01 March 2023

Today's Top Nordic Green News:

• Europe Divided Over Electricity Market Reform as Proposal Nears
• Danish Council on Climate Change warns of significant risks in government's plan to achieve 2030 climate goals
• Viridor proposes acquisition of Quantafuel to expand plastic recycling capabilities

Europe Divided Over Electricity Market Reform as Proposal Nears

Europe is struggling to achieve a comprehensive and effective electricity market reform. The EU Commission has promised a proposal in mid-March, following a short-term public consultation that ended on 13 February. However, there is deep division among European countries, with Germany and France being the main opposing forces. While southern European countries, with France's support, advocate for rapid and significant market interventions, the northern countries insist that the market should provide the solutions. Germany's position is significant, with its energy and climate minister stressing the need for incentives for investment in renewables, flexible generation capacity, greater flexibility among electricity users and the production of a large part of electricity on a local basis. A new market design should also ensure low electricity prices and adequate security of supply.

The European Union is currently in disagreement over the proposed reform of the electricity market. One point of contention is the proposed introduction of a capacity market, which would allow member states to pay power plants to be on standby during times of high demand. Some argue that the capacity market would distort competition and undermine the EU's efforts to promote renewable energy. Others argue that it is necessary to ensure energy security and prevent blackouts. Another issue is the desire to delink the electricity price from the gas price, with the opportunities that then opens to Russia to apply political pressure. And the role for nuclear power also needs to be agreed.

The European Parliament and the Council of Ministers are currently negotiating the final details of the electricity market reform, with a decision expected in the coming months.

Second Opinion

Danish Council on Climate Change warns of significant risks in government's plan to achieve 2030 climate goals

The Danish Council on Climate Change (Klimarådet) has released a report that warns of significant risks associated with the Danish government's plan to achieve its 2030 climate goals. The report indicates that the current policies and actions taken by the government are insufficient to reach the 70% greenhouse gas reduction target by 2030, and it recommends that more ambitious measures be taken. The report also criticizes the government's decision to postpone the introduction of a CO2 tax on fuels and highlights the need for a more comprehensive approach to climate policy that involves all sectors of society. The report is the third consecutive annual assessment in which Klimarådet has criticised the government's climate policy, stating that it is not aligned with the goals of the Paris Agreement.

Press Release, Press Release, Teknologiens Mediehus, TV2 

Viridor proposes acquisition of Quantafuel to expand plastic recycling capabilities

Viridor, a British recycling and renewable energy company, has made an offer to acquire Quantafuel, a Norwegian company that specialises in chemical recycling of plastic waste, for approximately EUR 107 million. The acquisition will enable Viridor to expand its recycling capabilities and provide a sustainable solution for hard-to-recycle plastics that would otherwise end up in landfill or incineration. The board of Quantafuel has unanimously recommended the cash offer from Viridor to acquire all outstanding shares of the company. 

Press Release, Head Topics,  Market Screener 

European Energy reports a successful 2022

European Energy, a renewable energy company based in Denmark, has reported a successful 2022 with a revenue of EUR 1.1 billion and a doubling of its net profit compared to the previous year. The company's positive performance was largely due to a significant increase in wind and solar energy production, with a total of 1.4 GW of new capacity installed throughout the year. European Energy also expanded its international presence with new projects in Italy, Spain, Greece, and the United States. The company plans to continue its growth trajectory in 2023 and beyond, aiming to develop 3 GW of new renewable energy projects annually. The company's success is attributed to its strong commitment to sustainability, innovation and community engagement.

Press Release, Energy Supply

Removr to receive NOK 36 million for direct air capture pilot

Norway's government has invested NOK 36.3 million ($3.5 mln) in a direct air capture pilot project, the first funding provided by the country for the technology, according to a release Tuesday.

Gas World

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What we're reading

• Fit for the future, not Fit-for-55 (Europe set to meet renewables objective, Ember)
• Mark Carney’s green alliance rides out stormy waters (FInancial Times)

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