Abatement of greenhouse gas emissions in Norway and the EU towards 2030

Norway’s climate targets for 2030 correspond to those of the EU. The Norwegian government intends to fulfil the ambitions jointly with the EU, but it is still unsettled how flexible the mechanism for joint implementation will be and the conditions Norway will face. The EU has decided that some trading of emissions will be possible within the non-ETS sector and that some of the commitments within non-ETS can be fulfilled by cancelling quotas in the emission trading system (ETS). The aim of the project is twofold: First, we will analyse costs and emissions for Norway and the EU under alternative designs of these flexibility mechanisms, taking into account the EU actions and consequences for energy prices and carbon prices. We do this by means of simulations of the energy market model LIBEMOD and SSB’s CGE models. The second aim is to develop the CGE model SNoW-No (for Norway) to account for potentials for changes in climate technologies towards 2030. The latter is based on close collaboration between SSB, University of Oldenburg and NEA, who provides engineering and emissions expertise.