Telenor Plans 40% Cut in Carbon Emissions by 2016

Telenor has announced that it plans to reduce the carbon intensity of its global operations with 40 per cent by 2016, compared to the 2007 level. Telenor is expecting continued strong growth in the business and in network traffic, but the total emissions in 2016 will be reduced to equal the already low 2007-level.

"Our products and services can be a part of the solution to the climate crisis. To do this, we need to start with ourselves," says Head of the Telenor Climate Change Programme, Jon Erik Haug.

The company says that its emissions reductions will be achieved through investments in network updates, renewable energy, increased IT and buildings energy efficiency and purchase of green electricity and CDM-licenses.

"We see that our customers, owners, partners, and employees increasingly expect us to have a clear climate change strategy and that we take the necessary measures to ensure continued sustainability, says Jon Fredrik Baksaas, CEO of Telenor. "At the same time, we will continue grow the business. To achieve both, we need to reduce the carbon intensity of our operations significantly in the course of the next eight years. For this, we need an ambitious and credible goal for what we are going to achieve. This is the first step - now we will immediately take measures to reach the goal of a 40 per cent reduction in carbon intensity," says Baksaas.

With the expected growth in traffic and customers, the new emissions reduction target will mean a reduction of 72 per cent in absolute tons of carbon, compared to the projected emissions in 2016 if no action is taken. This is because corporate and traffic growth is expected to be strongest in markets where energy production largely relies on fossil fuels. At the same time, Telenor's biggest market, Norway, emits very little CO2 from electricity consumption, as most of this electricity is produced by hydropower.

Sun, technology and green power

The strategy to reach the emissions reduction goal involves investments in several areas, such as updating networks, investments in renewable energy for base stations, and purchasing green electricity and CDM-licenses. Among other initiatives, Telenor is developing a pilot project using solar powered base stations in Pakistan. In addition, the company will consider purchases of CDM-licenses. At the same time, Telenor will increase its work to develop solutions that can contribute to reducing CO2 emissions in other industries and for private customers.

"We know the ICT-industry has a considerable potential to reduce emissions in other industries. This is emphasised by the UN climate panel in their latest report, as well as by analysis conducted by McKinsey & Co. To become a part of the solution to the climate crisis, it is imperative that we start by taking responsibility for reducing our own internal emissions, says Jon Erik Haug, head of Telenor's Climate Change Programme.

Telenor will also continue to investigate the potential for other renewable energy sources.

Posted to the site on 24th October 2008