Business organisations of Finland, Sweden, Norway, Denmark and Iceland have expressed three expectations of the COP28 negotiations: to initiate global trading mechanisms, set a global carbon price and support the global energy pledge.
Nordic business supports the Paris accord and the EU 2030 climate targets. We support EU’s mandate and the ‘global energy pledge’ to triple global renewable capacity and double global energy efficiency rate. While we support Europe’s climate change leadership, climate change is a global challenge and global cooperation is vital to solve it. The EU is committed to 2050 climate neutrality and we urge the international community to follow suit with ambitious efforts to combat climate change. International cooperation will increase the speed and cost-efficiency of the green transition, which requires massive investments. Hence, a strong future-oriented and sufficiently ambitious agreement, with all countries in cooperation and trade, is crucial for further measures and our ability to fulfill them.
Keep ambition high
COP28 will conclude the first five-year cycle of the UN global stocktake. It is evident that we are not on track in keeping temperature rise well below 1.5 – 2.0°C of pre-industrial levels. The objective of the next cycle must be to keep the Paris ambition. The EU will present a 2040 climate target as an obligation under the Paris Agreement during 2025 with a 2035 milestone included. We support this endeavour and encourage the EU to maintain its climate leadership. However, we all need to implement concrete, transparent and reliable transformation measures to have any hope of achieving the Paris goal and keep 1.5 °C alive.
Set global CO2 price
Market based solutions are urgently needed to set a global CO2-price and to kick-start worldwide climate action. Europe established an Emission Trading System (EU ETS) in 2005 and more than 80 pct. of emissions will be covered by it in 2030. The system has proved to be a cost-effective mechanism to decarbonise industries. Hence, we urge that the COP28 climate agreement promotes market mechanisms, building on the promising and significant progress achieved in Katowice and in Glasgow. A simple, transparent, and legitimate market-based system must come in place as quickly as possible to kick-start market dynamics.
Decarbonise our economies with with technology deployment
Emissions should be gradually phased out or decarbonised globally. This can be done through reductions of emissions with measures such as energy efficiency, and deployment of alternatives to fossil energy such as scaling up renewable energy capacity, use of CCS, deploying hydrogen and power-to-x solutions. Other than reductions, we need avoidance and removals of carbon from the atmosphere, especially in the hard-to-abate sectors. All carbon removal technologies must be acknowledged and incentivised, including both natural and industrial carbon removals. Remaining and decreasing emissions, under the agreed target of well below 2 degrees, must be subject to trade on a global market and a global carbon price. It will enable flexibility and cost-efficiency, incentivize decarbonization by supporting stronger business models, and accelerate carbon management solutions and technology development. Models show that the world can meet targets at half the price, or remove twice as many emissions, with trade cooperation. 
Operationalise Article 6.4
Efforts should be placed on the operationalization of the central mechanism under Art. 6.4. Further guidance on corresponding adjustments, the administrative infrastructure of the market mechanism and the rules for the supervisory body will be important. Finally in place, it will instill confidence needed to agree on systems for reporting and verification, initiating global market dynamics.
The world will not manage the climate challenge without global cooperation. Even though Europe’s businesses relentlessly cut emissions, we need global trading mechanisms, a global carbon price and globally binding targets. Hence, Europe must push to get this in place in Dubai and, not least, promote trade by participation as we did in the past.
Nordic business wish negotiating parties’ success in this decisive work for humanity.