By increasing CO2 charges on the Norwegian continental shelf and placing the revenue in a climate fund, it will be possible to finance and carry out significant climate measures at the major Norwegian emission sources.
ZERO suggests an increase in the CO2 charge for petroleum activity on the Norwegian continental shelf to NOK 756 per tonne, and that the income should be placed in a fund that could finance CO2 capture and storage in industry, and electrification of the continental shelf.
Reducing Norwegian climate gas emissions is vital, but expensive. With current measures, it is unlikely that one will come close to fulfilling the Climate Settlement commitments of cuts of 17-19 million tonnes of CO2 in 2020. Therefore, new and effective measures are needed in order to quickly finance large emission cuts.
Climate Cure 2020 showed that there is huge potential for CO2 reductions in industry and offshore installations, and that measures at the large point sources are necessary in order to secure the Climate Settlement.
However, the measures currently used by the authorities have major weaknesses. The CO2 charge has been almost halved since 1998, and the quota price is too low to incentivise purification or other major climate measures.
Financing emission reductions
ZERO suggests therefore an increase in the CO2 charge for petroleum activity on the Norwegian continental shelf to NOK 756 per tonne, and that the income should be placed in a fund that could finance CO2 capture and storage in industry, and electrification of the continental shelf.
Such a charge would provide an average yearly income of approximately 12 billion, and would generate roughly NOK 120 billion over a ten year period. Accordingly, the fund would be large enough to finance climate measures from the largest sources of pollution in Norway.
The climate fund could reduce carbon emissions by 12.75 million tonnes during the next ten years. This supposes that companies agree to a binding agreement on emission cuts.
Additionally, ZERO suggests that a technology requirement be introduced with regards to current and future emission concessions, in order to give sufficient security that the emission reductions will be carried out.
We should strive towards a funding model for CO2 capture that ensures the most effective and quick implementation of the measure. A funding model for measures that has been proven to work, is the NOx fund.
A climate fund combined with an increase in the CO2 charge is the most effective single measure one can implement in order to lower Norwegian climate emissions quickly and significantly.