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Carbon leakage is a situation in which a policy-induced reduction in CO2 emissions domestically is followed by increased emissions abroad. We investigate from a Nordic perspective what industries are at risk of carbon leakage. We find that aluminum and copper, basic iron and steel and paper, all having energy intensities over 40 per cent, have the highest risk of carbon leakage. The policy of giving free emissions allowances to industries at risk of carbon leakage is relatively equally spread out, leaving industries at high risk “undercompensated” and industries at low risk “overcompensated”. We find that the leakage rates for the energy intensive industry from unilateral ambitious EU targets could be as high as 70%, and even as high as 85% if the Nordic countries unilaterally adopt more ambitious targets. The key to limit the risk of carbon leakage is collective global action.
This booklet presents actions taken by the Nordic countries to speed the transition to a sustainable low-carbon society. It shows how sustainable development is possible, with strong climate policies contributing to economic growth and job creation as well as environmental improvements. The Nordic countries successfully demonstrate how ambitious climate change mitigation targets and policies can be combined with high levels of human development.
On cover: Energy.
Available online: http://urn.kb.se/resolve?urn=urn:nbn:se:norden:org:diva-6010 “The aim of the Nordic countries is to be carbon neutral and to demonstrate leadership in the fight against global warming.” These were the words of the Nordic prime ministers in their declaration at a summit in Helsinki as part of active Nordic climate co-operation under the auspices of the Nordic Council of Ministers. Each of the five Nordic countries has national goals for becoming carbon neutral before or by mid-century. In the Helsinki Declaration the Nordics committed themselves to assess the scenarios for how the different Nordic countries can achieve their respective carbon neutrality goals, including implications for various sectors. The aim of this study is to contribute to making this assessment possible and to highlight areas where co-Nordic initiatives can strengthen the Nordic countries’ aims towards carbon neutrality.
After the recent financial and economic crisis, greening the economy has become a major focus for international and national discussions: How to combine forceful and effective action to meet climate change and other environmental challenges with stronger and more sustainable economic development, in both developed and developing countries. This synthesis report on the Nordic countries' environmental policy experiences, focuses on the use of economic instruments and how this policy has contributed to the integration of environmental concerns into economic growth and development policies. The report demonstrates that the Nordic countries have been successful in achieving substantial reductions in several major pollutants and clear improvements in local and regional environmental quality, while maintaining an internationally respectable rate of economic growth. This decoupling of economic development from growth in emissions has been achieved through a range of policy instruments, with a strong and increasing element of economic, market-based instruments. The challenge, and the opportunity, for the Nordic countries is to strengthen and deepen such policies, with even more effective design of and combination of policy instruments, to deal with new and remaining threats to the local, national and international environment.
This booklet presents actions taken by the Nordic countries to speed the transition to a sustainable low-carbon society. It shows how sustainable development is possible, with strong climate policies contributing to economic growth and job creation as well as environmental improvements. The Nordic countries successfully demonstrate how ambitious climate change mitigation targets and policies can be combined with high levels of human development.
Available online: https://pub.norden.org/nord2023-037/ This policy brief highlights the main takeaways from the project “Nordic Stocktake and Visions – Pathways to climate neutrality”. The project has resulted in two main reports: Nordic Stocktake – Pathways to Climate Neutrality & Nordic Visions of Climate Neutrality. The Nordic Stocktake concludes that the Nordics need to accelerate the green transition, especially within transport, industry and agriculture. Countries that have the tools, know-how and institutional and financial capacity can demonstrate mitigation options in all sectors. The project's visions of a climate neutral Nordic society is not just only about emission reductions and technology. The net zero transformation creates opportunities, jobs and spurs investments and innovation. Nordic climate neutral societies are in social and environmental balance. A smarter society with inclusive democracy and long-term policies.
Available online: https://pub.norden.org/temanord2023-545/ The UNFCCC Global Stocktake will be conducted during COP28 in December 2023. The Nordic Stocktake report is intended as a regional tool to support the Global Stocktake process and spur to further climate action, both within the Nordics and beyond. The Nordic region needs to increase the pace of the green transition if we are to lead by example. The report is a stocktake of GHG emissions in the Nordic countries, and a description and assessment of the different national pathways towards climate neutrality in the Nordic region. Many of the challenges on the path towards climate neutrality are not unique to the Nordic countries and solving these in the Nordic region – in countries well-positioned to do so – would prove valuable for global climate action. The report highlights common challenges across the Nordic countries and proposes opportunities for further cross-Nordic collaboration.