Carbon Pricing Reduces Carbon Footprint

Landsvirkjun’s energy generation leaves one of the lowest carbon footprints or 1.1 CO2-eq/kWh globally. The Company takes responsibility for GHG emissions from its operations and will be carbon neutral by 2025.

Since 2018, Landsvirkjun has successfully used carbon pricing as an instrument to reduce its carbon footprint.

Landsvirkjun’s carbon price for 2023 is USD 144 for each CO2 equivalents, which supports the Company’s goal of carbon neutrality and lower emissions.

Landsvirkjun calculates the internal carbon footprint to make informed decisions on greenhouse gas emissions from its operations. This means that GHG emissions – or rather future costs of emissions – are factored into the more significant financial decisions for everything from procurement of operational goods to selecting the site and design of new power stations.

Carbon pricing puts a price tag on each tonne of emissions and discloses Landsvirkjun’s willingness to pay to reduce emissions. Furthermore, the Company uses carbon pricing to encourage its contractors to reduce their GHG emissions during construction, or other projects, in or at its power stations.

In 2022, the carbon pricing mechanism covered only 25% of global GHG emissions. However, when more companies adopt carbon pricing, the action for the necessary energy transition becomes more targeted, and our collective goal of reducing GHG emissions globally will be reached sooner.