Fortum commends today's voting result in the European Parliament whereby the amendment of the emissions trading directive regarding backloading was adopted with votes 346-308. The voting result means a temporary withdrawal of 900 million allowances from the market in 2013-2015. Backloading of allowances is the first, although a symbolic measure in strengthening the European carbon market and establishing a clear price signal for CO2-free energy production.
"The positive stance in the Parliament increases confidence in the carbon market. We hope that the Parliament and the Council are able to finalise the decision rapidly in order to implement the backloading. However, a more profound renovation of emissions trading is necessary. The carbon market has to be strengthened by setting an emissions reduction target for 2030 and by introducing e.g. an allowance supply adjustment mechanism," says Fortum CFO Markus Rauramo.
If the EU emissions trading scheme cannot be revitalised, it may 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 is likely to allow the introduction of national carbon taxes and other climate measures. This would not benefit the 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.
Esa Hyvärinen, Vice President, Corporate Relations, +358 40 826 2646
Kari Kankaanpää, Sustainability Manager, Climate and Environmental Affairs,
tel. +358 50 45 32330
Fortum's purpose is to create energy that improves life for present and future
generations. We provide sustainable solutions that fulfil the needs for low
emissions, resource efficiency and energy security, and deliver excellent value
to our shareholders. Our activities cover the generation, distribution and
sales of electricity and heat as well as related expert services.
Fortum's operations focus on the Nordic countries, Russia, Poland and the
Baltics. In the future, the integrating European and fast-growing Asian energy
markets provide additional growth opportunities. In 2012, Fortum’s sales
totalled EUR 6.2 billion and comparable operating profit was EUR 1.7 billion.
We employ approximately 10,400 people. Fortum’s shares are quoted on NASDAQ OMX
Further information: www.fortum.com