Many observers were disappointed with the agreement that came out of the International Climate Conference in Copenhagen at the end of 2009. Since then, climate related issues have not received as much public and media attention.
However, a closer look shows that some progress was made, so that the next international conference can be held at the end of this year, this time in Mexico. Intensive negotiations are under way to move the entire process forward, and Mexico’s climate ambassador, Luis Alfonso de Alba, recently visited Sweden for this. Importantly, he met with business and industry leaders.
“The Confederation supports Mexico fully in their efforts to produce a new global climate agreement. We believe that a long-term global agreement of this kind is the foundation needed to help prevent the climate change we are experiencing. Cooperation through the United Nations is the appropriate platform on which to build a new and better climate agreement. It is also important that businesses and the private sector are fully involved in this process, since this is where innovative solutions can be developed, and above all, where most such solutions can be implemented”, said Ms. Sunér Fleming, Manager for Energy and Climate issues at the Confederation:
She continued that ‘the agreement made in Copenhagen isn’t enough. Though many individual countries have declared specific commitments, the legal basis for such commitments is entirely too unclear. We see many opportunities for the business sector, but the imprecise framework beds for greater uncertainty, making difficult long-term planning for investment, research and development.
The objective for the EU is to agree on 20% reduction in greenhouse gases by 2020, with a willingness to agree on 30% reductions if a worldwide commitment can be reached. The Confederation of Swedish Enterprise supports the 20% goal, and concurs that any greater commitment requires support from all countries.
The EU also leads the world with its European Union Emission Trading Scheme. This system is already implemented to control trading rights for greenhouse gas and other emissions. The Confederation of Swedish Enterprise sees that setting a price on carbon emissions within a trading system that has a set ‘ceiling’ for these emissions is the most cost effective way to reduce overall emissions. However, when applied to only a single region, this kind of system has a negative effect on operations in that region as compared to the rest of the world.
“Expanding this trading scheme or linking it to other similar systems around the world is therefore important”, contends Ms. Sunér Fleming.
Businesses in Sweden and Europe must be able to compete on equal terms in global markets. But the ambitious EU climate policies, including emissions trading, have increased costs for industry in the region, costs that competitors in other regions do not have.
Ms. Sunér Fleming says that the possibilities from various forms of sector-based commitments within a global framework must be considered. This would mean that certain industrial sectors—including operations in countries that lack binding commitments, as with China, India and Brazil—must pay for their emissions. As well, it is important to finance technological transfer to less developed countries.
Since Sweden and the EU cannot solve these climate issues alone, The Confederation of Swedish Enterprise agrees that a new global climate agreement must continue to receive the highest political priority.
“Unfortunately, we have the same view as most others that it will not be possible to come to a final binding agreement in Mexico. But we hope that the conference will help the world move forward on this”, concludes Ms. Sunér Fleming.
