Vattenfall Calls for Global Emissions Trading Scheme

Vattenfall’s President and CEO Lars G Josefsson called for a global price on emitting carbon dioxide during his presentation at the 14th Session of the U.N. Commission on Sustainable Development in New York. Mr Josefsson also announced the “3C” global business leaders initiative on combating climate change.

In a ministerial dialogue meeting with international energy ministers and CEOs of global corporations Mr Josefsson said: “It is very clear that we must drastically reduce the current levels of CO2-emissions. The most pressing need is to create a credible, stable and predictable long-term framework defining how reductions will be achieved.” To Mr Josefsson a market related solution is crucial: “We must do all we can to set the correct price on emissions and the pricing must be as global as possible. The only possible way to do this is to make use of market forces, i.e. a global system for emissions trading must develop.” Mr Josefsson believes that the business community’s reluctance to take a clear stance on climate change must be overcome: “Instead of being pulled by society, business leaders should be pushing and in a positive way integrate climate change issues into the world of markets and trade on a global scale.” His efforts to convince his peers in the energy industry resulted in a Business Leaders Initiative on Curbing Climate Change. Companies signing the agenda commit themselves to creating and promoting a roadmap towards a low-emitting society. Mr Josefsson also referred to Vattenfall’s proposal for an adaptive burden-sharing model for curbing climate change that was initially presented during the World Economic Forum in Davos in January 2006. Vattenfall's model is based on the principles that all countries should participate in reducing carbon dioxide emissions. However, no poor country shall be denied its right to economic development while no rich country shall have to go through disruptive change. The extended version of Mr Josefsson’s U.N. statement is available at: http://www.vattenfall.com/menu/News_and_Comments/Speeches/un_speech.asp An extensive background to Vattenfall’s model, the report ”Curbing climate change – an outline of a framework leading to a low carbon emitting society” is available at http://www.vattenfall.com/files/news_and_comments/climate_change_report.pdf For further information, please contact: Martin May, Vice President Media Relations, telephone: +46-(0)8-739 52 70. Arne Mogren, Vice President Public Affairs, telephone: +46-(0)8-739 52 34. From Vattenfall's Press Office, telephone: +46 (0)8-739 50 10.