Nordic action on Nordic action on climate change 3rd Edition

ISBN 978-92-893-4402-9 (PRINT) ISBN 978-92-893-4403-6 (PDF) http://dx.doi.org/10.6027/2015-793 ANP 2015:793

© Nordic Council of Ministers 2015 Layout: Erling Lynder Texts : Fran Weaver Cover photo: Anne Sofie Bender, Nikolaj Bock, Hugi Ólafsson, Sigurður Ólafsson and Miljöförvaltningen Malmö Print: Rosendahls-Schultz Grafisk Copies: 600

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This publication has been published with financial support by the Nordic Council of Ministers. However, the contents of this publication do not necessarily reflect the views, policies or recommendations of the Nordic Council of Ministers.

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Foreword 5

Progressive policies to combat climate change 6

DENMARK – World leader in wind power 10

FINLAND – Building a bioeconomy 12

GREENLAND, THE FAROE ISLANDS and arctic issues 14

ICELAND – Utilising rich reserves of 16

NORWAY – Committed to global action 18

SWEDEN – Investing in Climate Action and Jobs 20

Joint Nordic actions 22

Key Nordic organisations and initiatives 27

PHOTO: SIGNELEMENTS Nordic vital statistics

Nordic action on climate change climate on action Nordic Greenhouse gas Net GG Renewable emissions, emissions/ energy as %

Human Mt CO2e, excl. removals of total Population GDP per capita Development LULUCF 2012 from LULUCF, energy

2015 2014 Index 2014 (with 1990 figs.) Mt CO2e 2012 supply 2013 Denmark 5.7 million €45,600 0.90 51.6 (68.7) -0.8 27.2% Finland 5.5 million €37,400 0.88 61.0 (70.3) -25.9 36.8% Greenland 56,000 €32,3001 0.793 0.82 (0.7) 0.0 14.2% Iceland 329,000 €39,500 0.90 4.42 (3.5) +0.7 85.8%2 Norway 5.2 million €73,400 0.94 53.42 (50.4) -26.7 65.5% Sweden 9.7 million €44,300 0.90 57.6 (72.7) -35.4 52.1%

Mt CO2e = million tonnes CO2 equivalent LULUCF = Land use, land use change and forestry The 26 million inhabitants of the 1: 2013 2: 2011 3: 2010 Nordic region enjoy high living standards. Their governments are working concertedly to preserve and enhance Nordic economic well-being while radically reducing the region’s greenhouse gas emissions.

4 Foreword

The latest report of the UN Inter- objectives through integrated policies contributing to economic governmental Panel on Climate responses. A growing body of growth and job creation as well Change (IPCC) clearly shows evidence indicates that effective as environmental improvements. that to limit average global mitigation actions can also The successfully warming to below 2°C relative to improve economic performance, demonstrate how ambitious pre-industrial levels emissions spur investment, create jobs and climate change mitigation of greenhouse gases must be have positive impacts in other targets and policies can be substantially reduced over the areas such as health and energy combined with high levels of next few decades, and decline to security in all types of economies. human development. a level of near zero by the end of the century. This booklet presents actions We hope that our experiences taken by the Nordic countries to will encourage others to instigate The IPCC report also highlights speed the transition to a sustain- ambitious climate actions and opportunities to combine climate able low-carbon society. It shows realise opportunities to achieve change mitigation, adaptation how sustainable development green, climate-resilient growth and the pursuit of other societal is possible, with strong climate around the world.

Peer Stiansen Chair of the Nordic Working Group for Global Climate Negotiations (NOAK)

5 Progressive policies to combat climate change Nordic action on climate change climate on action Nordic The Nordic countries’ forward- Decoupling environmental pressures and economic growth looking climate and energy poli­ cies have been designed on the 1995=100 The Nordic Region basis that well-planned efforts 150 to reduce greenhouse gas emis- 140 sions can mitigate climate change 130 120 while also promoting sustainable + 45% economic growth and employment. 110 This decoupling of emissions from 100 90 economic growth has already – 17% begun in the Nordic region. Fossil 80 70 greenhouse gas emissions across the region were successfully 2011 2010 2012 1995 1997 2007 2002 2005 2003 1998 2001 1996 1999 2009 2004 2008 2006 reduced by 9% between 1990 and 2000 2011, while total Nordic GDP rose GDP Greenhouse gas emissions by 55% over the same period.

Energy efficiency – a hot These factors have long made The urgent need to reduce the issue in the cold north energy efficiency a crucial use of fossil fuels has com- and issue. When it comes to heating pounded efforts to improve the greenhouse gas emission rates Nordic homes, innovations energy efficiency of industrial per capita are relatively high by including low-energy con- processes, buildings and global standards in the Nordic struction and transportation. At the same region, due to factors including systems have cut annual carbon time all of the Nordic countries the long, cold winters, long dioxide emissions from house- run wide-ranging clean energy transportation distances in hold heating systems to just research programmes, and

sparsely populated regions, 0.2 tonnes of CO2 per capita, Nordic governments support high levels of material con- compared to an average of 0.8 industrial investments in sumption, and the prevalence tonnes for OECD Europe. energy-saving and low-carbon of energy-intensive industries. technologies.

6 Social acceptability for are well aware of the related are instead supported through green policies environmental issues, and mu- social welfare policies that en- In addition to mitigating cli- nicipalities are widely striving to able them to meet their heating mate change, promoting local promote green energy by setting needs, while preserving incen- renewable energy sources also their own targets and launching tives that encourage everyone enhances energy security and local initiatives. to use less energy. The use of reduces import dependency. fossil fuels such as heating oil Policies with such goals have The Nordic countries apply is declining, while biofuels, Nordic action on climate change climate on action Nordic gained widespread social few energy subsidies, even for heat pumps and other greener acceptance. Nordic citizens low-income households, who alternatives are on the rise.

