Norway’s long-term climate targets (2017–ongoing)

Recognized by the Climate Change Performance Index 2023 as a “frontrunner” for climate action policy, Norway’s 2017 Climate Change Act provides the legal precedence for the country’s climate targets in line with the 2015 Paris Agreement. Complemented by the 2021 Climate Action Plan published by the Ministry of Climate and Government, Norway aims to be a carbon neutral society by 2030 and fulfill their emissions reduction targets as part of their contribution to reduce global greenhouse gas emissions to prevent the global temperature increase to 1.5°C.

After the international community renewed their climate policy mitigation commitments through the Paris Agreement in 2015, Norway established the Climate Change Act as part of their contributions to reduce emissions globally. The Act outlines Norway’s commitment towards “nationally determined contributions (NDCs),”¹ which set into place each country’s low-emission targets and the pathway they would take to achieve these targets. It also set in law an ambitious energy transition target to become a low-emission society by 2050.²

The Act was enacted on January 1, 2018 and was most recently updated in June 2021 to reflect adjusted targets, which currently are the following:

• By 2030, Norway will reduce greenhouse emissions by at least 50-55 percent compared to 1990 levels.
• By 2050, Norway will reduce greenhouse emissions by at least 90-95 percent compared to 1990 levels. 

The 2021 plan also highlights the need for Norway’s climate action to be in line with the United Nations Sustainable Development Goals (SDGs) and the European Green Deal, which emphasizes both reducing inequality (SDG10) and ensuring a just, inclusive, and fair green transition for Norwegian society (SDGs and European Green Deal).³ 

Implementation

Implementation of the Climate Change Act is managed by the Klima-og miljødepartementet, or the Royal Norwegian Ministry of Climate and Environment, which carries out all the environmental policies in Norway.

In 2021, the government of Norway released a comprehensive strategy for becoming a low-emission society, the Climate Action Plan for 2021–2023 white paper, which details the “action plan for transformation of Norwegian society as a whole by 2030,” which includes fulfilling climate targets and “creat[ing] green growth.” The plan also includes the key policy instruments necessary for execution (taxation, regulation, climate-related requirements in public procurement processes, and research/financial investments in innovation and technology).⁴Another notable and new target in the plan includes carbon neutrality by 2030, where Norwegian greenhouse gas emissions would be offset through a number of regional and international emissions trading schemes.⁵

Cost

Norway’s climate policies are primarily funded through two financial instruments: taxes and emissions trading. Norway has instituted a carbon tax since 1991 (learn more about the Carbon Tax policy here), and has been a member of the European Union Emissions Trading System since 2008, with both making significant contributions to their low-emission targets.

Tax revenue from carbon taxes is managed by Norway’s sovereign wealth fund, the Government Pension Fund Global, which is the world’s largest investment fund and has a focus on ESG (environmental, sustainable, and governance) issues.

Assessment

According to the 2024 Climate Change Performance Index (CCPI), Norway is ranked number twelve (falling from sixth place in 2022 and tenth in 2023), which looks at their overall climate policies. 

While the experts weighted Norway under “Very High” under the Index’s renewable energy indicators and “High” for Greenhouse Gas Emission key indicators, there are still key areas of improvement, primarily in energy use (given “Very Low”) and climate policy, (given “Low.”). Further, as one of the world’s largest oil and gas exporters, the CCPI experts highlight in their recommendations the need for a true end to fossil fuels in the country, and for policymakers to develop a phase out just transition plan. Their other key demands include:

• More coherence in transport policy, 
• Higher and more equitably distributed carbon taxes (as the current carbon pricing framework includes a tax break for the oil sector), and
• Plans for massively reducing consumption, and strategies to meet energy efficiency targets⁶

Additionally, the Climate Action Tracker gives Norway an “Almost sufficient” rating overall—the second highest category, assigned only to eight other countries (with no country achieving “Paris Agreement compatible”) and for their “policies and action against modeled domestic pathways.” The rationale for their rating notes that Norway’s current climate-related policies will not limit global warming to 1.5°C, nor will their emission levels reach the targeted goals unless they continue to improve and add new policy approaches to their matrix.⁷

Through these policies, Norway demonstrates its leadership in addressing climate change and for advocating for global climate action and equity. This commitment is further underscored by new initiatives, including ongoing support for climate adaptation (exceeding NOK 500 million [ USD 46.58 million] in new agreements); a pledge to triple climate funding by 2026; and a contribution of NOK 270 million [USD 25.16 million] for the loss and damage fund, as announced at COP28.⁸

Trolltunga, Troll’s tongue rock, Norway. ©Adobe Stock/javarman