The Clean Development Mechanism (CDM) is a measure under the Kyoto Protocol to mitigate greenhouse gas emissions. An emission reduction initiative, registered as a CDM-project, will then have their emission reductions certified. Upon certification, the CERs become tradable commodities in the carbon market and may be used – in line with EU Allowances - to comply with emission obligations. To qualify for CDM status, a project must meet stringent environmental and social requirements and be located in a developing country that has ratified the Kyoto Protocol.

Statkraft takes an active role in carbon emission trading - through its Amsterdam office - although it does not have any CO2 compliance obligations itself. CERs from CDM projects are an obvious extension of its carbon portfolio. These activities are important for Statkraft as they allow us to capture early entrant opportunities, while at the same time developing our insights into how the carbon market will affect electricity prices on the Continent and in the Nordic region. CDM projects are normally conducted through participation in funds established by entities such as the World Bank, or handled directly by Governments. The Corobrik transaction is the first project-based CDM deal done by Statkraft and probably one of very few done directly by a single Scandinavian company.

For further information please contact:
Stef Peters   stef.peters@statkraft.nl
Maria Cappelen  maria.cappelen@statkraft.nl
Phone    + 31 (0)20 347 2780
Contact   CO2@statkraft.nl