Vattenfall suggests Model for Global Climate Measures

At the World Economic Forum (WEF) in Davos, Vattenfall’s CEO Lars G Josefsson today outlined an adaptive burden-sharing model for action against climate change.

Mr Josefsson considers climate change the “overriding environmental challenge of our times”. In a WEF session he said: “Economy, energy and the environment are closely interlinked, so we have to realize that we are implementing a major shift in the world economy. Combating climate change must and will become part of everyday life all over the globe.” Mr Josefsson believes that the business community’s reluctance to take a clear stance on climate change was a strategic mistake: “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.” Vattenfall’s model is meant to present a “third way” combining cap and trade mechanisms with initiatives on accelerating technological development. Vattenfall's model is based on the principle that all countries should participate in reducing carbon dioxide emissions. Emission allowances will then be allocated to each country in relation to its share of global GDP. Emission caps should be binding. The model has the intention to create a level playing field and to avoid an extra cost burden on the poorest countries. Thereby no poor country shall be denied its right to economic development while no rich country shall have to go through disruptive change. However, richer countries pull a larger weight. 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 In a further session today (Thurday, January 26) Mr Josefsson will be appointed Community Leader for Energy Governors in the World Economic Forum until the next Davos meeting in January 2007. For further information, please contact: Arne Mogren, Head of Public Affairs, telephone: +46-(0)8-739 52 34. Martin May, Head of Group Media Relations, telephone: +46-(0)8-739 52 70. From Vattenfall's Press Office, telephone: +46 (0)8 739 50 10.