10 March Ministry of the Environment and Energy. Strategy for a successful climate conference in Paris 2015

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PRESENTATION 2 MAJOR ENVIRONMENTAL PROBLEMS

U.S. Submission on Elements of the 2015 Agreement Introduction

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Ministry of the Environment and Energy 10 March 2015 Strategy for a successful climate conference in Paris 2015 Climate change is the critical issue of our time. If the temperature continues to rise at the rate currently observed and predicted by scientists, the consequences for life on the planet will be very serious. We are already witnessing a global biodiversity crisis, in which one of the largest species extinctions in the history of our planet is taking place. Our existence relies on resilient ecosystems, since they produce our food, our clean water and the air we breathe. Cohesive global and national political action is needed to ensure a good environment into the future. The effects of climate change affect all countries, but poor and vulnerable countries that do not have the resources to adapt to the changes are particularly hard hit. All countries must make the transition to a sustainable society with low emissions and high resilience to the effects of climate change. If done properly, a transition of this kind also has positive effects on economic developments and poverty reduction, energy security and improved health, as well as important environmental targets such as clean air. It is also important to take account of the challenges that come with such a transition. Sweden is encouraging a broader discussion on how the global investment flows can be aligned so that they support social, economic and environmentally sustainable development with a considerably smaller prevalence of fossil fuels. Important global components include putting a price on carbon dioxide and not subsidising fossil energy. A forward-looking environment and climate policy can solve environment and climate problems and create new opportunities for jobs and development. Cost-efficiency is important to support actions that are as ambitious as possible. Trade and exports, including technology diffusion, are a linchpin for creating

2 economic development. Swedish companies must be able to take the lead for sustainable innovations. The climate is a cross-cutting issue that requires a coherent policy in which climate measures are promoted in all policy areas. Sweden s policy for global development, which takes account of the special needs of poorer countries, is central to this. Similarly, consideration should be given to a feminist approach, based on the different needs of women, girls, men and boys. Climate change is a very important issue in foreign, trade and security policy. An ambitious national climate policy and extensive development cooperation, including through our major contribution to the Green Climate Fund, has made Sweden a credible partner and leading actor on climate issues and in the transition to a more circular economy. The year 2015 is an important one for the Government s international climate efforts. In addition to the international climate conference COP 21, other international processes are under way, such as the UN post- 2015 agenda, the third International Conference on Financing for Development and the development of a new framework for disaster risk reduction. Sweden s actions in these processes must be consistent so that the processes become mutually supportive. A new climate agreement under the UN is crucial to international climate efforts. The agreement should be guided by science and include emission commitments that, over time, can limit global warming as far below two degrees as possible. This will require higher climate ambitions as well as new and enhanced initiatives in every country of the world and among central actors, including Sweden and the EU. COP 21 can provide the political momentum to push forward a higher level of ambition concerning emission reductions even in the EU. Progress is necessary regarding both emission reductions and climate adaptation. Climate financing is important to strengthen climate action. Other tools and instruments for implementation, such as technology development, technology diffusion and capacity development, are also key to achieving the higher climate ambitions. Climate financing will be a crucial issue for whether the world can agree on a new climate agreement in Paris. Overall objective The UN Climate Change Conference in Paris in 2015 results in a global, fair and legally binding climate agreement that over time contributes to

