Finnish utility Fortum urges EU to deepen climate goals after Paris

Published 15:40 on February 9, 2016  /  Last updated at 17:41 on February 9, 2016  /  EMEA, EU ETS  /  No Comments

Finnish power producer Fortum has urged the EU to deepen its climate goals, including tightening the ETS cap by more than proposed, because the Paris Agreement reduces the risk of carbon leakage.

Finnish power producer Fortum has urged the EU to deepen its climate goals, including tightening the ETS cap by more than proposed, because the Paris Agreement reduces the risk of carbon leakage.

Fortum, which also operates in Sweden, the Baltics, Poland and Russia, listed several steps for the EU to take in a position paper published Tuesday to influence lawmakers.

It said the following steps are needed in the development of the EU climate policy after Paris:

  • The long-term target for 2050 to be specified as 95% below 1990 levels based on the 1.5-degree goal.
  • The 2030 emissions reduction target to be adjusted to 45-50% to be in line with the long-term target of 95% reduction.
  • An interim target for 2040 to be specified by 2023.
  • In line with the 95% reduction target, the linear reduction factor of the ETS to be increased to at least 2.6% from 2021.
  • Extending the scope of the ETS into the heating and cooling sectors to be investigated in connection with the revision of the ETS Directive and Effort-Sharing Decision.

EU leaders are due to discuss whether to deepen the bloc’s overall 2030 GHG goal at a Mar. 17-18 Council meeting.

 *Read our analysis on why EU leaders are unlikely to deepen the bloc’s 2030 GHG goal*

The bloc’s lawmakers are also currently debating whether to alter the Commission’s post-2020 ETS reform proposal, and many industry associations, including power producer association Eurelectric, are yet to take a formal position.

Fortum would face lower regulatory costs than many of its competitors under a more ambitious EU climate goal.

Its extensive hydro, nuclear and CHP facilities mean over 95% of Fortum’s power output is emission-free, with just one coal-fired facility in Finland operating mostly as a peak reserve.

By Ben Garside – ben@carbon-pulse.com

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