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CLIMATE ROUNDTABLE - TOWARDS A GREENER FUTURE
The capital markets are inevitably realising the potential the
green shift holds for future profitability. Citigroup, for instance,
plans to lend, invest and facilitate deals worth $100 billion
by 2025 to support projects that will fight climate change and
protect the environment.
The role of business must change but there is no silver
bullet. What is promising, though, is the wealth of evidence
that validates the measures and actions that can be taken to
achieve this double-pronged success of economic growth and
climate stewardship. It is encouraging to see how new players
– Microsoft and Google among others – that have previously
been disassociated from the energy industry, are making
significant long term financial commitments both to meet their
carbon footprint targets and to leverage the potential this new
opportunity presents for the future.
At the same time, around USD 500 billion is spent annually
to subsidise fossil fuels. The transport sector still depends
largely upon fossil fuels, and energy from coal, oil and gas
are still predominant on a global basis. The green transition
is dependent upon businesses as a driving force, but policy
makers and the public are both elements the transition
depends upon. Without a market, no business can thrive.
And without the right political framework (CO
2
taxes, green
subsidies, etc.) the profitability is in many cases too low to
encourage the necessary business activity.
At Statkraft, our long term ambition is to keep up our growth
as a profitable international leader in pure energy. Since 2010,
we have invested more than NOK 27 billion in renewable energy.
As 2014 came to an end, our international growth strategy got
the stamp of approval from the Norwegian government, injecting
new equity and reduced dividends to increase national and
international investments in renewable energy for a total of
NOK 60 billion over a period of five years.
We currently have operations in over 20 countries, and this
year we will mark our 120-year anniversary by opening new
hydropower plants in Turkey and Peru. Both countries are key
markets for Statkraft, due to their growing energy demand,
economic growth and hydropower resources. Earlier this year
Statkraft acquisitions of developing rights for a new offshore
wind project in the UK and several onshore wind projects
are under development. Our core strategy today is to provide
renewable energy through hydropower, wind power, district
heating and other technologies, but also explore business
opportunities in other energy sources such solar energy,
for example.
As one of Europe’s most experienced producers of clean
energy, these are exciting times for Statkraft. We are
continually assessing our energy portfolio, testing out new
forms of energy, allowing for flexibility and efficiency in our
production systems. We have strong production and market
competence and a robust financial position, but competition
is fierce, and we will have to fight hard and smart to stay
highly profitable in the green shift.
Nobody can predict exactly what the future looks like,
or which technologies or disruptions will dominate future
businesses, but if we make the right choices now, there
is a brighter, greener and profitable future ahead of us.
What is promising, though, is the wealth of
evidence that validates the measures and
actions that can be taken to achieve this double-
pronged success of economic growth and climate
stewardship.
Christian Rynning-Tønnesen,
Statkraft