About
As a rich oil and gas exporting country, Norway aims to be a leading nation in environmental policy. 'Our goal is to be carbon neutral by 2030'.This means that the Norwegian Government will offset all greenhouse gas emissions through the purchase of emission allowances from other countries.
Norway is also aiming to strengthen its present Kyoto commitment by 10 percentage points. By 2020 we will cut global greenhouse gases by the equivalent of 30 per cent relative to the 1990 level. Approximately two thirds of these emissions reductions will be implemented nationally.
Norway is working towards a more comprehensive and ambitious climate agreement to follow on from the Kyoto Protocol after 2012. Half of the energy used in Norway is from renewables, and nearly all electricity is generated by hydropower. There is an energy-intensive industrial cluster based on hydropower that generates substantial process-related emissions.
The oil and gas industry is Norway’s largest, and is responsible for about one fourth of the country’s greenhouse gas emissions. Norway’s scattered settlement pattern gives rise to a relatively high demand for transport. Because of its relatively cold climate, there is a substantial need for energy to heat buildings.
In addition, the Norwegian economy is largely based on the extraction and export of raw materials, which generates a large volume of goods transport. Nevertheless, because of the amount of renewable energy used in Norway, per capita emissions of CO2 are lower than the OECD average.
Norway’s climate policy is based on the objectives of the Climate Convention and the Kyoto Protocol and the scientific understanding set out in the IPCC reports. Most sources of greenhouse gas emissions are currently regulated through economic measures such as taxes and emissions trading, which put a price on emissions. Norway has advocated cost-effectiveness across emission sources, sinks, sectors and greenhouse gases, both domestically and internationally.
A tax on CO2 was introduced in 1991 as the first measure designed specifically to curb emissions of greenhouse gases. Norway’semission trading scheme by and large covers the same sectors as the EU ETS. From 2008, the Norwegian emission trading scheme and the CO2 tax will cover about 70 per cent of Norwegian CO2 emissions. This is more than half of Norway’s total greenhouse gas emissions.
Furthermore, as a part of the EU internal market, Norway is to a large degree bound by the same EU environmental legislation as EU member states.
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Strategy
Norway has embarked on the ambitious journey to become carbon neutral. With a budget of 500 million euros in 2008, the Norwegian Government has positioned itself as one of the three largest buyers of carbon credits in the world. Norway’s purchase of carbon credits from Joint Implementation and the Clean Development Mechanism will supplement its domestic efforts to reduce greenhouse gas emissions. During 2008-2012 Norway has pledged to over-fulfill its Kyoto Protocol obligation
by 5 million tonnes. By 2020 Norway will make further reductions of 10 million tonnes per year, cutting emissions back 30 per cent or more compared to 1990, and finally, subject to an acceptable international agreement, become carbon neutral by 2030.
Norway has made significant contributions to develop the infrastructure of the international carbon credit market. Norway has entered this market as a major buyer of carbon credits and acts as a catalyst for further market development. Project developers are encouraged to join us in efforts to reduce global greenhouse gas emissions.
Norway – A Srtrong Development Partner
- Has a track record of more than 50 years of development cooperation, currently with an annual contribution of abut 1 per cent of Norway’s GNP.
- Offers the benefits of its AAA rating in the international capital markets. A solid buyer makes it easier to project owners to obtain full financing.
- Has contributed to the development of the carbon market from its very inception.
- Has a long term perspective and is prepared to discuss contacts for post 2012 delivery.
- Has a flexible approach to accommodate the special needs of newcomers to the market.
- Is interested in large and small projects within established and new project types.
- Is efficient and transparent in its transactions.
We encourage in particular project owners from countries where there is generally limited experience in JI/CDM projects to contact us. Norway will act as a catalyst for market development as it is prepared to enter into binding contracts at an early stage of the project cycle. This provides a foundation on
which project financing can be built.
Norway may provide financial support for newcomers to the market, enabling them to complete their product documentation in accordance with UN specifications.
Norway - A Strong Business Partner
Norway’s operations in the JI/CDM market are strictly commercial.
Norway’s purchase programme by far exceeds its need for compliance with the Kyoto Protocol. It therefore enjoys a unique degree of flexibility which enables it to make informed decisions involving higher implementation risks than are the norm in the market. It will do so with a special view to the needs of newcomers to the market.
In its investment portfolio, Norway intends to place a share in projects with high implementation risk. Acceptable risks include:
- long-term commitments made in early phases of the project cycle
- limited or lacking track records of counterparts
- host countries with limited or no CDM experience
- unproven methodologies
- willingness to discuss contracts on deliveries beyond 2012 Norway will offer a fair price to the suppliers considering the risk factors, which may otherwise prove an obstacle to market entrance.
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