12 climate actions that should be included in a climate agreement

This post is a shorter version of the Langsikt policy note “New climate vision for the Støre government” released 02/27/25.

It's funny that no parties have yet picked up the power inherent in Støre's initiative, which came almost immediately after the Centre Party's exit from government. Both the right and the left have a vested interest in putting in place a broad climate settlement to make this autumn's government negotiations easier.

It feels urgent that Norway's first climate settlement in 13 years is due to be landed within a few scarce weeks after Easter. But the scarcity of time does not mean that climate settlement needs to be weak and measure-poor.

The think-tank Long Term has recently launched the memo “New climate vision for the Støre government” with 12 concrete measures that should be included in the spring climate agreement. It is by no means an exhaustive list of measures, but rather mechanisms and cost-effective measures that are too rarely raised in the climate debate.

1. More foreign cables — fast

Germany's (by all accounts) new Chancellor Friedrich Merz has pledged to build 50 new gas power plants “as fast as possible”. Britain, for its part, has had to invest billions of pounds in new gas power stations, even though the country wants to get rid of fossil energy use. Selling Norwegian power to the continent to avoid investments in fossil energy production would be a major climate contribution. In the meantime, Norway would have made money on it. Unfortunately, the government has put on the brake for new concessions for interstate connections, but it's not too late to turn around.

2. Send Støre to Brussels — green exports should count as climate cuts

In order to speed up new inter-country connections and power development in Norway, Støre should travel to Brussels in an attempt to negotiate a new “super deal” for Norway. Europe is in dire need of more controllable power in the ongoing energy transition. If, as we recommend, Norway commits to a two-pronged climate target, Støre should negotiate an agreement that approves large-scale power exports as emissions cuts within the quota system.

3. Buy and delete climate allowances

The price of emitting one tonne of CO₂ within the EU quota system is lower than the cost of action for a good deal of climate action in Norway. While Norway should and must reduce its own emissions, buying and deleting climate allowances can also be a cost-effective way to meet our European commitments. Unlike a number of other climate measures, such as electrification of the Norwegian continental shelf, there will be no risk of this being matched by increased emissions elsewhere. By buying and erasing climate quotas, Norway can help tighten the EU's quota market, raising the price of emissions and providing stronger incentives for green transition across Europe.

4. CO₂ tax for agriculture

Agriculture is currently exempt from CO₂ tax, despite the fact that it is one of the sectors in which we must cut the most to reach our national climate targets. This exemption must be removed, but in a fair way where tax revenues are redirected to the sector to support the transition to more climate-friendly food production. The production subsidy for red meat should be removed, or at least sharply reduced.

5. Climate contributions from the petroleum industry

The oil and gas industry has a high payment capacity, accounts for a significant part of Norway's emissions, but in practice has had a low carbon cost compared to production value. The CO₂ tax on the shelf must be increased, and be independent of the quota price in the EU. Proceeds should go to climate finance in developing countries, so that Norway takes responsibility for its historical emissions.

6. Establish an independent climate council

Denmark and the UK have had great success with independent climate councils that provide professional assessments of whether policy measures are actually working. Such a council in Norway could ensure more binding policies and increase confidence in the climate targets. It is a problem that academic authorities in the field of climate are too heavily tied to government on the one hand, or political interests on the other. A professional climate council should act as a “critical friend” for politicians, providing both rice and praise where needed.

7. Strengthen and clarify the climate target

Norway currently has a target of 55 percent emissions cuts by 2030 and 90-95 percent by 2050, but we are far behind. The government has submitted for consultation a proposal to cut somewhere between 55 to 80 per cent by 2035, and the proposal has rightly received criticism for opening up a less ambitious climate target than the current one. The Environment Agency proposes that the 2035 target be at a 60 per cent cut nationally by 2035 and 80 per cent including contributions within the EU. This combines the best of domestic commitments and flexibility of the EU system.

8. Increase climate requirements in the CO₂ compensation scheme

Norwegian industrial enterprises receive support from the state to compensate for CO₂ costs, and as of last year the aid is accompanied by a requirement to invest in emission cuts or energy savings. But the climate requirement of 40 percent is too low. Few Norwegian companies have operations that are compatible with the goals of the Paris Agreement, and too little investment is made in cleaning and energy-efficient technologies. The climate requirement in the compensation scheme should be increased as part of the climate settlement.

9. New CO2 tax escalation plan

The carbon price needs to be increased more quickly to ensure adequate emissions cuts, and the escalation plan needs to stretch further in time. The plan is to step up CO_{! 2}tax to 2000 kr/tonne in 2030 (2020 kroner), but it is less than what is needed to trigger a series of necessary emissions cuts. Both the harmful effects of CO_{! 2} and the route to achieving the goals of the Paris Agreement dictates that the price must be higher than that. It is also important that a new escalation plan is adopted, extending towards 2050. The industry does not seem to believe that the price of pollution is actually going to increase drastically in the future, so Parliament should rectify that uncertainty by committing to increases far in time.

10. Extend the climate agreement with the EU

Norway has committed to the EU's climate regulations until 2030, but there is uncertainty as to whether we will continue the agreement. Strong cooperation with Europe provides predictability for business and ensures that we contribute to common climate goals. There is no reason to wait to commit, creating uncertainty as to which regulations the Norwegian state and our industry should adhere to.

11. More frequent emission figures

Official emissions figures currently come many months in arrears, which could weaken the link between action and effect. Governments should publish climate statistics at least twice a year, and in the long term every quarter. In connection with the state budget, forecasts for emissions throughout the year should be put forward, and the government's climate status and plan should be updated after budget conciliation and other agreements at the Parliament.

12. Scaling up the Renewable Energy Guarantee Scheme

Norway's state guarantee scheme for renewable projects can provide large global emissions cuts, but it is currently too small and too narrow, tying up unnecessary funds from the aid budget. Experience from Sweden and Denmark shows that such guarantees can mobilize large sums of private capital without the state taking significant losses, and at the same time multiply the effect of every penny spent.

Therefore, the scheme should receive a broader mandate (for example also in the field of sustainable agriculture), an increased guarantee ceiling (from NOK 5 to at least NOK 20 billion) and an accounting that does not reduce other aid. Then Norway can accelerate important climate action in developing countries and emerging economies — and with little or no net burden on Norwegian taxpayers.

The government has ample opportunities this spring to put in place measures that can actually ensure that Norway reaches its climate goals. But the responsibility does not rest solely on Støre -- the parties at the Storting must also seize the chance to advance proposals that can muster a majority. If we allow this moment to pass without action, we risk losing an important time in the decisive decade for the planet's climate.

‍