We participate actively to promote an effective carbon emissions trading market. Statoil completed the first-ever trade in carbon allowances when the Nord Pool energy exchange opened Europe’s first such market in 2005.
Under the Kyoto Protocol each industrial nation is assigned a specified emission allowance for a defined period. Countries that emit less than their assigned amounts (AAs) in this period, may sell surplus allowances to countries that have surpassed their AAs.
StatoilHydro is also active in the international emissions quota trading market. Statoil completed the first-ever trade in carbon allowances when the Nord Pool energy exchange opened Europe’s first such market in 2005. The company has continued developing its quota trading skills since then.
Active on carbon trading exchanges
The company has been an active player on leading carbon trading exchanges such as the European Climate Exchange, Nord Pool and through bilateral agreements.
Quota trading puts a price on emissions. This allows participants to determine where the costs of actions are lowest. Since the quotas have a value and can be traded, they will stimulate actions to reduce emissions in the most cost-effective places.
StatoilHydro operates facilities which are subject to Norwegian and European climate legislation on emissions quota trading. The quota traded by the company on behalf of StatoilHydro will be used to meet the company’s obligations towards government authorities.
The company must therefore each year submit quotas corresponding to the entire (oil and gas production on the Norwegian continental shelf) or parts (other industry) of the carbon emissions.