3 keep global warming as far below two degrees as possible. The agreement creates necessary conditions for actors, and places demands on countries, to take responsibility when it comes to climate change and to take increasingly more ambitious action to reduce emissions and contribute to greater resilience against the effects of climate change. Target 1. Higher level of ambition concerning emission reductions Position and measures: EU climate efforts Through joint and cohesive action, Sweden will work to ensure that the EU is able to play as large a role as possible ahead of and during COP 21. It is preferable that in 2015, the EU clarify how it intends to raise the total level of ambition concerning emission reductions. With regard to emissions reductions, the Government considers that an ambition level of 30 per cent reduction by 2020 and 50 per cent reduction by 2030 reflects the EU s responsibility and capability. Such a level of ambition would send a positive signal in the climate negotiations. Sweden is pushing to increase the EU s ambition set for 2020 beyond commitments that have been made. Sweden is proactive in strengthening the price signal within the framework of the EU emissions trading system through such measures as introducing a market stability reserve at an early stage. Action to increase the level of ambition before 2020 will also be taken within the framework of the non-trading sector by individual Member States going beyond commitments already made. Sweden has decided to cancel a surplus of emission allowances allocated in the first commitment period of the Kyoto Protocol. Sweden urges other Member States to likewise cancel their surplus. Action will be carried out by means of national policy instruments. The Government s intention is for the effects of environmental taxes to be increased. Measures can also be facilitated by means of the common goal of allocating 20 per cent of the EU s budget to climate, and follow-up of this goal is necessary. Sweden will push for the EU to reduce its climate impact at the pace necessary for global sustainable development and for the EU s contribution to a climate agreement to include at least 40 per cent domestic emission reductions by 2030 (compared with

4 1990). One way to raise the level of ambition beyond the domestic action is through international emission credits. Initiatives to influence the EU s level of ambition ahead of Paris require continuous efforts throughout the year. The Green Growth Group, comprised of progressive countries in the EU, will be important for identifying and promoting action in the EU. Particularly important partner countries in this context are the UK and Germany, as well as France in its capacity as chair of the Paris Conference and Luxembourg in its capacity as holder of the presidency of the Council of the EU during the Paris Conference. National climate efforts Sweden is tightening its national climate policy and reducing emissions at the rate necessary to contribute to global sustainable development that keeps the global temperature increase as far below two degrees as possible. The Government is identifying additional measures that can reduce emissions by 2020 to achieve the target of reducing emissions by 40 per cent by 2020 compared with 1990 levels for those activities not covered by the EU emission trading scheme. The Government is also working to establish a climate policy framework. The Nordic environment ministers have adopted a common working plan to promote an ambitious climate agreement in Paris. The plan focuses on analytical work, trust building and networking, and concrete action to raise the level of ambition. The Nordic climate cooperation can be further strengthened and broadened so as to influence international climate efforts. One important starting point is the vision that in 2050, Sweden will not have any net emissions of greenhouse gases in the atmosphere, and Sweden will work for a common long-term vision for the Nordic countries. Sweden will be a frontrunner and share its experience of taking early action on climate change. Together with other key actors in various forums, Sweden will also spread awareness that an ambitious climate policy can support long-term economic development and prosperity. The aim is to support other countries when they formulate their climate policy. Promotion of Swedish environmental technology is also important. Sweden will also study the work of other countries and actors so as to develop the Swedish climate policy.

5 The Government is strengthening dialogue and cooperation with external actors such as civil society, the business sector, regions and municipalities. They have an important role in helping the transition to an environmentally sustainable society in that they are given opportunities and take initiatives on their own. They also have an important role in putting political pressure on countries to produce ambitious national contributions and make commitments in a new climate agreement. Dialogue is conducted by means of regular meetings with civil society and the business sector. International climate efforts Sweden will use its influence in multilateral cooperation and the international financial institutions to phase out support to fossil fuel subsidies and to increase investments in renewable energy. The EU special investment plan (the Juncker Plan) will contribute to the transition to a green, resource-efficient economy. In the third International Conference on Financing for Development and the UN post-2015 agenda, Sweden and the EU should be proactive in identifying policy instruments aimed at integrating climate, environment and sustainability in different policy areas and sectors at various levels and so redirect financial flows. Sweden will continue to work on initiatives for international climate investments with developing countries that result in clear effects in the form of measurable emission reductions and by supporting initiatives in development cooperation that contribute to emission reductions and low-carbon development. Sweden will also contribute to globally more accessible and inexpensive environment and climate-friendly technology via negotiations on tariff reductions on environment and climaterelated products, which are expected to be concluded in connection with the WTO meeting in 2015. Sweden has also launched a special strategic initiative to support climate efforts by developing countries and their opportunities to contribute to a new climate agreement in Paris 1. 1 The initiative is being organised within the framework of the development assistance appropriation administered by the Ministry of the Environment and Energy.

