Norwegian Climate Impact Report Reveals 7.2 Million Tonnes of Avoided CO2 Emissions by 2030

Nysnø, the Norwegian state-owned climate investment fund, has unveiled its inaugural climate impact report, showcasing the significant contribution of its portfolio companies in mitigating future greenhouse gas emissions. Applying its methodology for calculating avoided greenhouse gas emissions, outlined in the earlier report “How to measure climate impact,” Nysnø estimates that its direct investments will contribute to avoiding 7.2 million tonnes of CO2 emissions by 2030.

Avoided emissions, also known as scope 4 emissions, quantify the greenhouse gas emissions that will not be released into the atmosphere or removed from it due to the implementation of climate technologies compared to current solutions. Nysnø’s climate impact report highlights how its portfolio companies leverage innovative climate technologies and solutions to drive this reduction in emissions.

While the accounting of avoided emissions is still in its nascent stages, Nysnø has collaborated with other prominent climate investors in Project FRAME to develop a standardized method for calculating both realized and forward-looking avoided emissions.

“We have identified and quantified the different climate effects provided by our portfolio companies, and now we, for the first time, publish the impact of our portfolio towards 2030. The calculations include both realized and estimated future CO2 reductions based on realistic growth projections for the respective companies, adjusted for our ownership share,” explained Jean Baptiste Curien, Director of Climate Technology at Nysnø.

Nysnø has played a significant role in the growth of more than 185 companies through its portfolio of companies and funds. It’s worth noting that the methodology applied in this report pertains to Nysnø’s direct investments and does not encompass the fund investments. However, the fund is committed to incorporating the climate impact of the indirect portfolio into future assessments. Nysnø has established clear goals and specific climate targets for the portfolio, which are detailed in the organization’s annual report for 2022.

Recognizing the increasing dedication of the investment community to reducing emissions, Nysnø believes that avoided emissions will become a key metric used to measure the performance of companies. The fund’s approach to calculating climate impact aligns with the financial returns framework, which considers expected future cash flow and risk.

“Our long-term goal toward 2050 is to contribute growth capital to hundreds of climate technology companies that collectively contribute to realizing a net-zero emissions society,” stated Jean Baptiste.

Nysnø hopes that the release of this report will inspire the ecosystem to adopt avoided emissions accounting and take meaningful steps toward addressing climate change.