Statkraft and the climate
Statkraft offers clean and sustainable energy solutions and in this manner supports a global transition to a low-carbon economy. Climate change and global warming are among the greatest challenges of our day, and the UN Climate Panel's fifth Assessment Report issued in 2013-2014 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.
A broad group of scientists, business executives, NGO leaders and politicians gathered at Statkraft’s conference center Vang Gård in Norway to find new solutions to climate change.
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, and 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.
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.
Corporate Management adapted a climate policy statement in 2014 which states that Statkraft’s most important contribution in relation to climate change is contributing to the transition towards a low-carbon society and the development of a climate resilient economy. Statkraft’s most important contribution is to – in a sustainable manner – produce renewable and flexible energy which can facilitate more variable energy sources (solar and wind). Statkraft’s climate assessments are to be based on research, in-depth analysis and scientific evidence. Central to this is the IPCC assessments and the UN climate convention.
Statkraft’s climate programme
Statkraft’s assessments and adaptations in relation to climate changes shall be based on international expertise and recognised research results. On this background, Statkraft has established a research programme which focuses on the development of business-specific climate knowledge and will contribute to 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 Statkraft commercially
The programme will run over several years and has a budget of NOK 10 million per year.
Statkraft’s emissions of greenhouse gases
Most of Statkraft's portfolio is more or less emission-free hydropower and wind power production, and the Group’s emissions of greenhouse gases are therefore relatively low. The majority of the Group's total emissions of greenhouse gases come from the gas power plants in Germany. For Statkraft’s consolidated power production emissions of CO2 equivalents amounted to 313 000 million tonnes in 2014 and 257 600 million tonnes in 2015. This corresponds to a relative emission of CO2 equivalents of 6 kg/MWh in 2014 and 5 kg/MWh in 2015.
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 2015, the emissions from these sources amounted to 55 800 tonnes of CO2 equivalents.
Emission quota and green energy trading
Statkraft actively sells certified electricity from renewable sources to distribution companies that want to or are required to supply their customers with green electricity. Statkraft sources and markets these certificates under Europe-wide schemes as well as national schemes in the UK, Italy, Poland and in Norway/Sweden.
Statkraft is also engaged in trading emissions worldwide. We actively trade the major carbon currencies and deal with compliance companies looking to satisfy their obligations under the European Emission Trading System (EU ETS). With new carbon markets developing worldwide, we increase focus on our international activities.