Nordea Latvia signs the first CO2 quota deal - first such deal in the Nordic and Baltic banking sector
Nordea Markets Latvia specialists have signed a deal about carbon dioxide emission quota trade in European Union, wherewith it’s first such type of deal in the Nordic and Baltic banking sector.
By joining the EU, companies of Baltic countries are adapting to EU rules and standards. One of EU priorities, in conformity with ANO Kioto note about climate changes, aims to restrict amount of CO2 pollution, which is very nocuous and causes greenhouse effect and thus - global warming. In conformity with the EU directive 2003/87/EK, a system of CO2 emission quota trading was developed for the EU countries and quota trading for period from 2005 till 2007 was began. In the foundation of such trading are the EU National emission quota distribution plans, accepted by the European Commission.
Within the framework of this deal Nordea Bank realized quota residue to the EU total pollution quota market for one of the bank’s customers. The company’s quota residue in 2005 year was as a result of technology modernization thus significantly decreasing volume of gases omitted. Logically, new nature-friendly technology implementation has extremely positive effect on Latvia’s nature and also offers additional financial benefits to the company.
“Quota trading is one of newest services of financial markets that we can offer to our customers in Latvia. Active trading of CO2 quotas
within the EU takes place for about a year already, and many companies in Latvia, which have such quotas, should have received offers from
international intermediaries to purchase or sell their quotas. Benefit of Nordea Bank is the knowledge of local market and the financial
reputation,” notes Mr. Ritvars Kumpins, Head of Nordea Markets Latvia. “This deal is amazing experience. The potential volume of
quota trading in Latvia is not assessed yet, but it is obvious that the vast amount of power stations, cogeneration stations, manufacturing heating
and local energy manufacturing companies use fossil as raw material for energy production and thus are CO2 emission quota receivers.”
The aim of CO2 quota system is to restrict environment pollution. If the pollution volume exceeds the assigned quota, it means that companies are forced to buy quotas from businesses that have quota deposits. The more such customers, the higher CO2 price will be, and companies will be motivated either to restrict emission or improve efficiency of technologies thus restricting long-term pollution on the environment.
Additional information: Mr. Ritvars Kumpins, Head of Nordea Market Latvia, tel. +371 7 096 216, mob. +371 29 224 959, e-mail firstname.lastname@example.org