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Sweden Aims to be Carbon Neutral by 2045; Largest Pension Fund Ditches Climate Bad Actors

In a stunning victory for clean energy and climate progress, Sweden this week overwhelmingly passed a law that fully commits the country to carbon neutrality by 2045. Meanwhile, Sweden’s largest pension fund has divested from corporations it identifies as violators of the Paris Climate Accord. As a wise person recently said (see featured comment below) — this is “what real climate leadership looks like.”

Beating a Fast Path to Net Zero Emissions

Sweden’s most recent climate law, which flew through the Parliament by a 254 to 41 margin, aims to have the country producing net zero carbon emissions in less than three decades. This new measure moves the date for Sweden’s carbon neutrality forward by 5 years from 2050 to 2045.

Already a climate leader, Sweden presently gets about 85 percent of its electricity from hydropower, wind and nuclear energy. Across all sectors of its economy, Sweden has achieved the goal of 50 percent renewable energy fully 8 years ahead of schedule. The new measure doubles down on this already-powerful trend by further trimming carbon-based electrical generation while shifting larger focus to carbon emissions cuts from the transportation sector.

(Swedish electrical generation is dominated by hydro, nuclear, and wind power. Sweden aims to remove fossil fuels from electrical power generation while shifting transportation to EVs and biofuels by 2045. Image source: Electricity Production in Sweden.)

In order to achieve carbon neutrality, Sweden is pushing hard for rapid electrical vehicle adoption, switching remaining liquid fuels to biofuels, and to completely phase out its ever-dwindling margin of fossil fuel power generation. The result of these policies would be a country that primarily runs on renewable and nuclear power generation and that uses EVs and other alternative fuel vehicles for motorized transportation. Ultimately, Sweden aims to cut its presently low carbon emissions by a further 85 percent all while planting trees and developing carbon sinks to offset the rest by 2045.

Divesting From Climate Bad Actors

In a related move, Sweden’s largest pension fund, which manages the pensions of 3.5 million Swedish citizens, decided to divest money from various climate bad actors. The fund, AP 7, announced last week that it would pull investments from six corporations that it identified as being engaged in various violations of the Paris Climate Summit. These companies included: ExxonMobil, Westar, Southern Corp, and Entergy for fighting against climate legislation in the United States, Gazprom for oil exploration in the vulnerable Arctic, and TransCanada for building pipelines across North America despite widespread local opposition and obvious long-term climate impacts.

(AP 7’s divestment from climate bad actors is a major win for climate action advocacy groups like 350.org which nobly aim to leverage mass social, political and protest action to help spur a transition to 100 percent renewable energy in an effort to prevent serious global harm from climate change. Image source: 350.org.)

These moves were praised by climate action advocacy group 350.org’s Jamie Henn, Strategic Communications Director for the global grassroots climate movement, who stated:

“Sweden divesting its largest pension from Exxon proves you can’t claim to support climate action while funding and perpetuating climate change. Exxon knew about climate change half a century ago, and continues to sow doubt and bankroll climate deniers. With its core business model dependent on exploiting people and planet for profit, Exxon is in direct violation of the Paris agreement.”

Responsible Climate Action by Sweden

Sweden’s latest moves cast light on various agencies who have done so much to slow the pace of a much-needed response to climate change and a related energy transition while putting serious legislative muscle behind carbon emissions reductions. It’s a major win for the divestment and climate action movements — further calling into doubt the viability of a number of businesses who’ve predicated their future profitability on wholesale global harm. Sweden, by both moving forward its date for carbon neutrality and by moving large pension funds away from direct capital support of the fossil fuel industry continues to set an example for all by vividly underlining how decisively the rest of the world needs to act to catch up.

Links:

Sweden Commits to Becoming Carbon Neutral by 2045 With New Law

Sweden’s Largest Pension Divests From Paris Accord Violators Including ExxonMobil and TransCanada

Electricity Production in Sweden

350.org (Please Support)

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