Today a third of the energy used Making the most of renewable sources even when they are not the across the region is renewable, assets cheapest option in the short term. and half is fossil-carbon-free. The Nordic countries are variously The Nordic countries’ advanced Ambitious emission reduction tar- blessed with plentiful renewable cross-border electricity market faci­ gets have also been set for future energy resources including hydro- litates the greater use of renewable decades, with each country defin- power, wind power, geothermal energy, since fluctuations in produc- ing ambitious targets and visions energy and forest biomass. Each tion often even out between regions, for 2050 (see table, page 8). country is striving to make the and can be balanced by flexible most of the renewable resources production. The Nordic countries are already available locally. making good progress in the The Nordic countries have historical- transition towards a more sustain- In 2011 these energy sources ly pioneered energy and carbon tax- able low-carbon society. Many accounted for about 65% of the es, providing further incentives to successful Nordic climate policies region’s save energy and switch to renewable and practical projects could be and more than 30% of total ener- sources. Taxes on energy and fossil beneficially adapted for applica- gy consumption. This is largely fuels generally remain significantly tion in other regions, including due to the widespread use of hy- higher in the Nordic region than example actions highlighted in dropower in Norway and Sweden, elsewhere in Europe. this booklet. and the effective use of biomass in combined heat and power National targets for reducing The Nordic countries are also plants in Finland and Sweden. greenhouse gas emissions have working actively to foster an am- Meanwhile Denmark has the high- been defined across the region bitious, binding agreement under est share of wind power in the together with related action plans the UNFCCC, and to promote glob- world, and Iceland is blessed with and initiatives. Individual countries’ al action and increased coopera- abundant geothermal energy. emission reduction targets for 2020 tion through other international vary between 15% and 40% of 1990 climate policy forums. National policies have favoured benchmark figures. Each country the use of renewable energy has also mapped out far-sighted

7 policies designed to work towards residues have increasingly been expected to boom as other regions a shared Nordic vision for the used as an energy source in the seek ways to respond to the global decarbonisation of energy systems Nordic countries in recent times, climate challenge. by 2050. particularly in efficient combined heat and power systems. Biogas is The Nordic countries have resolved Progress towards these targets increasingly being produced from to promote the spread of climate- is carefully monitored at national agricultural residues and organic friendly best available techniques. level, and policies will be adjusted household waste, while wastes Their governments aim to support Nordic action on climate change climate on action Nordic and expanded as necessary to that cannot be recovered and recy- green technologies by encouraging keep on track. cled can today be safely incinerat- public sector purchasers to serve as ed to generate energy instead of role models and help to build markets In the transport sector national being dumped in landfill sites. by favouring low-carbon options in policies including tax frameworks areas such as transport, buildings aim to increase the use of renew- Green technology forerunners and catering. able energy and promote low Nordic national policies have emission vehicles. All the Nordic actively promoted R&D invest- The Nordic countries and their shared countries aim to increase the ments related to clean energy financing institutions like the Nordic market share of vehicle biofuels to sources and energy-saving Environment Finance Corporation 10% or more by 2020 in line with technologies. Building up local (NEFCO) and the Nordic Development EU targets. markets for green technologies Fund (NDF) are at the same time helps new businesses to create continuing to identify and support At the same time wastes and new, green jobs and build up climate-friendly renewable energy organic materials such as logging a base for exports that can be and energy-saving schemes in neigh- bouring European countries (NEFCO) Ambitious emission reduction targets and developing countries (NDF).

2020 2050 Ambitious Nordic aims 4 Denmark n.a. 100 % independent of fossil fuels The Nordic countries have worked 3 Finland n.a. 80% together for decades to make eco- 1 Iceland 15% 50–75% nomic growth and welfare improve- 1 1 Norway 30% 100% (net) ments compatible with ambitious 1,2 1 Sweden 40% 100% (net) environmental policies, while actively 1 = Offsets may be used to achieve targets contributing to environmental im- 2 = For sectors not covered by EU emissions trading provements in the Nordic Region and 3 = Finland participates in the EU ETS. The national target for sectors beyond. outside the ETS is for a 16% reduction from 2005. 4 = Denmark is expected to achieve a 37 % reduction by 2020. The Nordic Council of Ministers’ environmental action plan for The Nordic countries have set ambitious national targets for emission 2013–2018 aims to reduce green- reductions for 2020 and 2050 compared to 1990 benchmark figures. house gas emissions to help achieve the goal of restricting global warming

8 to an average of less than 2°C, and thus limiting the consequent Nordic electricity production 2011 environmental and socio­economic impacts.

The action plan emphasises the need to support innovative funding mechanisms such as the Green 85% 65% CO -free Renewable change climate on action Nordic Climate Fund, as well as market- 2 based mechanisms that can stimulate cost-effective emission reductions.

There have inevitably been fears hydro biofuels wind that such ambitious policies could geothermal waste nuclear lead to “carbon leakage” in the private sector, if industries chose coal & gas oil to shift location to countries with other less stringent climate and energy © NORDIC ENERGY RESEARCH 2012. SOURCE: IEA 2011 policies; but the continued strong economic performance of the Nordic countries suggests that their progressive policies have not harmed business or welfare. The Nordic countries have also re- ment with legally binding commit- solved to support the International ments for all countries, to come The Arctic region is particularly Maritime Organization’s efforts to into force in 2020. By pro-actively vulnerable to the impacts of reduce emissions from shipping. setting their own ambitious climate change. The joint Nordic targets the Nordics aim to both action plan prioritises the work of Within wider international forums fulfil their own international ob- the Arctic Council and the Barents the Nordic countries will continue ligations, and demonstrate how Council on climate change and its to work towards the finalisation in it is possible to reduce emissions effects on northern ecosystems. 2015 of a global climate agree- sustainably and cost-effectively.

