Dear colleagues, ministers, and friends.
I look forward to meet in Glasgow to demonstrate our joint commitments to keeping 1,5 alive. We are currently heading towards 2.7 degrees warming and the world’s aggregated NDCs puts us on track to a 16 % increase in global emissions. This is unacceptable.
We have all committed to honour the Paris Agreement and we know what has to be done. It is time to act. You can count on Sweden to do our part, but climate action requires collective action. I urge all countries, especially the G20, to come forward with commitments before COP26 that keeps 1.5 alive.
The outcome of COP26 must reflect this urgency of action. The recent and upcoming IPCC reports as well as the NDC synthesis report are key products that the world expects COP26 to act on.
Moreover, it is essential that the outcome of COP26 reflects developments in the real economy. We are seeing unprecedented and accelerated action that is transforming both industry and finance. For example, we have two Swedish companies aiming to put fossil free steel on the market by 2025. Our financial actors are aligning their portfolios with the Paris Agreement. This is happening now. New jobs. New economic opportunities. I urge us all to embrace the opportunities of climate action.
Transition in the industrial sector is crucial as industry accounts for roughly 30 percent of global carbon emissions. As mentioned, Swedish industry is rapidly transitioning to greener and cleaner methods of production.
The Swedish-Indian initiative and collaboration Leadership Group for Industry Transition (LeadIT) gathers countries and companies that are committed to action in alignment with the Paris agreement. Members of LeadIT subscribe to the notion that energy-intensive industries can and must progress on low-carbon pathways, aiming to achieve net-zero carbon emissions by 2050.
I also want to emphasize the importance of climate finance and specifically finance towards climate adaptation. Since the developing countries are the most vulnerable to climate change, Sweden together with the other wealthier nations have a responsibility to ensure that the USD 100 billion goal is reached on a yearly basis. We are now stepping up our game. Next year Sweden will increase our contribution towards the USD 100 billion goal with 13% (i.e. 1 billion SEK) compared to 2019 and doubling our contribution by 2025.
Furthermore, we need to urgently accelerate actions and set clear timelines to phase out coal power, coal-finance and the exploration and extraction of fossil fuels. Sweden is a frontrunner in sustainable export financing. No Swedish export financing for the extraction and exploration of fossil fuels will take place after 2022. In 2020, the Swedish Export Credit Agency ceased funding for the extraction and transport of coal.
We currently have a unique opportunity for a green recovery. We still have a fighting chance to keep the global temperature rise within 1.5 degrees. COP26 is probably our last window of opportunity to do so.
The world calls on us leaders to deliver, so let us answer to that call.