Fortum’s work in mitigating climate change
Climate change is one of the greatest – if not the greatest – catastrophes of our time. Recent IPCC reports show that globally we are not doing enough, and we are not moving at the agreed pace in reducing emissions. We are far from the 1.5 °C target of the Paris Agreement.
The way electricity is generated plays a crucial role in mitigating climate change. Almost three quarters of today’s global emissions are energy related. The Nordic electricity production sector is already largely low emission, thanks to hydro, nuclear and wind power. But more clean electricity will be needed in the future with the further electrification of industry and transport. In terms of climate change, we are in a situation where we need all available clean energy production and flexibility solutions.
Today Fortum is one of Europe’s cleanest energy producers. 98% of the electricity we generate is CO2-free. We are committed to setting science-based short- and long-term climate targets in line with SBTi. We are also committed to phasing out coal by the end of 2027. Achieving these targets is no easy feat; it will require real changes also in our own operations and cooperation with our stakeholders.
Carbon dioxide emissions are still generated in Fortum’s operations through district heating production in Espoo, at waste incineration plants, and from electricity and heat production in Poland. We have made good progress in reducing our direct (Scope 1) emissions through, e.g., the Espoo Clean Heat project; in 2023, our direct CO2 emissions decreased by 27% compared to the previous year. The licence extension granted last year for the Loviisa nuclear power plant also plays a significant role in ensuring that we can produce low-emission electricity also in the future.
Reducing indirect emissions is more complicated because we have no direct impact on them. Last year, almost 90% of our emissions were indirect emissions. The difficulty is compounded, for example, by the fact that there are not always zero-emission options available upstream in our supply chain and, downstream, our customers may not be prepared to buy guarantees of origin to verify zero-emission electricity. This underscores the importance of cooperation; everyone has to do their part.
Biodiversity at the heart of it all
In addition to mitigating climate change, taking biodiversity into consideration has become a key part of sustainability work. Energy production has caused and is causing changes in natural environments. At the same time, climate change is one of the greatest threats to biodiversity. It is important to find a balance between clean energy production and the negative impacts caused by it.
As a result of hydropower generation and regulation, the range and rhythm of the water flow and water level in waterways changes compared to their natural state. Hydropower plants also prevent the natural passage of migratory fish between the breeding and living areas of rivers and the lakes or the sea where they feed and grow. At the same time, however, hydropower plays a vital role in Nordic clean energy production. As the only adjustable form of renewable energy, hydropower balances other forms of energy production, for example on windless days, and reduces fluctuations in electricity prices. Hydropower regulation also plays an important role in protecting coastal areas from flooding. The benefits and drawbacks of hydropower must therefore be constantly weighed from different perspectives to find the best solutions.
For years, most of our voluntary biodiversity projects have focused on improving the biodiversity of waterways. The main projects include, for example, the various fish passage solutions and the restoration of terrestrial environments and breeding areas. The work with local voluntary biodiversity projects will continue in partnership with our stakeholders. For example, we are currently exploring fish passage solutions at the Seitenoikea power plant and the Tainionkoski power plant.
We have set biodiversity targets for our terrestrial impacts. For aquatic impacts, there is no science-based method known to us for setting similar targets, so we are currently working with partners to develop methodology to assess aquatic impacts while also advancing alternative ways to measure our aquatic impacts.
The green transition requires a balance between clean energy production, biodiversity, social impacts and economic profitability
The Nordic countries offer a favourable investment environment for the green transition because our electricity production is already clean – unlike in Central Europe, for example. Enabling industry to reduce its use of fossil fuels will require more clean electricity production in the future. The green transition can create jobs, replace old technology with new, and reduce greenhouse gas emissions, but at the same time it will inevitably have an impact on the local environment – be it in the form of new wind or solar parks, pumped storage power plants or nuclear power plants. Sustainable business also requires that investments be economically profitable, otherwise they will not be made.
In addition to the impacts on nature, the green transition will also affect communities, workplaces, neighbourhoods and electricity customers in many ways. The transition must also take into account regional and structural impacts on employment and livelihoods, as well as the future availability of skilled labour. The goal of a just transition is to ensure that no one is disproportionately affected by the transition to a climate-neutral economy. It must be remembered that even if the transition is good globally, it can have negative impacts on individuals or local communities.
Summary
It is clear that an urgent transition from fossil fuels to clean energy is necessary, and the green transition will also require new investments. At the same time, we need to find solutions to the negative environmental impacts of energy production.
Climate change will not wait so we have to move forward with the knowledge and solutions that exist now. I believe that it is possible to find a balance between business, people and nature. It isn’t easy and there is no perfect solution. But even a small step in the right direction is better than no steps at all. I would like to see a solution-focused social debate on this issue, a debate that takes all parties into consideration.