Nordic forests as carbon Figures for the net impacts of is being utilised. This kind of sinks land use, land use change and carbon sequestration has Forests cover large areas of forestry (LULUCF) show that increased considerably over Northern Europe. The growing these factors result in negative the past 24 years, meaning forest biomass and forest soils greenhouse gas emissions in all that the Nordic region’s net constitute a vast carbon sink the Nordic countries except Ice- carbon emissions including that is important on a global land. This is primarily because LULUCF are now 25% lower scale. the region’s forests are growing than in 1990. more rapidly than their biomass 9 DENMARK – World leader in wind power Nordic action on climate change climate on action Nordic Denmark has cut its greenhouse capacity include energy taxes, gas emissions by more than 25% targeted subsidies, more improve- Danish lessons on energy since 1990, and expects to achieve ments in the electricity grid, and efficient buildings a 37% reduction by 2020. Thanks the wider use of biofuels, district Thanks to the imposition of to improved energy efficiency, heating and surplus heat from ever stricter energy efficiency 33% less energy was needed to industry. standards the energy demand produce each unit of Denmark’s of Denmark’s new buildings GDP in 2013 compared to 1990 – Looking beyond 2020 has dropped by 80% since while the figure for total energy Denmark’s long-term objective is the 1970s. Buildings’ life- consumption in 2014 was the to become independent of fossil time costs have also fallen, lowest for 32 years. In 2014 about fuels by 2050, when production since savings due to im- 47% of Denmark’s electricity came of renewable energy should equal proved energy performance from renewable sources, includ- total energy consumption. exceed the related invest- ing a world record of 39% from ment costs. Future require- wind power. By 2020 the share of The 2012 Energy Agreement obliges ments are announced well in renewables is expected to rise to all parties to the agreement to start advance to help the building 70%, with more than half of the setting up post-2020 initiatives by industry adapt. Key factors country’s electricity coming from 2018, with assistance from a new include thermal insulation, wind power. Energy Commission established by air-tightness, use of daylight, the Danish Government in 2015. optimisation of windows’ These achievements and expecta­ heat loss/gain, and the tions are based on initiatives The Climate Change Act enacted energy efficiency of heating, defined in Denmark’s ground- in June 2014 forms another key lighting and ventilation. breaking 2012 Energy Agreement. element in the strategic framework Planned investments in energy for Denmark’s climate and energy • Energy policy toolkits efficiency, renewable energy and policies. An independent Climate relating to the Danish the energy system mean that by Council has subsequently been energy model are available 2020 more than 35% of Denmark’s established, consisting of experts from the Danish Energy total energy consumption can be from key fields who will regularly Agency’s Energy Partner- expected to come from renewable recommend policy initiatives. ship Programme: sources. The Minister for Energy, Utilities www.ens.dk. and Climate will annually report Focus areas in addition to the on progress towards strategic further expansion of wind power emission reduction targets. 10 11 - - - - guarantee

independent market encourages

energiakadamiet.dk further heating conversions and a switch to electric cars and biofuel-powered The vehicles. academy is frequently visited energy and environmental by experts from around the world. • Samsø: grid interconnectors flexibility and security of sup well-functioning A “power ply. exchange” producers to adapt to fluctuat demand.ing An transmission system operator plays a vital role in the successful integration of wind power into the national energy system. fuelled by surplus straw, while other households increas are ingly using solar panels, heat pumps and wood pellet boilers. Samsø’s Energy Academy aims to the make island totally fos sil-fuel-free by following 2030, to reshape its energy supply system accordingly. Strong - - - -

since most homes are connect ed to district heating systems The island of Samsø, with its farming communityof about 4,000 inhabitants, has become a showcase for Danish efforts to switch to green energy using local resources. Community- owned wind turbines today produce more than enough electricity to meet the island ers’ annual needs. About 70% of the island’s heating needs are met by renewable sources, Samsø – an island showcase island – an Samsø for green energy schemes, and onshore develop ments benefit from assistance provided to local authorities by the Wind Secretariat. Turbine Since wind power is by nature variable, Denmark has needed must be streamlined. Regulations governing wind-friendly grid in vestments must effectively share costs between investors and consumers. Denmark has one-stop-shop a planning process for offshore - - - ore than 5,000 wind turbines cracy encountered by developers economic and social impacts. Transparent public consultation processes are vital. The bureau has learnt many valuable lessons. Turbines should always be sited with due regard to environmental, a return on investments. As a wind power pioneer Denmark for research and innovation, and economic incentives such as feed- in tariffs to guarantee developers deployment of wind power would power would wind deployment of not be possible without govern ment backing includingsupport shore wind power developments wind shore are expected to raise this share to 50% The by 2020. large-scale today account for over a third of Danish electricity consumption. Major ongoing offshore and on than of Danish 5% exports. M coastal waters. The wind power industry has become a major employer, accounting for more favourable conditions for utilising wind power, including frequent moderate winds and shallow Putting power wind at the electricity the of centre supply Denmark is blessed with

