Norway has Significant Opportunity to Accelerate its Transition and Contribute to Global Leadership in Clean Energy Technologies

Published on: 30 June 2022 06:45 PM
by KnowESG
Storvassdammen 3

According to a new IEA policy review, Norway can expedite emissions reductions in fuel production, transportation, and industry by using clean power and energy innovation.

As a resource-rich country at the forefront of many clean energy technologies, Norway is uniquely positioned for the clean energy transition, according to a new in-depth policy review by the International Energy Agency. However, to meet its ambitious climate goals, Norway must now advance strategies to combat emissions in sectors where they are most difficult to reduce.

Norway has remained a worldwide pillar of energy security since the IEA's last policy assessment in 2017 because of its abundant oil and gas reserves that are produced in an environmentally responsible manner. 

Norway is a significant and reliable worldwide supplier, exporting about 90 per cent of its energy output.

IEA Executive Director Fatih Birol, said: 

"I commend Norway’s efforts to boost its near-term oil and gas production in response to Russia’s invasion of Ukraine, helping to stabilise global supplies, especially to its European neighbours. At the same time, Norway is leading efforts to reduce greenhouse gas emissions from oil and gas production, especially through the electrification of offshore platforms.”

Norway has revised its already ambitious climate goals to decrease greenhouse gas emissions by 90-95 per cent by 2050, excluding carbon sinks. 

The nation's comprehensive carbon pricing system, under which 85 per cent of domestic emissions are covered by the European Union Emissions Trading System or subject to a carbon tax, provides a solid foundation for achieving this objective.

Nevertheless, the report concludes that Norway has a substantial amount of work to do to reach its lofty goals. Since the nation has largely electrified its energy consumption and has already reduced emissions from power generation to nearly zero thanks to abundant hydropower, many simple steps for lowering emissions have already been taken. 

The remaining reductions will be more complex, difficult, and expensive, particularly in the transportation and industrial sectors.

The report highlights that Norway's existing competence in the energy sector can aid in its energy and climate transition. It is well-positioned to decarbonise a wide range of sectors using technologies such as electric vehicles, hydrogen, and carbon capture, utilisation, and storage if the appropriate policies are implemented. 

Norway is already a leader in carbon capture, and its spectacular Longship project, which consists of two large-scale capture plants and one storage facility in the North Sea, will contribute to the global advancement of this technology.

The IEA research suggests that Norway exploit its renewables-based electrical grid and adopt sector-by-sector roadmaps supported by specific policy actions.

“I believe Norway has an important opportunity to show the world how to undertake complex emissions reductions, an issue all countries will need to face,” said Dr Birol. “I hope this report will help Norway navigate its path toward a low-emissions society and help lead the world on advancing low-carbon technologies.” 

Source: IEA

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