Mundus Nordic Green News – 17 December, 2020

Swedish FSA gives companies heads-up that strict reporting coming

Erik Thedéen, Head of Finansinspektionen (the Swedish Financial Services Authority, FSA) observes the record heat in 2020 and draws the conclusion that very large investments will be required in both infrastructure and technology.

 

He writes that the financial sector has an important role to play by channeling capital to investments in companies and projects that contribute positively to the transition. But for this to be possible, companies must provide more and better information to investors about their climate risks and their climate work. 

 

Thedéen argues that financial markets can be an important part of the solution, if they allowed to do what they are good at - distributing capital and risks and providing incentives for new and creative solutions. Then capital and investments can be channeled away from what is harmful to the climate to businesses that can become long-term profitable because they are sustainable, for example fossil-free steel production, biorefineries and climate-neutral cement development.

 

But in order for investors to be able to put the right price on risks and opportunities in the climate area, they must have access to clear and accurate information on how companies are affected by climate change and how they conduct their adaptation work. For the FSA as a supervisory authority, it is a priority issue to have a uniform standard for sustainability reporting in place. Although two global initiatives are underway to define the path forward, the business community does not have to wait for the global standard. An appropriate first step for all companies is to present climate and environment-related information according to accepted parameters. But, in Sweden today, only 16% of large companies report in one way or another according to TCFD's recommendations

 

Thedéen urges the Swedish business community to invest even more. (Ed note: parallels might be drawn with Sweden’s corona guidelines, where the government urges the population to stay at home).

 

Kvaerner and Aker Solutions win Northern Lights contracts

Northern Lights, an open and accessible infrastructure that enables the transport of CO2 from industrial capture sites to a terminal in Øygarden for intermediate storage before it is transported in a pipeline for permanent storage in a depleted oil reservoir.  

 

The project is being developed by Equinor, who has awarded Kvaerner AS an EPC contract (design, procurement and construction) for the onshore facility in Energiparken in Øygarden. The onshore facility will receive liquid CO2  for intermediate storage and further export via a pipeline for permanent storage under the seabed. The value of the contract is estimated at approximately NOK 1.05 billion. The work is planned to start in January 2021, and is planned to be completed by the first quarter of 2024.

 

Similarly, Aker Solutions AS has been awarded an EPC contract for the delivery of an underwater system for injection into the CO2 well in the North Sea. The value of the contract is approximately NOK 250 million. The work will start in January 2021 with installation and completion in 2023. 

 

Swedish Export Credit Agency finances large solar project in Angola

Angola is dependent on fossil fuels for its electricity generation. However, a new solar project – the biggest of its kind in sub-Saharan Africa, with seven facilities totaling 370MW, is set to increase the share of sustainable energy and facilitate the switch to renewable sources. 85% of the project is financed by an export credit worth €560 million from the Swedish Export Credit Corporation (SEK), guaranteed by EKN and arranged by ING Bank. The project fits the recently raised ambitions of the Swedish export finance system to help combat climate change and support sustainable investments using Swedish greentech. In this instance, the Swedish company involved is Hitachi-ABB Powergrids.

 

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