Fortum Oyj : Fortum: Commission’s proposal on EU climate policy is a step in the right direction but overlapping targets remain

Fortum Corporation PRESS RELEASE 22 January 2014

The European Commission has today, 22 January 2014, published its proposal for
the EU's climate and energy policy for 2020-2030. It is positive that the main
focus is now more clearly on reducing greenhouse gases. The Commission's
proposed emissions reduction target of 40% by 2030 is in line with the commonly
agreed EU targets set for 2050.

The biggest difference with the current policy is that only an EU-level target
has been set for increasing renewable energy instead of national targets, which
is a step in the right direction. However, the target is binding and thus
overlapping with the carbon emissions reduction target. A better alternative
would have been to put the sole emphasis on reducing greenhouse gases and to
let the energy industry take care of increasing renewable energy in a
market-driven and cost-efficient manner.

"The Commission's proposal is a compromise that doesn't give sufficient
consideration to the impact of energy costs on Europe's competitiveness.
Overlapping targets and steering mechanisms unnecessarily increase the energy
and climate policy's price tag, which ultimately is paid by European energy
consumers and tax payers," notes Esa Hyvärinen, Vice President, Corporate
Relations, Fortum.

Positive in the Commission's proposal is also the stability mechanism for the
emissions trading, which can be used to remedy the central weaknesses of the
current system: the strong fluctuation in demand and the oversupply in the
market. It also reduces political risk, i.e. the repeated interference in the
system rules and in the amendment of them.

"It is important that the Heads of State reach a consensus during spring 2014
on the direction of Europe's energy and climate policy so that policy decisions
can advance to the preparation of legislation. It is essential to now secure an
efficient emissions trading system and examine increasing renewables purely and
simply at the EU-level. This way we can take steps towards at least a slightly
more competitive Europe," Hyvärinen says.

Fortum Corporation
Corporate Communications

Additional information:
Esa Hyvärinen, Vice President, Corporate Relations, Fortum, tel. [phone]
Kari Kankaanpää, Sustainability Manager, Climate and Environmental Affairs,
Fortum,
tel. [phone]

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