PHOTO: ANNE SOFIE BENDER/NORDEN.ORG FINLAND – Building a bioeconomy Nordic action on climate change climate on action Nordic In March 2015 Finland passed a almost a quarter of Finland’s total A national climate panel set up in new Climate Change Act to facil- energy use. 2011 supports policy-makers by itate systematic, cost-effective providing scientific expertise on measures designed to ensure that Finland’s forests also act as a climate change. The government by 2050 domestic greenhouse considerable carbon sink, since meanwhile provides wide-ranging gas emissions should be at least their total annual growth greatly support for Finland’s clean tech­ 80% lower than in 1990. This will exceeds total fellings. Over the nology sector. The Cleantech build on measures that have al- years 1990–2012 the annual net Finland network strives to promote ready enabled Finland to meet its sinks calculated for Finland’s land and export Finnish innovations in commitments by use, land use change and forestry key technical fields including ener- cutting emissions to below 1990 sector (LULUCF) amounted to gy efficiency and renewable energy. levels. A low carbon roadmap 20–60% of the country’s annual for 2050 has also been recently greenhouse gas emissions. Finland’s national Programme to produced. Promote Sustainable Consumption Ambitious but achievable and Production particularly focuses Over the same timescale a targets on innovative projects designed farsighted Bioeconomy Strate- Key goals and measures are set to reduce climate impacts in three gy aims to make Finland into a out in Finland’s national energy key sectors: housing, food and sustainable low carbon society and climate strategy, which was transportation. Finland has also based on the use of renewable updated in 2013. Targets for 2020 pioneered the systematic planning biomass. This strategy particular- include an increase in the share of of climate adaptation measures. ly focuses on Finland’s extensive renewable energy sources to 38% A groundbreaking national forests, and the great potential of total energy use, and a rise in stra­­te­gy was first adopted in for technological innovations the share of transport biofuels 2005, assessing challenges and related to bioenergy and wood- to 20% - double the EU target. allo­cating responsibility for antici­ based materials. To reach these goals, the use of patory measures in key sectors. forest chips made from logging On the basis of evaluations and Wood-based fuels, which are residues in multi-fuel boilers progress reports the strategy has widely used in the forest in- instead of fossil fuels will be now been reshaped into Finland’s dustries and for combined heat further expanded, while Finnish National Climate Change Adapta- and power and district heating companies are rapidly developing tion Plan 2022. schemes, already account for second generation biofuels.

12 PHOTO: SIGNELEMENTS

Pioneering Finnish scheme in 2008. Several have The HINKU scheme is based on municipalities already achieved impressive the idea that emission-saving Twenty-six Finnish municipa­ reductions of 20–30% or more investments invariably lead to lities and their local private thanks to improvements in sec- cost savings in the longer term, sector partners are working tors including energy production, and that local businesses that collaboratively to create local energy efficien­cy in buildings, pioneer such developments put solutions that will make them waste management, transport themselves in a good position to forerunners in reducing green- and agriculture. exploit growing future markets. house gas emissions ahead of scheduled commitments. One imaginative collaborative • Carbon Neutral Municipalities project in the town of Uusikau- Project: The towns participating in the punki combines waste-to-energy, http://www.hinku-foorumi.fi/ Carbon Neutral Municipalities greenhouse cultivation, fish en-US Project (HINKU) are committed farming and the production of to cut emissions by 80% of biodiesel in a closed system 2007-levels by 2030. The that effectively recycles wastes, first municipalities joined the energy and nutrients.

Energy-smart built targets three years ahead of Planners are meanwhile shap- environments schedule. ing Finland’s built-up areas to The built environment accounts encourage residents to abandon for 42% of Finland’s energy Both new-build and renovation private cars in favour of public use and 38% of schemes increasingly focus on transport, cycling and walking. emissions. The ERA17 for an En- reducing heating needs, steered ERA17’s ultimate goal is that ergy-Smart Built Environment by tough building regulations in 2050 Finland will be able 2017 programme, a public-pri- and energy certification rules. to offer the world’s best living vate partnership launched More buildings and local facilities and operating environment for in 2010, will systematically will soon themselves generate people and businesses. enhance the energy efficiency more of the energy they need of buildings and built-up areas using distributed forms of energy • www.era17.fi – aiming to mark the centenary production like solar panels, wind of Finland’s independence turbines and small-scale bio- by meeting related EU 2020 mass-fuelled heating systems. 13 GREENLAND, THE FAROE ISLANDS and arctic issues Nordic action on climate change climate on action Nordic Climate change is naturally a awareness of the links between in tunnels in the permafrost. Its major concern for Greenland’s climate change and turbines, driven by water from two 56,000 inhabitants, since 85% of use. The Climate Greenland web- natural lakes, generate electricity their country is covered by a vast site (www.climategreenland.gl) for the town of Ilulissat 50 km ice cap. The impacts of climate provides a wealth of information away. change are already visible here in on climate impacts, mitigation ac- receding glaciers and flotillas of tions and research in Greenlandic, Ongoing hydrological surveys aim icebergs. Danish and English. to find ways to increase the capac- ity of existing hydropower plants. Greenland’s towns and villages Groundbreaking hydropower Greenland also aims to exploit are scattered along the coasts, expansion untapped hydro potential to at- connected only by air or sea, Through an initiative designed to tract energy-intensive industries with no national electricity grid. reduce dependency on imported and boost economic development Though levels of economic devel- fossil fuels, governments since while minimising emissions. opment are low by Nordic stand- the early 1990s have invested ards, energy consumption levels about 1% of Greenland’s GDP At the same time Greenland is and greenhouse gas emissions annually to expand hydropower assessing the potential for other per capita are high, not least due production. Hydroelectricity today renewable energy sources such to the great need for heating, provides 70% of Greenland’s elec- as solar power, micro-hydropower which has largely been met using tricity and is also used in several and wind turbines, especially in oil and gas. district heating schemes. isolated settlements.

In 2013 Greenland’s autonomous Greenland’s newest hydro plant, government launched an exten- at Paakitsoq, has been a literally sive campaign to raise public groundbreaking scheme, built

Shaping electricity use across Greenland is now moni- tional energy usage patterns, through smart metering tored by some 43,000 meters. to help energy-users cut their Greenland has set up the first consumption and costs. The sys- remote smart metering system Bills produced through the ra- tem also provides detailed data to cover an entire country. The dio-based system by the national that can be used to plan emis- consumption of electricity, water energy company Nukissiorfiit give sion-reducing improvements in and heat in residential, commer- consumers clear and detailed in- Greenland’s energy supply. 14 cial and administrative buildings formation spotlighting any excep- PHOTO: NIKOLAJ BOCK/NORDEN.ORG

Renewable options for the and wind power – though the Investments have been made Faroes Faroes’ 50,000 residents are still to increase the share of wind The Faroe Islands’ Climate quite dependent on imported oil power from 5% of total elec- Policy, defined in 2009, aims to for heating and transport. tricity use to 24% over the next reduce domestic emissions of year. Hydro-pumping energy greenhouse gases by at least The government is now promot- storage schemes are planned, 20% of 2005-benchmark levels ing electricity instead of oil for and power suppliers are also over the period 2010-2020; and heating and road vehicles, and seeking sustainable ways to progress towards this target striving to further increase the obtain renewable tidal energy is on track. Some 45% of the share of renewable electricity from the powerful currents that islands’ electricity already production by obtaining more flow around the islands. comes from renewable energy energy from reliable maritime sources – mainly hydropower winds and the surrounding ocean.

