In the shadow of the state budget (“yellow book”) this week, the Støre government presented a climate status (“green book”) in which they see the consequences of adopted policies. Under the chapter dealing with the petroleum sector, the government writes that emissions on the continental shelf are likely to be “about 35 percent lower” in 2030 than in 2005. The government further claims that “several factors can contribute to emissions not being reduced as much as these overestimated”. In June 2020, the Storting decided that the oil and gas industry must reduce emissions by 50 percent by 2030. The goal was part of the controversial oil tax package, where the industry received handshakes from the state in exchange for a more aggressive climate commitment. This figure shows that the oil and gas industry is likely to reduce emissions by 50 per cent only by 2034. Graphic: Ministry of Climate and the Environment In the Storting and among environmental organisations, the “admission” is met with disappointment and anger. – It is abundantly clear that the oil sector is not on track to meet the cut targets, says Truls Gulowsen, who is the leader of the Nature Conservation Association. See below for more reactions. – It is completely unacceptable Ola Elvestuen, Liberal Party – It is completely unacceptable that the government does not follow through on the Storting’s decision on a 50 percent cut by 2030. It was a decisive part of the negotiations on the very favorable “oil tax package” that was adopted in the spring of 2020. Lars Haltbrekken , SV – Here it is revealed that greater measures must be implemented to reduce emissions. The oil company must be required to reach the target. They cannot get a very generous package and escape the climate obligations. Lan Marie Berg, MDG – I am incredibly disappointed. The government clearly says that they will not reach their own emissions target. Furthermore, it says a lot that the government uses the word “uncertain” 97 times in the document. Sigrun Aasland, Zero – In oil policy, the government never ceases to disappoint. They should remove the exempt income tax package and introduced conversion tax, which was part of the settlement with SV last year. Furthermore, there should be much stricter requirements for the oil companies to supply their own electrification with power, for example from offshore wind. Truls Gulowsen, Naturvernforbundet – It is abundantly clear that the oil sector is not on track to meet the cut targets, not even through massive planned electrification with power from shore, which now seems more and more unrealistic. We are disappointed that the government has not taken action in relation to this, but only put out talk without policy to ensure real cuts. We are crossing our fingers that SV manages to push the climate budget in line with the government’s own promise, which is to cut 3 million tonnes every year until 2030. – The cut target on the continental shelf is unrealistic and too ambitious At the Progress Party, the “capitulation” is met with a sort of “What did we say?”. The FRP said in March that the expectation of a 50 percent cut on the shelf was “much too hairy” and that “an orientation to reality” spoke for adjusting the target down to 40 percent. – We have long believed that the cut target on the shelf is unrealistic. Now the government clearly recognizes the same, says Marius Arion Nilsen, who is the FRP’s energy policy spokesperson. He adds that Norway is doing the world and itself a disservice if we put aside the vision of electrifying the continental shelf and instead achieve the same cuts with the help of quota purchases. The reasoning is based on the fact that the oil sector is covered by the quota system in the EU, and that Norwegian cuts are “zeroed out” of emissions on the continent. These are climate quotas A climate quota is a permit to release one tonne of CO2 into the atmosphere. The EU’s quota system, of which Norway is a part, is a political instrument established to reduce emissions of greenhouse gases. Quota trading is the buying and selling of emission quotas for carbon dioxide which contributes to global warming. These are traded on a separate exchange at current rates. The whole point of the climate quota system is that fewer quotas (emission rights) are distributed than the emission needs indicate. Both countries and companies receive a limited number of quotas. This helps to reduce emissions. Those whose emissions are too high must buy allowances. Those who manage to reduce their emissions have quotas for sale. For private individuals, it is voluntary to buy allowances, while some industries are required to buy and hand in allowances for their emissions. When you buy a quota, the Norwegian Climate and Pollution Directorate deletes the quota from the market. This means that companies that are subject to quotas will have fewer quotas to buy for their operations. (Source: Store norske lexikon, Climate and Pollution Directorate, Climate Lift) – Electrifying the shelf will tie up 10–15 terawatt hours in the next few years. This is valuable water power that we should rather set aside for Norwegian households and our business world, he says. Projections from the Norwegian Petroleum Directorate show that around half of Norwegian petroleum production will be driven by land-based power in the mid-2020s. The FRP stated in March that the Storting’s expectation of a 50 per cent cut on the shelf by 2030 (green dot) was “much too hairy”. Graphic: Ministry of Climate and the Environment In a forecast from the Norwegian Environment Agency, it is stated that the 50 target may be within reach “if all climate measures in the petroleum sector are carried out”. The projection contains a combination of enacted, planned and immature measures. Regarding the category “immature measures”, the Norwegian Environment Agency writes that these are solutions that have been tested offshore to a small extent and are therefore “associated with great uncertainty”. Norwegian oil and gas extraction currently accounts for more than a quarter (27 per cent) of Norwegian greenhouse gas emissions. Photo: Håkon Mosvold Larsen / NTB scanpix – The government must stop being so passive – Reducing emissions by 50 percent by 2030 is of course possible, but the government must stop being so passive. Without this cut, it will be impossible to cut 55 percent of greenhouse gas emissions in Norway by 2030, says Ola Elvestuen (V). He adds that “the government is wrong” when they write in the budget that carbon capture and storage from flue gas – as an alternative to power from land – cannot be used until after 2030. – This is a known technology that can and must be used in use earlier, he says. news wrote on Thursday that the government is also managing against excessive emissions in the non-quota-obligatory sector (transport, agriculture, construction and small industrial companies). The government states in the budget that it is working on measures to close the gap. Among other things, it will be more expensive to release greenhouse gases: the CO₂ tax will increase by 21 percent beyond the expected price increase, from NOK 766 to NOK 952 per tonne in 2023. Director for climate and environment in Offshore Norway, Benedicte Solaas, says the goal is to halve emissions is “demanding and expensive”, but affordable. Within a short time, four new platforms on the Utsira hill will be connected to national power. Photo: Offshore Norway The government will change the tax rules for the petroleum sector Director for climate and environment in Offshore Norway, Benedicte Solaas, tells news that the goal of halving emissions is “demanding and expensive”, but that two different status reports from KonKraft show that it can be affordable. – If we are to succeed, the industry is dependent on predictable framework conditions. And that planned power from onshore projects is not canceled or postponed. In the proposal for the state budget, the government plans to change the intermediate tax rules for the petroleum sector. The proposal means that the exempt income rate will be reduced from 17.69 per cent to 12.4 per cent. Terje Lien Aasland (Ap), Heikki Holmås (SV) and Jon Evang from the environmental foundation Zero celebrate the decision to electrify the Utsira hill with a cake in 2014. Photo: Marte Christensen / NTB scanpix Oil and Energy Minister Terje Aasland (Ap) says that the goal of to halve the emissions from petroleum production is fixed and that “the emissions are already low compared to other countries.” He adds: – As can be seen from the green paper, there is uncertainty around such estimates. One of the most important steps we can take is to electrify the shelf, something the government has been very clear about that we want – despite occasional protests from opposition parties with lower climate targets than us.
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Norway is behind schedule to halve emissions on the continental shelf – news Vestland
