Speech Seminar on "Renewable Energy Technologies - Biogas has arrived" in Sacramento, USA 11 January 2007
Andreas Carlgren, Minister for the Environment

Statement by Minister for the Environment Andreas Carlgren at a seminar on renewable energy technologies

Ladies and gentlemen,

I am very pleased to be here today at this joint event for Sweden and California.

On Monday and Tuesday I had the opportunity to meet and discuss climate change and energy efficiency with a range of public representatives in Washington. Later today I will have a number of meetings with policymakers to discuss the same issues, but at a more practical and concrete level. And now I am meeting you, the companies that deliver the goods and services we need in order to turn organic waste - including waste from sewage treatment plants and households - into purified biogas that can be used as a renewable motor fuel.

It is very exiting to be here. California has been a world leader in the area of environmental legislation. You have established high goals and worked actively to reach them. And now you have set up ambitious target of cutting greenhouse gas emissions by 25 per cent by the year 2020. I am pleased to see that you are taking the lead here in the transition to a low carbon society, and a low carbon transportation sector.

I would like to take this opportunity to say a few words about the Swedish delegation that is accompanying me. The delegation contains a number of companies and businesses people, from both the private and local government sectors. They have long practical experience of working with biogas. In addition, the delegation also includes officials from the Swedish Energy Agency, the Swedish Environmental Protection Agency, the Swedish Trade Council and Swentec, the Swedish Environmental Technology Council. I have understood that the delegation has had meetings with a number of partners here in California and I hope that these have been mutually beneficial. I was also encouraged to hear that Scandinavian Biogas and Southern California Gas have signed a contract to explore biogas opportunities in California.

The Memorandum of Understanding

The Memorandum of Understanding between Sweden and California that was signed in June 2006 is the major reason for me being here. The document covers renewable fuels and energy, two crucial topics for the future. The MoU is an important foundation to build on. Its purpose is to build on each other's strengths in order to become more efficient and effective. The environmental challenges we now face must be used as an economic lever. Green technology will be in demand when energy and transport systems are being converted. The Swedish government gives high priority to developing our cooperation with California. A range of interesting opportunities for exchanges of technical concepts and knowledge are opening up.

The cooperation agreement provides good opportunities for Swedish environmental technology companies to enter the market in California. And of course also for Sweden to learn from the Californian experience. Swedish companies can have the opportunity to contribute their unique know-how and sell turnkey solutions, including technology and training in possible future biogas plants. California is the world's fifth largest economy and the world's sixth largest agricultural region. So it is of great importance.

We will open up the way to business opportunities by taking the lead in the transition. This will create new jobs and international projects and also promote sustainability.

Climate change

Climate change is the major environmental challenge of our time. It is the most prioritised environmental issue for me as Environment Minister and also for the Government as a whole. Climate change affects every part of society and every individual.

A lot has been done in Sweden. The oil crisis of the 1970's spurred a thorough political debate on energy policy. Energy efficiency, economic instruments, bio energy and district heating are important pieces in the jig-saw puzzle that have enabled us to reduce our emissions of green house gases.

Energy efficiency

Using energy more efficiently and in particular reducing dependency on oil is critical. Sweden has already accomplished a great deal. It has profound implications for sustainable urban development in the future. This can, for example, involve designing urban areas for less energy intensity, building and promoting highly efficient public transportation systems, and introducing innovations in housing development.

Economic instruments

Sweden has used economic instruments for decades - and in particular a carbon dioxide tax since 1991. Biofuels are exempt. The effect has been significant.

Bioenergy

In a country where 60 per cent of the territory is covered by forests biofuels is an obvious choice. This will also generate more jobs, especially in the north and in the rural areas.

District heating and cooling

50 per cent of the homes and premises in Sweden are heated by district heating. In the heating sector major advances have been achieved through efficiency gains by shifting to district heating. To a large extent this district heating is based on bio fuels or energy that otherwise would have gone to waste (for example energy from industries such as paper mills). District heating has also improved the air quality in our cities. Although Sweden is situated far north there is a growing demand for cooling for example in office spaces. In Stockholm an extensive district cooling system has been built utilising the cool water from the archipelago.

