1. Global Utmaning and Iddri,
Swedish Embassy in Paris, October 27,
2010
An International
Climate Investment
Community
- preparing a post-Cancún agenda
to break the political deadlock

2. Why a new European
initiative?
1. The political deadlock in the UN-
process
2. Copenhagen left the business
community ”confused about…the
wider…economic implications”
3. ”The green race” – Asian
competition

3. The political deadlock
- no global treaty in sight
in spite of twenty years of
climate negotiations
- US, China et al are not ready to
agree

4. The investors’ dilemma
- Copenhagen left the business
community ”confused”
-”a stable global carbon price is
neccessary to form the cornerstone
of any successful policy in the
longer term” (IEA)
- still, no global CO2-price in sight

5. ”The green race”
- EU presently the leader in clean tech
export
- Asian countries determined
to win the race

6. Emerging consensus *)
on energy and security
- an energy revolution is needed to tackle
climate change
- reduced global pressure on oil is needed
- a low carbon future is a powerful tool for
economic modernization
*) International Energy Agency, World Bank, EU Commission, Major Economies
Forum, World Business Council for Sustainable Development, European Climate
Foundation

7. Investing in a low carbon
future
- the policy dilemma:
Two main avenues:
- more subsidies?
- or a CO2 price to level the
playing field?

8. A technology neutral CO2
price
The aim:
levelling the playing field between fossil
technologies and low carbon technologies
The level:
- the present CO2 price 15 € a ton is
”subsidised”,
at least 40 Euro/ton is needed by 2020
The effect:
”Pricing carbon .. is the optimal way of
both generating carbon-finance resources

9. Three reasons for
a technology neutral CO2
price
- business and consumers, not
governments, will choose
technologies
- will create clear long term
expectations
for investment
- will bring revenues
for the greening of the tax systems

10. An International
Climate Investment
Community
- a European initiative
- inviting like minded countries
- growing step by step to an
international Community

11. The basic elements
- reforming European emission
trading
- national tax reforms, less tax on
labour, more tax on carbon
- stringent European standards,
stimulating global standards for
energy efficiency

12. - a complementary approach
to the UNFCCC-process, not an
alternative approach
- more flexible, more ambitious
- Sharing opportunites
rather than sharing burdens
- similar initiatives exist, could be
integrated
A concept – not a
blueprint

13. A post Cancún strategy
Input to discussions
among European and likeminded
countries
after COP 16 in Cancun
- some key issues addressed, not all
- to be discussed in Paris, Stockholm,
Beijing, London, Berlin and
Washington

15. Subsidising or pricing
to level the playing
field?
- att all nödvändig teknik blir lönsam

16. A price trajectory
to guide investors

17. Development of the Swedish CO2 tax
general level and industry level
from 2008 industry outside EU Emissions Trading Scheme (EU ETS)
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Carbon tax (euro/tonne) Carbon tax, industry level (euro/tonne)
General level for 2010 level in figure