Vattenfall to reduce CO2 emissions by 50% until 2030

At its 2007 Annual General Meeting, Vattenfall presents a new climate target for the company’s power plant fleet.

“Vattenfall wishes to take the lead on the climate issue and today we will set a new long-term target. Vattenfall intends to cut emissions by half by 2030 compared to the base year 1990, while maintaining or even increasing energy production levels. We have already achieved a reduction of 30% since 1990, and our goal will thus be to cut emissions by a further 20% by 2030,” said Vattenfall’s President and CEO, Lars G Josefsson, in his speech to the AGM.

Vattenfall’s climate work is based on three pillars:

· Vattenfall is working internationally to promote a global agreement on the reduction of greenhouse-gas emissions. Vattenfall founded the corporate initiative Combating Climate Change – A Business Leaders’ Initiative (3C). More and more international companies are now joining this initiative, and Lars G Josefsson has also been appointed as an adviser on climate issues to both the German and Swedish governments.
· Furthermore, Vattenfall is increasing its efforts to help its customers save energy. Reducing energy consumption also reduces emissions, and collaboration projects are currently underway with customers such as Holmen, Korsnäs and the City of Berlin (improving energy efficiency in approximately 200 public buildings). This work is symbolised by the distribution of low-energy light bulbs to Swedish and Finnish households during the spring.
· Finally, Vattenfall has announced that it will continuously reduce CO2 emissions from its own plants. Vattenfall will achieve its target by upgrading existing power plants, ensuring that future plants are highly efficient and employing forms of emission free energy production. The single most important investment, however, is Vattenfall’s research and development in the field of CCS (Carbon Capture & Storage), which will make fossil fuels compatible with the climate change quest.

“The construction of Vattenfall’s pilot plant for a lignite-fired power plant equipped with technology for the sequestration of carbon dioxide began in May 2006. The plant, which is being built next to the Schwarze Pumpe power station in eastern Germany, represents a milestone in the development of new technology. Eventually it will be possible to generate electricity in lignite-fired plants without emitting carbon dioxide to the atmosphere – a major contribution to achieving a global solution to the climate problem. Vattenfall is investing approximately SEK 600 million in the pilot plant, which will be commissioned in 2008,” said Lars G Josefsson.

Over the next four years, Vattenfall will invest a total of SEK 134 billion in the development and renewal of its energy production and distribution systems. A large proportion of these investments will go towards the long-term objective of reducing emissions of carbon dioxide from Vattenfall’s own plants to zero.

“We will report annually on the company’s carbon dioxide emissions, so that the outside world can follow our progress towards achieving the target. By 2030, we should have cut emissions by half compared to the level in 1990. We are using 1990 as the base year as this is also the year used in the Kyoto Protocol and in the EU’s targets. This is a radical change, but it will pay off if a global price is set for carbon dioxide. Staying ahead of the demands set by society will also give us an advantage over our competitors.”

For further information, please contact:
Knut Leman, Senior Vice President Communications, telephone: +46 (0) 8 739 50 31.
Martin May, Head of Media Relations, telephone: +46 (0)8-739 52 70.

From Vattenfall’s Press Office, telephone: +46 (0)8-739 50 10.