CO2 Emissions Allowances

Reduce greenhouse gas emissions and support the SSNC in our work on climate change.

Here you have an opportunity to have us buy emissions allowances on your behalf. Your purchase will help to limit the number of emissions allowances that can be traded, while also contributing to our work to combat global warming.

Scientists are agreed that the planet’s climate is changing. The UN’s International Panel on Climate Change (IPCC) published its fourth report on 2nd February 2007. The report confirms that the scientific community are now convinced that human activity is responsible for global warming. That is, we are the culprits. It is our emissions of CO2 and other greenhouse gases that are changing the climate.

Something must be done!  And we have to do it!

Above all, we — each of us — need to reduce our own emissions. But in addition, you or your company can also give the atmosphere a helping hand by buying an emissions allowance through the SSNC.

In order to reduce CO2 emissions from power plants and heavy industry, the EU has introduced an emissions trading scheme. Energy-intensive industries and power companies are allotted a limited number of emissions allowances for a given period within the bounds of an “emissions bubble”. Any company that needs to emit more greenhouse gases than its allotted share has to buy emissions allowances from companies who have managed to reduce their emissions to less than their allotment. The trade takes place on an exchange, where private individuals and organizations like the SSNC, too, can purchase allowances.

One allowance corresponds to one tonne of CO2. Each tonne the SSNC purchases raises the price of emissions allowances ever so slightly, which will make it that much more difficult for companies involved in the trading scheme to emit CO2.  A rise in price gives companies an economic incentive to clean up their act. That is, to increase their energy efficiency and to convert to renewable energy sources. In other words, each purchase represents a small, but concrete step to halt climate change.

The decisive factor is not our buying up allowances, but the kind of political decisions taken here in Sweden, in the EU, and globally. But when you buy an emissions allowance through the SSNC, you automatically support us in our political efforts to (1) encourage and make it easier for individuals, companies and local governments to reduce their emissions, and (2) pressure business leaders and politicians to take the decisions required to substantially reduce emissions overall.

Since the term for current allowances is due to come to an end 31st December 2007, their environmental benefit is gradually approaching nil. In order to make sure that your purchases will have maximum effect, we have begun purchasing allowances for the period 2008-2012, at present in the form of so-called options. That is, we “reserve” a share of the emissions allowances to be allotted in the Spring of 2007 for the coming period. The SSNC will own the allowances, but we assure you that the allowance you purchase will not be used to permit emissions. (The purchaser may print out a certificate that amakes that pledge.)

We must not lose sight of the fact that emissions allowances are only a complement to the more important goal for each of us — to reduce our emissions by changing our behaviour and investing in smart technology.