Statkraft and the climate

Climate change and global warming are among the greatest challenges of our day, and the UN climate panel's most recent report from 2013 confirm that the global climate changes are anthropogenic. The IPCC has previously pointed out that increased use of renewable energy may be the single most important measure against climate change. Statkraft offers clean and sustainable energy solutions and in this manner supports a global transition to a low-carbon economy.

Statkraft’s Climate Advisory Panel

Statkraft's activities have a very long perspective and climate change will influence both operations and business opportunities significantly, e.g. through influencing energy sources (precipitation, run-off and wind) and through changes in the political framework.

In order to meet the challenges caused by climate change, Statkraft has established an internal, cross-disciplinary workgroup, Statkraft’s Climate Advisory Panel (CAP). The Climate Advisory Panel's main mission is to coordinate the Group's efforts in relation to climate issues.

In 2013, the panel has worked to raise the Group's understanding of climate issues. Based on information from international processes and key climate issue forums, as well as internal analyses of the climate situation, Statkraft has chosen a specific climate scenario as a starting point for the Group's long-term strategy work.

The Group will contribute to consistency in the choice of global climate models and consider how to apply such models across business units. In some locations, climate change will result in more water, in other locations less. Statkraft can contribute to dampening the effects of climate change by using its own installations for e.g. flood control. In dry countries, reservoirs can also be used for irrigation and water supply.

The picture shows the extent of the flooding in Rena in Norway on 23 May 2013.

Statkraft’s climate programme

Statkraft’s overall guidelines state that our assessments and adaptations in relation to climate changes shall be based on international expertise and recognised research results. On this background, Statkraft established a specific research programme in 2013. The programme will focus on the development of business-specific climate knowledge and will help adapt the global climate models to planning and operation.

The climate programme works closely with Statkraft’s Climate Advisory Panel and has two main objectives:

  • Understanding the physical impact of climate change and recommend possible adaptations
  • contributing to development of scientific methods which can be used to consider how climate change will affect us commercially

The programme will run over several years and has a budget of NOK 10 million per year.

Climate Round Table

In 2013, Statkraft hosted the Climate Round Table with selected participants from commerce and industry, key research environments and NGOs. The Climate Round Table is a debate forum where the objective is to increase the expertise concerning climate issues and establish a common understanding of the role of businesses.

Statkraft’s emissions of greenhouse gases

Most of Statkraft's portfolio is more or less emission-free hydropower and wind power production, and our emissions of greenhouse gases are therefore relatively low. In 2013, the Group's total emissions of greenhouse gases amounted to 460 900 tonnes of CO2 equivalents, corresponding to a relative emission of CO2 equivalents of 9 kg/MWh. Statkraft’s total emissions of greenhouse gases have been reduced by 73% since 2010 due to lower production of gas power in Germany.

In 2013, about 78% of the Group's emissions of CO2 equivalents came from the German gas power plants Knapsack, Emden and Robert Frank. CO2 emissions from district heating amounted to about 17% and came from the non-renewable share of waste and some use of oil.

The Group buys ordinary carbon quotas in the international carbon quota market to compensate for greenhouse gas emissions from that part of the business that is not subject to mandatory quota schemes. This applies to emissions related to fuel consumption, business travel and any accidental emissions of the greenhouse gases halon and SF6. In 2013, the emissions from these sources amounted to 26 100 tonnes of CO2 equivalents.

Emission quota and green energy trading

Statkraft is engaged in trading with all types of carbon certificates permitted in the European Emission Trading System (EU ETS). We trade in EUAs (European Union Allowances), CERs (Certified Emission Reductions) and ERUs (Emission Reduction Units). Furthermore, we participate in projects under the Kyoto Protocol's CDM (Clean Development Mechanism) and JI (Joint Implementation), and buy emission permits directly from such projects. One of our core activities as regards quota trading is the development of products which will help our customers to reduce costs in connection with requirements relating to carbon emission cuts.

Statkraft also offers guarantees of origin, i.e. documents that guarantee what source a given amount of power has been produced from.