Fortum comments on EU cut of Finland's CO2 emission allowance

Nordic Business Report, June 4, 2007

NORDIC BUSINESS REPORT-4 June 2007-Fortum comments on EU cut of Finland's CO2 emission allowance(C)1994-2007 M2 COMMUNICATIONS LTD http://www.m2.com

Finnish energy group Fortum Corporation said on Monday (4 June) that the European Commission's decision to lower Finland's carbon dioxide (CO2) emission allowances for the 2008-2012 trading period by 5% was more or less as expected.

The Commission has consistently cut member states' proposals for allocations to industry included in the European Union Emissions Trading Scheme, according to the company.

The Commission based its decision on the actualised emissions in 2005, but using a single year as reference cannot be considered fair practice, Fortum claimed.

Fortum said the decision means that further cuts will be implemented primarily in electricity production. It also claimed that emissions allowances for condensing power are cut in such a way that it will get about 15% of the allowances it is expected to need.

Fortum, based in Espoo in Finland, is a leading Nordic energy utility with some 9,000 employees and annual sales of EUR4.5bn. Fortum is listed on the Nordic Exchange in Helsinki.

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