Nordic-Arctic cooperation in circumpolar and regional impacts threaten both the tradi- The Nordic countries’ territories organisations including the Arctic tional lifestyles of Arctic indige- encompass extensive Arctic Council and the Barents Euro-Arc- nous peoples, and the region’s lands and waters, including tic Council. fragile biodiversity. Climate the islands of Greenland and issues are also a key theme in the Svalbard. To address issues of The impacts of climate change are Nordic Council of Ministers’ own wider arctic interest the Nordic a key issue throughout such co- programme of Arctic cooperation countries are actively involved operation, especially since these and research initiatives.

15 ICELAND – Utilising rich reserves of renewable energy Nordic action on climate change climate on action Nordic Iceland’s greenhouse gas emis- increasing carbon sequestration emissions trading system has sions profile is exceptional by from the atmosphere through land been integrated into Icelandic international standards. Energy use changes, fostering research legislation. Fossil fuels have been consumption levels per capita and innovation, and preparing for subjected to carbon taxes since are the highest of all the OECD adaptation to climate change. 2010, and road vehicle taxes are countries, largely due to the based on emission levels. These prevalence of power-intensive Key strategic actions measures together mean that 90%

industries, but renewable geother- The strategy aims to reduce net of Iceland’s CO2 emissions are con- mal heat and hydropower together emissions of greenhouse gases trolled by economic instruments. accounted in 2012 for 86% of total by 50–75% from 1990-levels by energy consumption and 96% of 2050. Though total emissions The action plan also aims to electricity production. have been declining since 2008 reduce emissions from transporta- this is a challenging target, since tion by obliging national and local Oil is no longer used for heating, emissions in 2011 were 25.8% authorities to procure low-emis- and renewable energy has widely above 1990-levels, largely due to sion vehicles, and by encouraging replaced fossil fuels in industry. the expansion of metal produc- Icelanders to abandon their cars The production of aluminium and tion. Industrial processes includ- and use public transport, cycle other metals accounts for 77% of ing metal production accounted or walk to work or school. The total electricity consumption. Fos- for about 41% of Iceland’s Reykjavik the bike city programme sil fuel consumption rates outside emissions in 2011, since such aims to increase the total length of the transport sector are very low. processes generate greenhouse bike paths in the city from 10 km in In 2011 Iceland’s fishing fleet -ac gases even if they use renewable 2010 to 100 km in 2020. counted for about a quarter of total electricity. oil consumption, road transport for Fishing and afforestation 44%, and aviation for more than a The national Climate Change Emissions from Iceland’s key fish- fifth. Action Plan, approved in 2010, ing industry have been declining defines mitigation actions to for more than a decade largely The government’s long-term be realised in all sectors of the due to continuous improvements Climate Change Strategy defines national economy, overseen by a in fuel efficiency. The action plan five key goals with respect to cli- government climate committee. now aims to promote the use of mate change, relating to meeting biofuels in the fishing fleet, and to Iceland’s international obliga­- Iceland is not a member of the electrify the fishmeal processing tions, reducing fossil fuel use, , but the EU industry.

16 PHOTO: HUGI ÓLAFSSON

In the land-use, land-use change revegetation schemes includ- country. Such measures should and forestry (LULUCF) sector, ing extensive 40-year regional considerably increase Iceland’s Iceland aims to establish signifi- afforestation plans to be realised net LULUCF carbon removals over cant carbon sinks through major in low-lying areas around the the coming years.

Heat from the ground Government agencies including The national Climate Change Iceland has uniquely extensive the National Energy Authority have Strategy aims to continue to and accessible reserves of actively fostered related research promote both further innovation geothermal energy in the form and technological developments. and the export of Icelandic of underground reservoirs of expertise to countries with hot water and steam, due to Around 90% of homes are today relatively untapped reserves constant volcanic activity along heated geothermally, as well as of geothermal energy. The UN the Mid-Atlantic Ridge, which many greenhouse cultivation University Geothermal Training runs across the country from the facilities, fish farms and public Programme in Iceland has south-west to the north-east. swimming pools. In recent years provided valuable technical the amounts of electricity generat- training for many specialists Iceland has long pioneered the ed using geothermal energy have from developing and use of geothermal energy for risen to about 25% of Iceland’s transitional countries. local and district heating. total electricity supply.

17 NORWAY – Committed to global action Nordic action on climate change climate on action Nordic Norway is committed to become Since 2007 Norway has exten- best potential for wind power in carbon neutral by 2050 by becom- sively supported investments Europe, so there is scope for sub- ing a low-emission society and in energy infrastructure and stantial expansions in capacity by financing emission reductions production capacity in Africa and from the 2014 level of more than abroad that are equivalent to Nor- in Asia, while also helping to build 800 MW. way’s own remaining emissions. up technical expertise in recipient Key interim targets are to reduce countries. Norway’s advanced environmen- global greenhouse gas emissions tal and energy taxation system by an amount equal to 30% of Limiting domestic emissions includes taxes on mineral oil, Norway’s 1990 emissions by Domestic greenhouse gas emis- oil-based vehicle fuels and the 2020, and at least 40% by 2030. sions from the use of fossil fuels petrochemical industry. Carbon are fairly low by western stand- taxes have been imposed since This will be achieved by combin- ards, since almost all of Norway’s 1991. Emissions from Norway’s ing domestic reductions with the electricity is generated using hy- extensive offshore oil and gas financing of emission cuts abroad dropower. The energy supply only industry are included in the EU in collaboration with the EU and accounted for about 3% of nation- ETS to encourage the industry through the Kyoto Protocol’s al greenhouse gas emissions in to limit emissions. A Green Tax flexible mechanisms. If other 2013, compared to 27% for the oil Commission is currently exam- developed countries also commit and gas extraction industry, 22% ining further ways to encourage to an ambitious global climate for manufacturing and mining, emission reductions. agreement, Norway has promised and 19% for road traffic. to go carbon neutral by 2030. Though not a member of the Euro- In September 2014 Norway re- pean Union, Norway is a member inforced commitments to inter- of the EU Emission Trading System national actions including the (ETS), and is also committed to Green Climate Fund and the World meet the EU’s 2020 targets on Bank’s carbon pricing initiative, renewable energy. This will mean as well as global efforts to combat further increasing the share of re- deforestation, which Norway newables to 67.5% of total energy funds through a uniquely exten- consumption, from about 64.5% sive climate and forest initiative. in 2012. Norway has some of the