6 Target 2. Stronger alliances for a climate agreement and globally sustainable development Position and measures: A good agreement in Paris that over time facilitates keeping the global temperature increase as far below two degrees as possible will only be possible if the countries that have the greatest willingness to reach such an agreement act in unison. Sweden must contribute particularly to strengthening cooperation with the least-developed countries and those that are most vulnerable to the effects of climate change. Sweden must also continue to deepen the dialogue with those who do not share the view of Sweden and the EU in the negotiations. Climate change is a key development issue. Financial support, technology development, technology diffusion and capacity development for climate adaptation and to achieve low-carbon development are particularly important for poor and vulnerable countries. Climate change is therefore given priority in Swedish bilateral and multilateral development cooperation, which makes Sweden a credible alliance partner. Sweden will also build trust through its actions in related international processes such as the UN post-2015 agenda. Climate adaptation is a priority issue. Sweden should try to ensure that the issue gains greater political prominence and is strengthened in EU communications to facilitate a climate agreement in Paris. The Government will act to ensure continued ambitious financing for adaptation initiatives, primarily in vulnerable and poor countries. The Government will also promote technology development, technology diffusion and capacity development, which are important tools for countries transition to a sustainable society with low emissions and to increase resilience against the adverse effects of climate change. The EU must take a constructive position on the issue of climate financing after 2020. Ahead of Paris, Sweden will act to ensure that the EU continues to identify and carry out strategies and measures to increase climate financing before and after 2020 from different sources of financing. Council conclusions from the Environment Council in autumn 2015, as well as climate financing adopted by the Ecofin Council in autumn 2015, are particularly important.

7 Sweden is active in groups of friends such as the Cartagena Dialogue for Progressive Action, which includes countries from Africa, Latin America and Asia, and Friends of Work Stream 2 fpocusing on higher ambition ahead of 2020. Developing countries and emerging economies have great confidence in the Nordic countries. Use will be made of Nordic cooperation to build alliances, dialogue and information exchanges with these countries and others, and to promote concrete action through sharing experiences and cooperating on innovation, investments and policy instruments. During the year leading up to Paris, Sweden s missions abroad will contribute with enhanced climate diplomacy, in accordance with the action plan for climate diplomacy produced within the EU. Target 3. A dynamic agreement that supports increased climate action over time Position and measures: Ahead of and at COP 21 in Paris, Sweden will prioritise the issue of how an agreement should be formulated and filled with content so as to cover sufficient emission reductions over time that keeps global temperature increase as far below two degrees as possible. The agreement must also be formulated so that it lays the foundation for transparency and monitoring of countries commitments and implementation. It must also provide opportunities to monitor whether countries meet their commitments as well asa strong link to science. Sweden will help identify and highlight the results of different analyses of countries overall contributions concerning emission reductions which are expected to be presented ahead of Paris. Continued support to the New Climate Economy project will focus on analyses of how international initiatives and measures can help close the gap regarding existing emission reductions in order to keep the global rise in temperature below two degrees. Sweden is involved in multilateral processes, projects and initiatives to increase the level of ambition and highlight opportunities and advantages of taking early action on climate change. The Government is continuing efforts to reduce shortlived climate pollutants within the framework of e.g. the global Clean Air Coalition (CCAC), the Arctic Council and with Nordic cooperation as a platform. Within the framework of the

8 Montreal Protocol on Substances that Deplete the Ozone Layer, Sweden is proactive in efforts to phase out hydrofluorocarbons (HFCs), which have a strong impact on the climate. Other examples of central contexts and associations in which Sweden actively promotes increasing the level of ambition and highlighting the opportunities and advantages of taking early action on climate change include the UN Intergovernmental Panel on Climate Change (IPCC), the New Climate Economy project and the Friends of Fossil Fuel Subsidy Reform (FFFSR). Appendices: 1. Important dates for climate efforts in 2015.