– I thought for a while that at least the outboard motor and the binder were Norwegian inventions, but they are not, says Mogstad. Only 43 years old, Magne Mogstad is considered one of Norway’s most internationally recognized economists. He is a professor at the University of Chicago, where the economics department has fostered several Nobel Prize winners. Now he pours cold water into the blood of Norwegian politicians and businesses who believe that Norway can be an international spearhead in new and important technology that contributes to the green shift. – Norway is too small to be able to develop new technology that is important for the green shift, he says to news, and continues: – We have too little expertise and too small a professional environment for major technological innovations to happen here. They will take place in countries such as the USA and China, says Mogstad. The Minister of Industry: – At the top of the world In recent years, Norwegian politicians have been willing to sponsor the green shift with taxpayers’ money. Tens of billions will, among other things, help business to build offshore wind, get battery factories up and running and help industry to decarbonise via various aid schemes. By 17 June at the latest, the Støre government and SV promised NOK 35 billion for floating offshore wind. Business is asking for these billions because the investments are not profitable enough for private business to bear the entire risk. Norway undertook to cut emissions to avoid the worst consequences of climate change. The goal of the politicians is to create green industrial opportunities, but Mogstad has no faith in that. – No technology of great importance is going to be developed in Norway, he says. – Norway is a rich country that pollutes a lot, don’t we have an obligation to spend money on environmental innovations? – Yes, we can help finance them by supporting global research and development, Mogstad replies. Industry Minister Cecilie Myrseth completely disagrees with the criticism. DISAGREE: Norwegian companies are at the very top of the world in technology development, says Industry Minister Cecilie Myrseth. Photo: Erik Waagbø / news – We have a wonderful environment in Norway that is also good at technology, and we have a business community that is forward-leaning when it comes to the digital and green shift. Among other things, we have Kongsberg, which develops everything from the maritime sector to space, which is at the very top of the world, according to Myrseth. OPENING: Freyr battery factory opened the pilot factory in Mo i Rana in March last year. The project has received NOK 163 million in state aid, but it is completely uncertain whether there will ever be any battery production there. Photo: Marius Guttormsen – Absolutely crazy But Mogstad believes politicians can forget to pick winning industries. He is particularly critical of the state subsidizing individual industries such as battery factories. Battery factories were designated as one of the main investment areas in the government’s Green Industry Boost. A year ago, then Minister of Industry Jan Christian Vestre promised that the best battery projects would be allocated NOK 1 billion over the next five years. – If we play our cards right, Norway can become a major international player in battery production, Vestre said in 2022. – It is not the state that will pick winning industries. The idea that the minister of business should decide that batteries are something we should invest in and give extra support to it is completely crazy, says Magne Mogstad. EXPENSIVE: Offshore wind on the Norwegian continental shelf is expensive and yields low returns, according to Mogstad. Photo: Equinor Mogstad is also skeptical of the massive investment in offshore wind, which is going to be terribly expensive. The government has committed to subsidizing the first offshore wind development Sørlige Nordsjø II with NOK 23 billion. – If you commit to making the cuts at home, then offshore wind development with a low yield is one of the things we will do. But buying quotas abroad gives a much greater environmental effect per krone spent, according to Mogstad. Business Minister Cecilie Myrseth says the government stands for an active state in business policy. The authorities will continue to provide support to individual industries, and batteries are important for the green shift. Believing that the business sector is hoarding subsidies, Mogstad is also reaching out against the “hoarding mentality” in Norwegian business. What in English is called “rent-seeking”. – In the green shift, we will see more and more that companies align themselves with state support at the expense of value creation, says Mogstad. STRAWBERRY IN THE STATE TREASURY? NHO director Anniken Hauglie believes that NHO does not engage in collecting state subsidies. Photo: Moment Studio / Moment Studio He believes that by far the largest business organization NHO engages in recruitment. – It started during the corona period where they actively sought support from the state for their members. Now they will also have support for offshore wind and the green shift. It will be expensive for taxpayers, says Mogstad. NHO denies that they are looking for straws in the treasury and says they are working for good framework conditions for business, including tax. – But we are facing major changes in both climate and security policy. Here, there are investments that private individuals cannot make because it is not economically profitable, says deputy managing director Anniken Hauglie. Magne Mogstad fears that the green shift could be expensive and thus unpopular. He believes that the state’s green investment company Nysnø should be closed down because the return is negative. – Misuse of tax money, concludes Mogstad. Published 30.06.2024, at 15.22 Updated 30.06.2024, at 15.24
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