The Ministry of Finance of the Russian Federation has approved two Kyoto Joint Implementation projects initiated by Fortum: a new unit at the Tyumen combined heat and power (CHP) plant, and the reconstruction of TGC-1’s Newsky hydropower plant.
These Joint Implementation projects as defined in Kyoto protocol will reduce emissions in Russia, and Fortum will be able to use the related emission reduction units (ERUs) to cover its own emissions in the EU’s emission trading scheme or sell them on the market. Approval from the Finnish authorities is still required if Fortum is to transfer the ERUs from Russia.
“The Kyoto mechanisms are an important tool in our efforts to combat climate change,” said Fortum’s President and CEO Tapio Kuula. “We have already been working persistently with joint implementation projects in Russia for many years, and I am delighted that these projects have been approved. We hope that in the longer term such market-based mechanisms will continue to be utilised to reduce emissions both in Europe and more widely.”
The use of Kyoto mechanisms such as Joint Implementation projects is part of Fortum’s efforts to mitigate climate change. Fortum is currently involved in five further projects in Russia which together with these newly approved projects are expected to reduce greenhouse gas emissions by a total of some 3.5 million tonnes of carbon dioxide over the years 2009–2012. The company has additionally invested a total of 10 million euros in two international carbon funds.