All in all the Swedish efforts to reduce greenhouse gas emissions has generated important results. Since 1990 our carbon dioxide/greenhouse gas emissions have decreased by 7 per cent. Meanwhile the Swedish economy has grown by more than 36 per cent. However, to reach the long-term targets we will have to do more.

To conclude: We wanted to get rid of the dangerous dependency on oil. And we gained through reduced emissions and increased economic growth. Through that we also have shown that it is possible to decouple economic growth from increases in emissions.

Transport sector and policies

The transport sector is Sweden's single largest source of greenhouse gases. And here emissions are still increasing. Action is necessary and new technologies are needed. Biogas from waste is one innovative and promising example. Upgraded biogas has the same advantages as natural gas for vehicles. It gives the least hazardous and contaminating emissions of all the alternative fuels. Moreover it is a carbon dioxide neutral fuel that can be manufactured from local waste streams, thereby also solving local waste problems.

Private business must play a major role in transforming the transportation sector. But this change cannot be achieved by business alone. Also governments have to facilitate the transition to a low carbon transportation system.

In Sweden a number of policies are being used. In order to promote the production of biogas from waste, as well as the use of biogas for cars, the Swedish Government has stimulated investments in renewable technologies. We support locally designed, innovative programmes.

The Swedish Government has also employed public procurement to increase the use of renewables in the transport sector. The requirement set up in 2006 is that 85 per cent of all cars purchased by central government should be environmentally friendly with the exception of emergency services vehicles.

In addition, Parliament has passed a Government Bill to increase public access to renewable fuels. Under the new legislation, all large petrol stations in Sweden must offer renewable motor fuels, such as biogas or ethanol.

Sweden's national policy on the promotion of biofuels also include tax relief on environment-friendly fuels and cars along with subsidies for the production of biofuels. Subsidies are also available for local incentives such as reduced parking fees and car parks dedicated exclusively to biofuel vehicles.

However, today's challenges represent tomorrow's opportunities - if we use them! Opportunities for new ways of thinking, or new and creative solutions and incentives as well as new technological solutions. The importance of finding new ways of thinking and new avenues for research has been described in a brilliant way by a researcher as: "A humming-bird can fly 600 miles with 2.5 grams of nectar as fuel. If research can solve that riddle, we may also have solved world energy problems."

New opportunities

Sweden has a long tradition of entrepreneurship and innovations - many of which have provided the basis for large, international companies. Innovators such as Alfred Nobel have laid the foundations for major industries. Entrepreneurs have played an important role in the development of Sweden's industry and economy, one example being Ingvar Kamprad, the founder of IKEA.

It seems to me that new Swedish entrepreneurs of the same kind may very well appear in the environmental technologies sector.

Environmental technologies a growth sector

The Swedish government sees environmental technologies as an important sector for economic development and growth. According to Statistics Sweden, the environment sector in our country has annual sales of approximately 35.3 billion US dollars and employs some 90 000 people. The Swedish Environmental Technology Council has a database comprising more than 1 600 companies that are working in the sector. Bear in mind that Sweden only has 9 million inhabitants. So it is reasonable to say that environmental technology is currently one of most important sectors in Sweden.

Today we are focusing our attention on biogas and its potential, but I would like to take the opportunity to say just a few words about the initiative that we are carrying out tomorrow in Los Angeles.

The focus will be on energy efficiency, another important aspect of the MoU. You will hear how Sweden has worked with energy efficiency programmes in commercial buildings and saved vast amounts of energy and money. You will also hear more about the Swedish Sustainable City partner concept - which is a holistic approach to sustainable urban development.

Finally let me emphasise that I'm pleased that the Memorandum of Understanding has generated business opportunities between Swedish and Californian companies. I believe that there are a range of interesting future opportunities for exchanges and cooperation between Sweden and California. We share the same view and about the same targets of cutting the emissions of greenhouse gases and striving to break the dependence on oil. I hope that more cooperation can evolve in the future.

Finally, let me also take this opportunity to thank all the organizers of this event.