OECD Environmental Performance Review of Norway 2022: Presentation of key findings from Chapter 1

Norway 2022 Towards Sustainable Development Key findings of Chapter 1

Photo: John Yngvar Larsson

NORWAY’S ENVIRONMENTAL PERFORMANCE REVIEW 2022 Launch event, 22 April 2022

Norway is on track to achieve many but not all Sustainable Development Goals

Source: Sachs, J.D. et al. (2021), The Decade of Action for the Sustainable Development Goals, Sustainable Development Report 2021, Cambridge University Press, Cambridge, https://dashboards.sdgindex.org.

Pollutant emissions have decreased over the past decade

Source: EMEP (2022), WebDab (database).

Cities enjoy good air quality overall

Source: Country submission.

Norway has abundant water resources, but needs to tackle water losses

Iceland

501,420

Ireland

New Zealand

Korea

Canada

United States

Chile

Greece

Norway

Norway

Finland

Italy

Sweden

Canada

Latvia

Costa Rica

Australia

Australia

Slovenia

Japan

0

25,000 50,000 75,000 100,000

Water supply, share by sector, 2020

Drinking water abstraction per capita, top 10 OECD countries

Renewable resources per capita, top 10 OECD countries

0

50

100

150

200

m3/cap.

Source: OECD (2021), OECD Environmental Statistics (database); Statistics Norway (2021), "Water supply and safety and preparedness plans", StatBank (database).

Norway is not on track to decouple waste generation from economic growth Total waste by source, trends and projections

Note: Change in classification implemented in 2012 concerning mainly the breakdown for industrial and construction waste.

Source: Statistics Norway (2021), "Waste Accounts", StatBank (database).

Norway has low material productivity and a high material footprint per capita

Note: Left panel: Material footprint refers to the global allocation of used raw material extracted to meet the final demand of an economy.

Source: OECD (2021), “Material resources”, OECD Environment Statistics (database). Right panel: Domestic material consumption (DMC) equals the sum of domestic extraction of raw materials used by an economy and its physical trade balance (imports minus exports of raw materials and manufactured products). DMC productivity designates the amount of GDP generated per unit of materials used. GDP at 2015 prices and purchasing power parities

Norway’s energy mix is much more decarbonised than the OECD average

Note: The breakdown of energy supply excludes heat and electricity trade, however percentages shown reflect ratios calculated on total energy supply. Biofuel and waste include negligible quantities of non-renewable waste.

Source: IEA (2021), IEA World Energy Statistics and Balances (database).

GHG emissions are close to 1990 levels

Note: IPPU = Industrial processes and product use. LULUCF = Land use, land-use change and forestry.

Source: UNFCCC (2021), Greenhouse Gas Inventory (database).

Norway is on track to electrify its vehicle fleet

Registered private cars by fuel 3,000,000.0 Other fuel 2,500,000.0 2,000,000.0 1,500,000.0

Diesel hybrid Diesel hybrid, chargeable Petrol hybrid Petrol hybrid, chargeable

1,000,000.0 500,000.0

Electric Petrol Diesel

0.0

Source: Statistics Norway (2021), StatBank (database).

The share of green taxes has declined due to tax incentives for electric vehicles Environment-related tax revenue by tax base Pollution and resources % of GDP (right axis)

Motor vehicles and transport % of total tax revenue (right axis)

Energy products

NOK billion, 2015 prices 90 000

% 8

80 000

7

70 000

6

60 000 50 000 40 000 30 000

5 4 3

20 000

2

10 000

1

0

0

Note: Date include estimates and preliminary data.

Source: OECD (2022), “Environmental policy instruments”, OECD Environment Statistics (database); Statistics Norway (2022), "Environmental taxes - 10645", StatBank (database).

Norway taxes a high share of CO2 emissions Prices of GHG emissions in 2022

Note: Tax rates applicable in 2022 and ETS allowance price of NOK 817 per tonne of CO2.

GHG emissions data, excluding LULUCF, refer to 2020.

Source: Country submission

The environmental impact of recovery measures was mixed USD 26.7 billion in 2020 and 2021

Green Platform: USD 131 million

Oil and gas industry: USD 15.2 billion

Various green measures

Aviation sector: USD 1 billion

Positive impact

Mixed impact Undetermined

Negative impact

Accelerating a just, green transition ASSETS • Human capital with high education levels • Well-functioning institutions • Effective tax system & robust fiscal policy framework PACE OF TRANSITION • Transition is already underway • Avoid critical macroeconomic consequences • Impact of geopolitical context WAY FOREWARD • Strengthen dialogue between government, private sector and civil society • Promote structural changes; avoid replicating inequality patterns • Don’t lose sight of long-term goals (climate neutrality by 2030 and low-carbon society by 2050)

Norway has the capabilities and financial means to accelerate a just, green transition within its borders and abroad.

Find out more: oe.cd/epr-norway

Full report

Highlights

Online country profile oe.cd/il/env-norway

Thank you for your attention!