A compelling narrative from the Swedish Deputy Prime MInister describing the transformation of Swedish economy through history to now a green economy. She believes as the world combats climate change we are on the verge of a new industrial revolution.
I was invited here today to tell you a story. A story about how a poor country in the north of Europe became a leading green economy. It is a story of efforts and challenges. But more than that it is a story of hope.
My grandparents were born in the 19th century. When they were children, Sweden was still an agricultural economy. But things changed. Sweden had a political shift towards free trade. We started to use our natural resources and export iron, timber and steel.
Since then our economic growth has enabled us to increase our well-being and invest in education, social security and health care. Today, millions of people around the globe want and have the right to make the same journey. But unfortunately it is not possible to copy my ancestors story.
Our industrial development was built on a heavy exploitation of natural resources and dependent on oil. There was a hidden price for our welfare - climate change.
Today I will tell you how we have decided to deal with the challenges that we met. Because I am convinced it is possible to meet the needs of society today and fulfill peoples dreams about a better life. It is possible to
combine welfare development with climate care.
The Swedish success story
Today Sweden has an almost fossil free energy system - except for the transportation sector. Renewable energy makes up 40 percent of our energy consumption. Oil's share of energy supply is less than a third and it will continue to decrease.
Yes, we have had a good start. We are rich in natural resources such as hydropower and forestry. But development has not come spontaneously.
With strong political instruments we have since 1990 managed to increase the share of renewable energy, reduce CO2 emissions by 9 percent and during the same time our GNP has grown by 44 percent.
Part of the Swedish success story has been based on policies that are general in character.
With the introduction of a carbon dioxide tax in 1991 we have put a high price on CO2 emissions. I believe there must be a price on pollution. If that is not the case there is level playfield between those choosing to
take climate care and those who do not.
Sweden' s taxation policy is aimed at improving energy efficiency and encouraging the use of bio fuels creating incentives for companies to reduce their environmental impact.
Step by step we have been shifting towards a green energy system. A national energy efficiency plan, promoting public transportation and an increasing share of combined heat and power production from waste.
In 2003, a market based green electricity certificate system was introduced. The aim is to promote cost effective electricity production based on renewable sources such as bio energy, wind power and hydropower.
It creates a competition between different renewable energy sources. And it gives us the most renewable energy for our money.
And the result is striking: Carbon free heating - in one of the coldest countries in the world!
Next steps
I believe that one of the biggest challenges ahead of us is the transportation sector.
To promote use of more environmentally friendly cars Sweden has introduced special incentives, such as lower vehicle taxes, free parking, a mandate that bigger filling stations must offer at least one renewable fuel. And
last year we introduced a green car rebate of 1500 Dollars per car.
The result has been amazing. In January this year 36 percent of the new registered cars in Sweden where "environmentally friendly". And the number
is increasing.
Another part of the answer is development and introduction of second generation fuels. Such fuels have the potential of becoming more cost and energy efficient than today's alternatives. And make use of a wide variety of biomass from agriculture, forestry and waste.
Sweden, like many other countries, is currently experiencing a fierce debate on bio fuels.
I believe that we must make sure that the bio fuels are sustainable in the long term. We must assure that they do not come into serious conflict with other uses of biomass, like food. Neither can we have bio fuels that harm
the environment.
But I also believe that the 1st generation of bio fuels are better than the fossil fuels they are competing with. And I am sure that without the first generation bio fuels we will not have a second or a third.
Recently, the European Union proposed binding targets for each of the member countries. For Sweden's part, this would mean increasing our share of renewable energy from today's 40 per cent up to 49 per cent. This would be the highest share in the world.
Leadership
There is no doubt that the environmental challenges that we face today pose a serious threat to present and future citizens of the world. A threat to our economies and to the planet we live on.
We need leadership. And action has to be taken without delay in every country and at all levels of society - by governments, researchers, individuals, business and industry.
Europe has set tough objectives to reduce green house gas emissions. The EU has decided on a 30 percent reduction of emissions by 2020 within an international framework.
These are very ambitious goals for Europe. But without global objectives they may have little effect. Europe will urge other developed countries and emerging economies to take an active part in multilateral efforts to
combat climate change. I believe in global cap system. And I welcome the recently announced new directions by President Bush on greenhouse gas emissions.
A golden opportunity
It easy to paint a dark picture. Tough choices to be made between continued global warming or fundamentally changing our lifestyle. This is not the way I see it. My picture is bright.
I see a golden opportunity to develop our industry. It is possible to change our life-style without jeopardizing welfare and to save the world's natural resources. This is an opportunity we can't afford to miss.
Political goals like the European Union's climate and energy package and the initiatives by President Bush send vital signals to the market to step up investments in renewable technology.
I'm convinced that stable long term rules will create dynamics for the market actors creating new jobs and economic growth. Not only for big companies. SME:s, rural communities and farmers can also sit in the front seat.
But as politicians we must also make sure that that new emerging technologies also are affordable in poor parts of the world. Taking care of the environment should not be a luxury only for a selected few. Environmental friendliness should be easy and profitable for everyone.
A new industrial revolution
Change is constant. We have gone through the age of steam and the age of oil. But today we can all see that old-fashioned industrialization poses a major global threat to our ecosystem and also on our economy. Therefore we need a new shift, to an age of renewables. It is now we have to start the next revolution - or, if we manage it right, an evolution.
All countries have the right to have the same living standards as we enjoy in our part of the world. But we have to find ways to do it smarter than the generations before us if we are going to keep the world a place worth living on.
Therefore we have to look at energy and increased use of renewable energy with a broad international perspective. A sustainable solution to the world's growing needs for energy is truly important for peace and security in the world. We have to learn from each other and we have to compete with each other. Globalization makes this possible in a way we have never seen before.
This story began with the achievements of my grandparents. Thanks to their efforts they managed to give me and my generation a better future. I'm proud of their work. But the story that they started has not reached an end. Today we face new challenges. Now is the time for our generation to step forward and take the lead.
Because even though the future might look dark, the story does not have a given end. It is possible to create a sustainable society.
Sweden's success story can not be fully copied by other countries. All countries have their own conditions. But hopefully my story can inspire you to see that there is hope for another future. A future with both welfare and climate care.
Because one day our grand children will ask questions about our generation and our time. I believe we all want to be able to stand in front of our grandchildren, look them in their eyes and honestly say to them "We faced great challenges. But we did our best. We changed the story".
