FORTUM CORPORATION ONLINE NEWS 7 November 2019
In a joint declaration, the CEOs of Fortum, Statkraft and Vattenfall encourage the EU to increase its climate ambition to match the Paris Agreement and enshrine the 2050 climate neutrality target in European Climate Law. Based on this, a cost-efficient emissions reduction pathway with coherent intermediary climate targets for 2030 and 2040 needs to be established.
The three Nordic utilities believe that carbon pricing is key for cost-efficient emissions abatement and climate financing. They recommend integrating the cost of CO2 emissions in the price of carbon-intensive products and activities wider in the economy. Extending the scope of the EU ETS to sectors such as heating and cooling and transport needs to be further evaluated.
In addition to emissions reductions, carbon dioxide will need to be removed from the atmosphere in order to reach carbon neutrality. CO2 removal technologies should be duly recognised in the legislation and be supported to achieve market maturity.
Fortum, Vattenfall and Statkraft see electrification as the most efficient, flexible and sustainable way to decarbonise the economy, in particular industry, transport, heating and cooling. This will be enabled through stronger interconnectors between regions, competitive low-carbon power supply and cross sectoral flexibility.
The Nordic utilities highlight that mastering the financial and social challenge of the energy transition is crucial for success. In order to succeed, costs and benefits have to be fairly distributed and no member state, consumer or citizen should be left behind.
“We at Fortum strongly advocate for the EU climate neutrality target 2050. Setting Europe on a path towards implementation of the Paris Agreement should be the number one priority of the new EU institutions. High climate ambition is a must, but at the same time Europe’s competitiveness has to be ensured, and its key enabler is affordable energy,” said Fortum’s President and CEO Pekka Lundmark during a joint Nordic Coalition event in the European Parliament today.
For further information:
Anne Malorie Géron, Vice President, EU Affairs, tel. +32 47 865 2801
Kari Kankaanpää, Senior Manager, Climate Affairs, tel. +358 50 453 2330