Nordic utility CEOs united for a cost-efficient decarbonisation of Europe

Increased climate ambition is needed to meet one of the greatest challenges of our time 

Fortum, Statkraft and Vattenfall, the three largest Nordic utilities, fully support the EU’s overarching goal of making the EU economy climate-neutral by 2050. However, although many countries have started to deliver on the Paris Agreement, efforts must be greatly intensified across all regions and sectors.

We believe that the next 10 years will be decisive to limit global warming to maximum 1.5 °C. Aligning the 2050 and new 2030 EU climate targets with the Paris Agreement and enshrining them in legislation now is therefore
a unique opportunity. We call on Member States to put the EU on the right path by supporting a prompt adoption of the proposed Climate Law and enabling a timely delivery of the EU’s updated pledge to the UNFCCC by the
global deadline in December 2020.


Green EU recovery plan brings benefits to Member States

The threats of climate change will persist also after the current health and economic crisis. We therefore call on Member States to keep the European Green Deal as the compass when designing the economic recovery measures. An integrated policy approach is needed to ensure a timely and cost-efficient path towards a green recovery and climate neutrality. We remain fully committed to satisfy the increased energy demand with CO2-free electricity. In addition, we want to actively contribute to the decarbonisation of the European economy through direct electrification and supply of clean gases to buildings/heating, transport and industry. This will provide long-term benefits by increasing cost- and energy efficiency, reducing import dependency, and creating growth and jobs. In addition, carbon pricing secures highly needed public revenues for Member States to finance the recovery.

A higher EU 2030 climate target of at least -55 % is promptly needed

The EU Commission’s new Impact Assessment clearly demonstrates that a GHG emissions reduction target of at least -55 % compared to 1990 levels is both feasible and beneficial for Europe. Effective policies should ensure a
cost-efficient pathway towards climate neutrality by providing early, strong and transparent price signals for sustainable choices in future-proof investments and consumption, thereby avoiding lock in of carbon-intensive
activities. Only then will the required investments in assets and  infrastructure be made timely and in sufficient volumes. We call on Member States to agree upon the Commission’s proposed 2030 climate target during 2020 and to swiftly adopt relevant legislations accordingly.

Strengthening and enlargement of the EU ETS is required to deliver increased EU climate ambition

We fully agree with the Commission's commitment to the EU ETS as the core climate policy instrument. The EU ETS needs to be further strengthened and enlarged to drive the transition towards a climate-neutral economy in an effective and technology neutral manner. In our view, carbon pricing should also be applied as broadly as possible in the economy, although supported by other instruments in the non-ETS sectors. We believe that the Commission’s upcoming legislative proposal for the revised EU ETS directive must focus on quickly aligning the Linear Reduction Factor (LRF) with the new EU climate target and securing a strong Market Stability Reserve (MSR) that can tackle market distortions and policy overlaps also beyond 2023.