As part of a European Union response to skyrocketing power costs, the Finnish government announced on Thursday that it had proposed a temporary windfall tax on earnings from the nation’s electricity corporations. Fortum is the biggest one.
The government estimated that the proposed 30% tax, which would be levied on income in excess of a 10% return on capital in 2023, could generate between 500 million and 1.3 billion euros ($533 million-$1.9 billion).
In a separate statement, Finnish utility Fortum, which generates about a third of the nation’s electricity, said it will carefully review the proposal.
If the tax helps in energy transition…
Fortum is a key player in the transition that is taking place in the whole energy industry. The need for fundamental changes in society is growing quicker than climate change itself. Thus, the rise of taxes will comply with the company’s claims for sustainability.
Fortum’s strategy is centered on sustainability, as the company itself says. They spearhead the transition to a carbon-neutral economy in the energy sector. A successful transition must strike a balance between affordability, supply security, and sustainability. In addition to nuclear power, clean hydrogen, energy storage, and other adaptable options, this calls for the use of renewable energy, says the company website. The company offers clean energy and sustainable solutions to our industrial and infrastructure customers since greenhouse gas emissions need to be decreased in other areas besides electricity.
Fortum claims they care for nature and people, so should accept the new tax
The company says they pay great attention to the effects their activities may have on their employees, contractors, and the community in addition to climate and resource issues. Maintaining company continuity and ensuring the health and safety of its personnel and contractors were Fortum’s top responsibilities.
In 2013, Fortum signed up for the UN project Caring for Climate. They participate yearly in the CDP Climate Change questionnaire assessment and post their assessment on the CDP website, which satisfies the reporting requirements of the Caring for Climate initiative.
Fortum’s strategy is a clean energy transition
Fortum states, as a next step, reassess its stand-alone strategy with a primary focus on sustainable power generation, the security of supply, and affordable energy in light of the current prevailing uncertainties and the energy crisis in Europe. Fortum’s CO2-free generation resources are now more important than ever in this situation.
Fortum is in a good position to seize the opportunities presented by the energy shift intended to slow global warming. The energy transition needs to strike a balance between affordability, sustainability, and supply security.
In order to provide supply security and completely decarbonize industry, transportation, heating, and cooling, the energy transition requires not just renewable energy sources but also energy storage technologies and other adaptable solutions. Building on our current successes, we will generate CO2-free electricity in the future while also decarbonizing society and our own operations through sustainable change.
Fortum’s top priorities are to complete the Uniper divestiture process, leave Russia, and maintain the Group’s liquidity in the extremely volatile and high-priced energy market.