Biogas Norway: We must have greater ambitions for Norwegian climate policy than imports of biofuel – Alting

Last Wednesday, the Norwegian Environment Agency handed over the report “Climate measures in Norway – knowledge base 2024” to Climate and Environment Minister Andreas Bjelland Eriksen. It contains measures that will reduce emissions of greenhouse gases from all sectors of society until 2035. It states that what have until now been important instruments in Norwegian climate policy, the purchase of quotas and the import of biofuel, should end.

We must start to see Norwegian climate policy as a competitive advantage, and not an expenditure item for extensive quota purchases abroad.

Pia Farstad von Hall & Nasrin Naimy
Biogas Norway

The good news is that it should be the starting point for investing in a green industrial boost and new green value chains to compensate for reduced oil and gas exports in the future.

The professional councils point to increased use of biogas as one of the most important measures going forward to achieve the climate goals in both land transport and sea transport, and in agriculture. That’s good news. Increased production of Norwegian biogas will give an industrial boost, value creation of several billion and potentially 16,000 new jobs. In addition to emission cuts in many different sectors.

The problem, however, is that the report does not say anything about how this should happen.

Ambitions should be raised

Norwegian biogas production has remained at a stable low level in recent years, despite increasing demand in the market. Last year’s figure was 0.7 TWh. In Denmark, there has been a fourfold increase in production in 10 years. Development in Norway is at a stand still, although there has been an increase in access to raw materials.

At the same time, the report points to imports as a possible means of action. The industry strongly warns against this. Firstly, it limits the climate gains to other countries. In addition, there is limited access to biogas suitable for transport purposes on the international market, as much of the production already goes to the pipe network in Europe. At the same time, it weakens an industry that already employs 1,300 people in local communities across the country and creates values ​​worth 1,500 million each year.

A major energy nation that Norway must aim to lead in the green shift.

Pia Farstad von Hall & Nasrin Naimy
Biogas Norway

Commissioned by NHO, the Boston Consulting Group (BCG) has assessed Norway’s competitiveness in the green transition. In the report from this year, it is stated that Norway has become a climate sink. The projection shows that 40 percent of Norwegian exports will disappear by 2050, and that Norway is not doing enough to ensure growth in green value chains. As a result, Norway falls from fourth place in the ranking in 2021 to seventh place this year.

BCG points to biogas as a future energy mix, with a potential of 15–20 TWh in 2050. This requires greater ambitions on behalf of the green shift and stronger political frameworks for Norwegian business.

Competitive advantage and not an expense item

We must start to see Norwegian climate policy as a competitive advantage, and not an expenditure item for extensive quota purchases abroad. The professional councils emphasize that we cannot continue to lean heavily on quotas, as the purchase of emission reductions abroad will become both more expensive and less available in the years ahead. Measures such as the import of green fuel do not provide fertile ground for a cost-effective climate policy, nor do they provide a transition in Norway. To reverse the trend, it is necessary to invest in Norway. Therefore, the government must follow up with concrete measures, instead of facilitating the import of biogas from abroad. We have access to plenty of raw materials, technology and the will to create a new, circular industrial adventure.

A major energy nation that Norway must aim to lead in the green shift. The Norwegian biogas industry is ready to deliver green fuel, climate cuts, climate-smart waste management and create the jobs of the future. The question that remains is whether the government has equally clear ambitions on behalf of the new green industries that we will live on after oil, or whether we continue with a failed and costly climate policy.