18 PHOTO: SIGURÐUR ÓLAFSSON/NORDEN.ORG

Electric cars appearing on the An impressive publicly funded Norway’s successes in intro- roads network of more than 1,000 re- ducing electric vehicles indicate To reduce emissions in the trans- charging stations has already been that if government backing port sector Norway has been built up. The scheme benefits from and purposeful policies make actively promoting zero emission Norway’s relatively inexpensive re- them competitive to purchase cars. Some 65,000–70,000 elec- newably generated electricity. Fur- and use, they can take over a tric cars are presently running ther incentives for drivers of zero large share of the market from on Norway’s roads, and electric emission cars include substantial conventional models that run on models accounted for 13% of tax breaks, free parking schemes, fossil fuels. new car sales in Norway in 2014 access to bus lanes in urban areas, – a higher share than any other and exemptions from road tolls country in the world. and car ferry charges.

A groundbreaking climate and among the most cost-effective tries with extensive tropical forest initiative ways to mitigate climate change. forests. Norway’s International Climate and Forest Initiative supports Since 2007 Norway has been the Norway’s REDD+ partner coun- global efforts to reduce green- largest single country contributor tries include Indonesia, Brazil, house gas emissions resulting to REDD+ efforts globally, allocat- Guyana, Ethiopia, Liberia, from deforestation and forest ing NOK 3 billion (350 million eu- Peru and Tanzania. A recent degradation in developing coun- ros) a year. These funds are used evaluation credited Norwegian tries (REDD+). Forest and land to pay for emission reductions involvement in Indonesia for use emissions are estimated to achieved in Norway’s partner helping to achieve a significant account for about 10% of global countries, and to finance related logging moratorium and pre- anthropogenic net greenhouse research, efforts to build up glob- pare for wider REDD+ schemes. gas emissions. Reducing such al and national REDD frameworks, Emissions from deforestation in emissions by curbing deforest- and practical measures to combat Brazil have also been radically ation and restoring forests is deforestation in developing coun- reduced since 2007.

19 SWEDEN – investing in climate action and jobs Nordic action on climate change climate on action Nordic Sweden aims to become one of the Sweden is accelerating its transi- Energy and carbon taxes are first fossil-free welfare nations in tion to a fossil-free society with being raised in line with the the world. A new climate policy new investments that will upgrade polluter pays principle. Sweden’s framework designed to make infrastructure and increase energy carbon taxation levels for fossil this possible by 2050 is under efficiency, while also creating more fuels are today the highest in the preparation. By 2020 Sweden’s jobs and promoting low carbon world at around 140 USD/tonne of greenhouse gas emissions outside development. National investment CO2 for households and services. the scope of EU emissions trading programmes particularly focus on will be reduced to 40% below renewable energy, energy efficien- Green energy on the rise their 1990-level. Other targets for cy, public transport, incentives Sweden’s long-term ambition is 2020 include a 20% rise in energy for greener cars, and support for that the national energy system efficiency and the use of renewable local emission reduction initiatives should be based on 100% energy sources to meet 50% of all launched by municipalities, com­ renewable energy. Renewable energy needs. panies and organisations. energy sources, especially

Efficient district heating – and needs. Such schemes exist in or to produce biogas, instead cooling all communities with more than of being sent to landfill. Many Sweden’s progressive electricity 10,000 inhabitants, as well as district heating plants are able certification and energy and many smaller settlements. Since to use various fuels flexibly. carbon taxation policies have the 1980s Sweden’s total district Sizeable district heating sys- favoured combined heat and heating supply has doubled, tems are much more efficient power production (CHP) and while the fuel mix has switched and less polluting than having alternatives to fossil fuels for from about 90% fossil fuels many boilers in individual heating schemes, leading to to 90% non-fossil fuels today. buildings. radical reductions in emissions Sweden’s growing district heating from the heating of buildings. In networks currently have a total of Technologies developed CHP plants 80–90% of the pri- 20,000 km of heating pipes. for district heating are also mary energy in the fuel may be increasingly being used for converted to energy, compared Many schemes exploit readily district cooling in many Swed- to about 50% when only heat is available surplus heat from indus- ish towns. Perhaps surpris- generated. trial processes or power plants. ingly, Stockholm is among the Residual biomass and other world’s leading cities in the District heating schemes today wastes are also increasingly used use of district cooling, togeth- 20 meet 58% of Sweden’s heating to fuel district heating systems, er with Abu Dhabi and Paris. PHOTO: MILJÖFÖRVALTNINGEN MALMÖ

hydropower and biofuels, already power from renewable sources, power programme, the spread account for 52% of total energy which will be increased every of transport biofuels, and the use, so Sweden’s renewables year until 2020. At the same increased use of heat pumps and target for 2020 has already time, subsidies are provided renewable energy for heating. been achieved. This success is to encourage climate-friendly partly thanks to a market-based investments and innovations. electricity certification scheme introduced in 2003. This scheme Most of the future increase in obliges electricity suppliers to renewable energy will come obtain a certain quota of their from a steadily expanding wind

