Norway 2022

Energy Policy Review of Norway 2022

Overview

The International Energy Agency (IEA) conducts in-depth peer reviews of energy policies among its member countries. Since 1976, these reviews have supported energy policy development and facilitated the exchange of international best practices. Norway has remained a global pillar of energy security, providing stable supplies of oil and gas in an environmentally responsible manner. Approximately 90% of its energy production is exported due to its abundant reserves.

Climate Change Policies

Norway has updated its ambitious climate targets, aiming to reduce greenhouse gas emissions by 90-95% from 1990 levels by 2050, excluding carbon sinks. The robust carbon pricing system serves as a solid foundation for achieving these goals. However, substantial work remains, particularly in complex areas like transport and industry.

Energy Efficiency

Norway has made significant strides in energy efficiency, with zero-emission electricity generation from hydropower and substantial electrification in the buildings and industry sectors. Many easy wins have already been achieved, but more complex challenges lie ahead.

Electricity in the Energy Transition

Norway's electricity system based on renewables can support sectoral transitions through detailed, long-term roadmaps backed by specific policy measures. The country is already a leader in carbon capture, with the Longship project further advancing this technology.

Oil and Gas Sector

Despite the challenges, Norway has advanced efforts to reduce greenhouse gas emissions from oil and gas production, particularly through electrification of offshore platforms. The government has taken steps to augment near-term oil and gas production in response to the Russian invasion of Ukraine.

Energy Research and Innovation

Norway's existing expertise in energy research and innovation positions it well to lead in decarbonizing various sectors through technologies like electric vehicles, carbon capture, utilization, and storage, and hydrogen.

Recommendations

Key recommendations include:

1. Climate Change Policies: Implement comprehensive measures to reduce emissions, particularly in hard-to-abate sectors like transport and industry.
2. Energy Efficiency: Continue to electrify buildings and industry sectors and develop detailed, long-term roadmaps for sectoral transitions.
3. Renewable Energy: Accelerate the deployment of renewable energy technologies, focusing on wind and solar power.
4. Energy Research and Innovation: Strengthen research and innovation efforts to develop and deploy new technologies.

Overall, Norway has the potential to showcase effective strategies for a successful energy and climate transition, benefiting both domestic and international efforts.