Climate Lobbying Overview: Fortum is actively lobbying EU energy and climate policy with mixed and potentially inconsistent positions on decarbonisation. Fortum appears to consistently support strong EU GHG emissions targets and reforms to strengthen the EU Emissions Trading System (EU ETS) but has argued against EU regulations to promote energy efficiency and renewable energy, including binding targets. Furthermore, in 2020, Fortum appears to have expressed increasingly supportive positions on a prolonged role of coal in the EU’s energy mix.

Top-line Messaging on Climate Policy: Fortum appears supportive of the Paris Agreement and in 2020 stated that it “should be the number one priority of the next legislature of EU institutions”. In 2018-20, Fortum has consistently communicated support for the 1.5°C temperature goal, including in response to a 2020 EU consultation on the EU’s 2030 Climate Target Plan. However, in 2020, the company has also stressed concerns about technological feasibility and the costs of ambitious emissions reductions. Fortum in 2020 has advocated for a market-based response to climate change, supporting carbon pricing as the EU’s “main instrument” of climate regulation.

Engagement with Climate-Related Regulations: Fortum appears to have consistently lobbied in support of ambitious EU GHG emissions targets. In 2018-20, Fortum stated public support for an EU 2050 climate neutrality target and for increasing the EU 2030 GHG emissions reduction target. In EU climate legislative consultation responses in 2018 and 2020, Fortum stated support for a 2050 EU climate neutrality target. It further supported raising the EU 2030 GHG emissions target to 45% in a 2018 consultation response, and 50-55% in a 2020 response.

Fortum has consistently supported the EU Emissions Trading System (EU ETS), advocating for a market-based EU response to climate change. Fortum in 2018-20 appears to have supported EU ETS reforms in public communications, policy papers, and in multiple 2020 EU consultation responses to increase the carbon price and effectiveness of the scheme. Support for reforms in 2018-20 includes increasing the Linear Reduction Factor, making the double intake rate of the Market Stability Reserve permanent, and extending the EU ETS to the heating and cooling sector. Fortum communications from 2020 also suggest that Fortum supports introducing an EU border carbon adjustment mechanism for the power sector.

However, Fortum’s support for the EU ETS has come at the expense of other alternative and complementary EU climate regulations. Fortum appears to have lobbied against EU energy efficiency and renewable legislation. In a 2020 EU consultation response, Fortum argued that the “EU’s current three target approach (GHG, renewables, energy efficiency) needs to be carefully reconsidered” to prioritize carbon pricing as the “leading instrument”. In a 2020 presentation by their Public Affairs team, Fortum stated that “renewable energy is already mainstream and should be fully market-driven” and that “subsidies for mature RES should be phased out”.

Positioning on Energy Transition: Since 2020, Fortum appears to have communicated positions increasingly supportive of new thermal coal capacity and coal’s continued use in Europe, despite also continuing to communicate support for a low-carbon energy transition. While Fortum in 2020 has communicated general support for “phasing out coal in energy production” without specifying clear IPCC-aligned deadlines, it has also vocally defended the opening of a new German coal plant by its new subsidiary, Uniper. Furthermore, in 2020 Fortum has publicly endorsed its subsidiary Uniper following legal action against a 2030 Netherlands coal phase-out date. However, in 2018-20, Fortum has also advocated to policymakers to support the EU’s energy transition and decarbonization, including in a 2018 consultation on long-term EU GHG emissions reductions. Fortum has further communicated support in 2019-20 for the electrification of buildings, heat, transport and industry and the decarbonization of the economy in CEO communications.

Industry Association Governance: Fortum has publicly disclosed information on its membership to industry associations on a corporate webpage without providing further details on the companies role within each association’s governing bodies or influence over their climate positions. However, Fortum appears to have transparently disclosed its trade association memberships, their climate positioning and Fortum’s influence over, and consistency with their positions in its 2020 CDP response. Fortum states that it is consistent in its climate position alignment with all the trade associations it remains a member of. Fortum is a member of Eurelectric, which is actively lobbying EU climate policy with increasingly positive recent engagement, and the International Emissions Trading Association, which advocates in support of the EU ETS while opposing ambitious EU renewable and energy efficiency legislation.