Working towards fossil-free This progress can largely be able fuels. The government is transportation attributed to policies such as currently upgrading Sweden’s Emissions from transportation EU emission standards for new railways and working with still make up roughly a third of vehicles and progressively raised municipalities to enhance local Sweden’s total greenhouse gas national carbon taxes on fossil public transport systems and emissions, though they have fuels, which have encouraged set up more charging stations been declining since around improvements in cars’ fuel for electric vehicles. 2007. Emissions from cars efficiency and the adoption of have fallen to 16% below their sustainable biofuels. Economic incentives to boost 1990-level in spite of growth sales of fuel-efficient car in the vehicle fleet. Sweden Sweden still aims to further models include reduced vehicle has already exceeded the reduce in emissions from the tax rates for “eco-cars” and a EU’s 2020 target of 10% renew- transport sector, by planning “super bonus” for purchasers able energy in the transport of cities to reduce demand for of vehicles with the lowest sector, since the share in 2014 transport, by encouraging the use emissions. A new system was nearly 19% calculated in of public transport, by promoting for rewarding cars with low accordance with the related a shift from road to rail and sea emissions while raising taxes EU directive. transportation, and by developing for cars with high emissions is more efficient vehicles and renew- also currently being planned. 21 Joint Nordic actions Nordic action on climate change climate on action Nordic In addition to realising their Nordic finance for climate- developments including energy national strategies and measures, friendly development efficiency improvements. NDF’s the Nordic countries also pool Nordic development ministers contribution typically amounts to their resources to combat climate coordinate the Nordic countries’ 2–5 million euros per project. NDF’s change through various joint aid and development financing capital is allocated from the devel- Nordic institutions. schemes to ensure they prioritise opment budgets of the Nordic coun- climate considerations. The key tries. The fund’s assets currently The Nordic Council of Ministers Nordic bodies working in this area amount to some €880 million (NCM) is the official inter-govern- are financed jointly by Denmark, mental body overseeing Nordic Finland, Iceland, Norway and Technology transfer cooperation. Climate issues are Sweden. partnerships prominent in the Nordic prime NDF also finances the Nordic ministers’ Green Growth Initiative, The Nordic Development Fund Climate Facility (NCF), to build which is realised by the NCM. (NDF) provides funds to help partnerships between Nordic Cooperation on green growth low-income countries in Africa, organisations and their partners aims to make Nordic energy infra- Asia and Latin America directly in developing countries. NCF structures smarter, create larger address the causes and conse- promotes innovations in sectors markets for favourable solutions, quences of climate change. Funds including energy, transport, water, and give a political lead to pro- are used for both mitigation and health, agriculture and forestry. mote green growth within the EU adaptation activities, typically Grants of up to 500,000 euros may and globally. through co-financing cooperation be provided for projects that meet with multilateral development NCF’s co-financing requirements. The Green Growth Initiative par- banks and Nordic development NCF is jointly administered by NDF ticularly aims to build on Nordic agencies. The climate impacts and the Nordic Environment Finance strengths in climate-friendly of NDF-backed projects in other Corporation (NEFCO). technologies by setting up shared areas such as infrastructure and test and demonstration centres, natural resources are also careful- Nordic governments and NEFCO by defining common standards in ly screened. are also funding the NCM’s Nordic key areas including public sector Partnership Initiative on Up-scaled procurement, and by promoting NDF seeks to utilise innovative Mitigation Action, a pilot emission collaboration on education, train- funding mechanisms, particu- reduction programme in Peru. NDF ing and research. larly in relation to private sector is meanwhile funding a similar

22 Nordic support for projects in low-income countries The Nordic Development Fund climate change mitigation and (NDF) provides co-financing adaptation in 24 low-income for projects that contribute to countries. Nordic action on climate change climate on action Nordic

Sustainable charcoal for rural a business model that should be Tanzania widely replicable in other parts of In Tanzania traditional charcoal Africa. burning results in serious environmental problems. The Deforestation and land use chang- Nordic Climate Facility (NCF) es account for about 90% of Tanza- has funded a project designed nia’s greenhouse gas emissions. to reduce deforestation and The current sustainable charcoal greenhouse gas emissions by project, run by Gaia Consulting promoting the use of sustainably and ARTI Tanzania, should reduce produced charcoal briquettes in emissions by up to 50,000 tonnes homes. The project is providing while preserving about 13,000 120 charcoal kilns and training hectares of native forest. 770 rural entrepreneurs to adopt Sustainable charcoal PHOTO: DENNIS HAMRO-DROTZ production in Tanzania

Sustainable water projects for alert local service partners when World Bank are already scaling a changing climate repairs are needed. Villagers use up the technology for wider use In Kenya NCF has been co-financ- mobile phones to pay a small elsewhere in East Africa. ing a project implemented by the fee for their water. NDF and the Danish Red Cross and the Kenya Red Cross Society to improve access to safe, clean water in nine villages. The project’s smart water dispenser systems use Grundfos submersible water pumps driven by renewable energy from solar panels.

The pumps are remotely PHOTO: GRUNDFOS LIFELINK monitored using a satellite communication system that will Sustainable water projects in Kenya 23 Nordic action on climate change climate on action Nordic pilot initiative in Vietnam. These pilot programmes aim to serve as forerunners for the international financing of nationally appropri- ate mitigation actions (NAMAs).

In Peru the goal has been to cut emissions from waste manage- ment by finding sustainable uses for wastes, aided by increasing private sector involvement. In Vietnam the focus is on the energy-intensive cement produc- tion sector, which is the largest PHOTO: JENNA HYTTI, GREENSTREAM emitter of industrial greenhouse gases in this rapidly developing Recycling centre in Lima, Peru country.

