COP19 SIDE EVENT

REDUCING EMISSIONS AND GROWING THE ECONOMY – THE NORDIC WAY

- Green growth the Nordic Way Anna Gran, Coordinator, Nordic Council of Ministers’ Climate and Air Pollution Working Group

- Open Climate NetworkTaryn Fransen, Project Director for Open Climate Network –World Resources Institute

- Nordic Climate Policy – a case study on efficient policy measuresSusanne Krawack, Chief consultant – ConcitoOla Alterå, Senior Adviser – Global UtmaningCamilla Skriung, Policy advisor – ZeroJakop Dalunde, Programme director – Fores

- IEA’s Nordic Energy Technology Perspectives – A carbon-neutralenergy system by 2050Benjamin Donald Smith, Senior Advisor - Nordic Energy Research

- Panel discussion and interventions from the audience

Nordic Climate policy –a case study on effective measures and policies

A population of about 25 million A GPD of about USD 1 trillion

Two parts:

GHG mitigation in the Nordic Region – according to OCN – the policy landscape

Four cases of successful GHG mitigation from Nordic countries

Reduction af fossil CO2 by 9% between 1990 and 2011, 25% including LULUCF

1990 1995 2000 2005 20100

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4

6

8

10

12

14

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100

200

300

400

500

600

a. Nordic CO2e Emissions

Nordic CO2e Emissions per Capita

Nordic CO2e Emissions per GDP

Tons CO2e per Capita Tons CO2e per million USD

Energy mix in electricity supply

7.1%

3.2%

6.4%

1.0%

51.7%

0.7%

19.9%

0.3%

9.6%

Nordic countries

Biomass and waste Wind Natural Gas

Geothermal Hydro Oil

Nuclear Solar Coal

Energy mix in the total energy consumption

32%

11%

10%

15%

30%

2%

Oil Gas Coal Nuclear Renewables (including biofuels)

Others

Reduction commitments

2020 compared to 1990:

Sweden 40% non ETSFinland 16% non ETS

Norway 30% both ETS and non ETSDenmark 40% % both ETS and non ETS

Type of policies:

Policies to utilize renewable resourcesEnergy and carbon taxesCooperation between industry, R&D and governmentLocal governments active roleBuilding codesFocus on energy efficiency

More than GHG mitigation:Jobcreation ExportAttract international companies

Why?Innovative industry - clusterFavourable and long term framework Support by feed in tarrifsSupport for R&D

Case: Wind power in Denmark

Case: Wind power in Denmark

Transmission cables and a joint Nordic electricity market

Case: District Heating in Sweden

Ola Alterå Senior Adviser – Global Utmaning

OECD Energy Balance

District Heating –utilizing resources that otherwise would have been lost

• Combined heat and power producion

• Waste heat from industries• Municipal waste incineration• Geothermal energy• Lower quality bioenergy• Solar heat

District Heating in Sweden – and the Nordics

• About 60 TWh of heat production• Present in every community with more than 10,000

inhabitants• About 50% of heating market - dominating in city

centres– Denmark 60%– Finland 50%– Iceland 90% - geothermal– Norway < 5%

District Heating Fuels in Sweden 1980-2011

How could it be done?

• Local governance, planning and cooperation• General price incentives – energy and later carbon tax• Non regulated market stimulating competition and

innovation – mostly by community owned companies

District Cooling

Replacing air noisy, climate

unfriendly air conditioning with

free cool (i.e. deep sea),

condensing coolers etc.

Stockholm, Paris, Abu Dhabi

Case: Zero emission cars in Norway

Camilla Skriung, Policy advisor ZERO

Zero emission cars in Norway

• Norway, one of the smallest car markets in Europe, has become a very large zero emission car market. How did this happen?

Zero emission cars in Norway

Annual sales of zero emission cars in Norway 2009-2013

Sales of zero emission cars in Norway in 2013

All time high record of 9 % (rechargeable cars) of new cars sales was passed in September 2013.

Zero emission cars in NorwayNorwegian zero emission car sales in comparison with other European countries:

The share of electric cars of new cars in Norway is at world record level, more than 4 times greater than in the second country on the list in Western Europe.

Zero emission cars in Norway

• How did this happen?

• The main success factors have been:

• Sufficient financial incentives at the time of purchase

• Increased convenience/time saving• Charging infrastructure• Long-term predictable policy

Zero emission cars in Norway• Norwegian zero emission car incentives:

• 1) Exemptions: Registration fee exemptionValue added on purchase Public parking fee exemptionRoad toll exemptionReduced tax on electric company carsRoad usage tax exemption

• 2) Free charging infrastructure

• 3) Permission to use lanes reserved for public transportation

Zero emission cars in Norway

• 4) Considerably lower annual fees

• 5) Public charging spots

• 6) Hydrogen filling stations

• 7) Transnova

• 8) Public procurement

• 9) Free ferry transport

Zero emission cars in Norway

Case: Reducing emissions from the Swedish transport sector

Jakop DalundeProgramme director, FORES

Background

● Ambition to reduce non-EU ETS overall emissions with 40 percent by 2020, compared to 1990 emissions.

● This means a reduction of approximately 20 million tons Carbon dioxide equivalents.

● Transports make up two thirds of emissions in the non-trading sector

Background

Greenhouse gas emissions from road transportation (in million tons CO2e)

Cars down, trucks up

● A closer look at the numbers show that emissions from cars down with about 10 per cent

● Emissions from heavy duty transport continue to increase, except from a dip in 2009.

● Total increase from trucks since 1990 is over 34 per cent

Cars down, trucks up

● A closer look at the numbers show that emissions from cars down with about 10 per cent

● Emissions from heavy duty transport continue to increase, except from a dip in 2009.

● Total increase from trucks since 1990 is over 34 per cent

Cars down, trucks up

Greenhouse gas emissions from road transportation

Policy: The carbon tax

● The decision taken by the Swedish parliament in 1990, came into force 1 January 1991.

● Began at 0.25 SEK/kg, currenty the carbon tax is 1.08 SEK/kg Co2.

● Combined with lowered income tax, Pigovian perspective

Policy: The carbon tax

● Two kinds of incentives: more expensive to drive fossil-vehicles and substitution effect, increased demand for renewably energy and alternative transportations.

● Elestacity - higher cost does not equal lower emissions.

Policy: Other measures

● Exemption from the energy and carbon dioxide tax for all bio-fuelled transportations - corresponding to a tax relief of about 5 Swedish kronor per litre of petrol.

● Pump station law

Policy: Other measures

● Support for research and demonstrations of bio-fuels - in 2009 a three-year support of 875 million Swedish kronor was granted

● Bonus for buying greener cars. Future bonus/malus system.

Evalutation

Carbon dioxide emissions for newly registered cars, gram CO2/km

Evaluation

● Given the large number of actions, it is hard to evaluate each separate policy.

● However, likely the combination of policies were key.

● Emissions lowered by 7% since introduction of carbon tax

Conclusion

● The carbon tax likely amajor contributing cause of lowering emissions from the transport sector

● Emissions likely would have increased without it, since traffic is still growing.

● Effect likely been much stronger combined with other measures