European Parliament's backloading vote a disappointment for the climate
FORTUM CORPORATION, PRESS RELEASE 16 April 2013
Fortum considers today’s rejection of the "backloading" of carbon emissions allowances in the European Parliament as a disappointment and a setback for a common European climate policy. The Commission will not withdraw the proposal and will refer it back to the leading ENVI Committee.
Although a final conclusion to the matter still awaits, the decision entails a serious threat for the existence of the most cost-efficient climate policy instrument, emissions trading (ETS). Almost all market-based investments are currently on hold in Europe because of the uncertainty regarding the future climate and energy policy frameworks. The rejection of backloading increases this uncertainty significantly and, now, several years are likely to pass before any further clarification on the future of the climate policy will be achieved in Europe.
Fortum fears that the EU emissions trading scheme may be replaced alternative, more expensive national policies, which will fragment the internal energy market further. If the ETS is watered down, we believe Europe will allow each country take their own course towards introducing carbon taxes and other climate measures. This development would not benefit the society nor consumers.
Fortum is highly committed to climate change mitigation and supports emissions trading as the main climate policy instrument in Europe. Emissions trading effectively promotes the competitiveness of low-carbon energy production and technologies and, at the same time, enables reaching the climate goals in a cost-efficient way.
Esa Hyvärinen, Vice President, Corporate Relations, tel. +358 40 82 62646
Fortum's purpose is to create energy that improves life for present and future generations. We provide sustainable solutions that fulfill 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 Helsinki.
Further information: www.fortum.com