because of the uncertainty regarding the future climate and energy policy frameworks. In this situation quick action is needed to strengthen the carbon market and to establish a clear price signal for CO2-free energy production. Backloading of allowances is a first, but modest, step,” says Markus Rauramo, CFO at Fortum.
“The EU should now – still during the current Commission’s mandate – make a proposal on the 2030 emissions target and on the structural reform of the ETS,” Rauramo continues.
If the EU emissions trading scheme cannot be revitalised, it could be replaced by alternative, more expensive national policies, which will fragment the internal energy market further. If the ETS is watered down, the European Union will allow each country to introduce national carbon taxes and other climate measures. This would not benefit society or consumers.
Fortum is highly committed to climate change mitigation and supports emissions trading as the main climate policy instrument in Europe. Emissions trading promotes the competitiveness of low-carbon energy production and technologies, while enabling climate goals to be reached at the lowest cost. The Commission has proposed the backloading of 900 million allowances to be auctioned in 2013-2015 until 2019-2020.
Esa Hyvärinen, Vice President, Corporate Relations, Fortum, tel. +358 40 82 62646
Kari Kankaanpää, Sustainability Manager, Climate and Environmental Affairs, Fortum,
tel. +358 50 45 32330
Fortum's purpose is to create energy that improves life for present and future
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