Nordic funding for actions NEFCO’s 32 separate funds have Carbon financing schemes real- closer to home managed assets with a total ised through the Kyoto Protocol’s NEFCO provides loans and value of 501 million euros. Their Joint Implementation (JI) and investments primarily in Central combined investment portfolio Clean Development Mechanism and Eastern Europe, including comprises over 500 projects (CDM) schemes provide additional and the Baltic countries, in sectors ranging from energy revenue for emission reduction for cost-effective developments production and industry to waste projects. whose environmental impacts will management and agriculture. also benefit the Nordic region by Significant climate-related funds Carbon credits can be utilized in reducing emissions of pollutants managed by NEFCO include EU Emissions Trading Scheme by including greenhouse gas the Norwegian Carbon Procure- companies or by governments to emissions, and by improving the ment Facility (NorCaP) and the help meet Kyoto targets. Many of state of the Baltic Sea. NEFCO Carbon Fund (NeCF). NEFCO’s investments apply public

24 Nordic action on climate change climate on action Nordic

NIB loans in 2014 contributed C02 Equal to the CO emissions to an annual reduction of 2 from about 26,000 261,000 tonnes of C0 2 Finnish people. emissions.

NORDIC INVESTMENT BANK

private partnership models. NEF- NIB provides long-term loans to is overseen by the Nordic Council CO has supported many renew- private and public sector partners of Ministers for the Environment able energy and energy efficiency in the Nordic and Baltic regions (MR-M). The MR-M’s members, projects in Asia and Latin America for projects that improve competi- who come from the five Nordic as well as Eastern Europe by pro- tiveness and the environment. countries and three autonomous viding carbon finance. regions, meet regularly to coordi- Many NIB-backed projects aim nate strategic issues, activities, Through a separate Energy to increase the use of renewable funding and practical cooper- Saving Credit scheme NEFCO energy, including geothermal ation. This collaboration helps offers small-scale loans for power in Iceland, wind power in the Nordic countries pull their energy-saving measures realised Denmark and Sweden, and wood collective weight in international in municipal buildings such as energy in Finland. NIB has also forums. schools, hospitals and sports financed climate-friendly infra- halls in Ukraine. Loan repayments structure and public transport Several of the MR-M’s key activi- are directly tied to the resulting schemes including improvements ties relate to climate issues. The savings. to rail transport systems in Nordic Working Group for Global Sweden, Finland, Lithuania and Climate Negotiations (NOAK) Backing for green Nordic and Latvia. coordinates Nordic efforts to Baltic projects promote the adoption of a binding Another financial institution that Coordinated action on key global climate agreement incor- supports emission-reducing issues porating ambitious commitments. schemes, the Nordic Investment Nordic inter-governmental co- Bank (NIB), is owned jointly by operation on environmental NOAK regularly organises relat- the Nordic and Baltic Countries. issues including climate change ed meetings, side events and

25 Nordic action on climate change climate on action Nordic workshops, as well as projects Another important priority for Short-lived Climate Pollutants on issues of current interest with KOL is emissions of short-lived (CCAC). Related Nordic initiatives regard to negotiations, ranging climate pollutants (SLCPs) such have been launched to help con- from international initiatives and as methane, tropospheric ozone trol emissions of soot and other land use issues to equity and and black carbon in the form of SLCPs, and spread knowhow on accounting. soot. Such pollutants contrib- cost-effective measures. ute considerably to warming in The Nordic Council of Ministers’ sensitive regions like the Arctic. Such efforts illustrate how the cross-sectoral Working Group on The Nordic bloc is pro-actively Nordic Countries are effectively Environment and Economy (MEG) driving international initiatives to pooling their resources to con- funds Nordic projects that review reduce SLCP emissions through tribute to urgent global action, how economic instruments can organisations including the Arctic while also collaborating to shape be used to help mitigate climate Council and UNEP’s Climate and their own forward-looking climate change and promote sustainable Clean Air Coalition to Reduce policies at home. green growth.

Reviews of urgent climate topics The MR-M’s Climate and Air Pol- lution Group (KOL) runs projects designed to combat climate change and limit the harmful impacts of transboundary air pollution in the Nordic and Arctic regions. Recent KOL reports have focused on issues including Nordic climate policies, carbon budgets, and the causes and consequences of climate change in Nordic-Arctic regions, including laser-mapped changes in glaciers and ice caps in Greenland, Iceland PHOTO: SILJE BERGUM KINSTEN and Norway.

26 Key Nordic organisations and initiatives Nordic action on climate change climate on action Nordic • The Nordic Council of Ministers coordinates progress on climate-friendly development across the region through its Green Growth Initiative. www.norden.org/greengrowth

• The Nordic Way web magazine features examples of Nordic Green Growth: www.nordicway.org

• The Nordic Development Fund (NDF) co-finances climate-friendly developments in Africa, Asia and Latin America. www.ndf.fi

• The Nordic Environment Finance Corporation (NEFCO) invests in developments with positive climate and environmental im­- pacts in neighbouring regions of Central and Eastern Europe, and in climate projects globally. www.nefco.org

• The Nordic Climate Facility (NCF) provides co-financing for the transfer of Nordic climate-related knowhow to developing countries. www.ndf.fi

• The Nordic Investment Bank (NIB) promotes sustainable growth by financing projects that improve competitiveness and the environ- ment in the Nordic and Baltic regions. www.nib.int

• Nordic Energy Research is a platform for cooperative energy research and policy development under the Nordic Council of Ministers. www.nordicenergy.org

27 Ved Stranden 18 DK-1061 Copenhagen K www.norden.org

Nordic action on climate change This booklet presents actions taken by the Nordic countries to speed the transition to a sustainable low-carbon society. It shows how sustainable development is possible, with strong climate policies contributing to economic growth and job creation as well as environmental improvements. The Nordic countries successfully demonstrate how ambitious climate change mitigation targets and policies can be com- bined with high levels of human development.

ANP 2015:793 ISBN 978-92-893-4402-9 (PRINT) ISBN 978-92-893-4403-6 (PDF)