Scatec ASA

Environmental & Social Information • Apr 13, 2016

Norwegian government buys carbon credits from Scatec Solar

Norwegian government buys carbon credits from Scatec Solar

Oslo, April 13, 2016: Norway's Climate and Environment Ministry has signed an

agreement to buy UN-certified carbon credits from three of Scatec Solar's power

plants in West Africa. About 330,000 tons of CO2 emissions will be avoided from

these solar plants during a three-year period ending 2020. The Purchase

Agreement for the Certified Emission Reduction (CER) includes an option to

extend the contract thereafter.

"Carbon offsets ensures that sustainable projects are implemented with the

lowest possible risk. This contributes to the growth of solar energy in

developing countries, which in turn allows for better and more stable energy and

lower greenhouse gas emissions," says Climate and Environment Minister Vidar

Helgesen.

The Agreement marks a major milestone in the implementation of Scatec Solar's

global carbon strategy that aims to stimulate carbon and climate finance to

accelerate deployment of solar power in the countries most in need of it.

Scatec Solar develops, builds, owns and operates solar PV plants in emerging

markets, focusing on projects that meet the high sustainability criteria set by

the UN's Clean Development Mechanism (CDM). "As a partner for climate action,

Scatec Solar attaches great importance to this because we believe the United

Nations mechanisms provide the highest level of environmental integrity

available in the marketplace," says Terje Osmundsen, Scatec Solar's Vice

President for Business Development.

The first three West African projects to be included in the agreement are being

developed by Scatec Solar in Mali, Burkina Faso and Ghana, says Minister

Helgesen. "This region is struggling with major energy shortage, large

populations without access to electricity, dependence on fossil fuels and high

energy costs." The carbon credit agreement will lower the capital cost risks for

clean and sustainable projects. This in turn will contribute to the growth of

solar plants in these sun-rich countries, enable local utilities to improve grid

networks and generate more solar electricity to fuel development and improve

people's lives.

Carbon credits are valid for Scatec Solar's UN-compliant projects in other

developing countries as well.  "Over half of all developing countries stated

that they wish to continue using the CDM to help deliver national climate change

plans submitted for the Paris talks last year" says Daniel Rossetto, Managing

Director of Climate Mundial, Scatec Solar's carbon & climate finance advisor.

"Scatec Solar's carbon program therefore positions it to make a very important

contribution to countries' climate ambitions both before and beyond 2020".

About 600,000 tons of carbon emissions will be avoided in 2016 from Scatec

Solar's power plants operating in South Africa, Rwanda, Czech Republic, the

United States and Honduras. This is set to increase to 2 million tons by the end

of 2018 with the commissioning of several more solar plants.

Link to press release by the Climate and Environment Ministry (in Norwegian)

Link to interview with Terje Osmundsen (Scatec Solar) by Sysla: "Norsk kvotekjøp

i Afrika har stor symbolverdi» (in Norwegian)

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