The findings highlight the significance ofNordic countries in leading the world in the environment and greenhouse gasemission field, emphasizing the effect of climate change and policies
Introduction
Background
1.1.1 Overview of climate change and its global impact
Climate change, defined as the long-term alteration of temperature and typical weather patterns in a place, has emerged as a paramount global challenge, demanding immediate attention and concerted action This phenomenon, primarily driven by anthropogenic activities, particularly the combustion of fossil fuels, is causing a cascade of environmental, social, and economic impacts that threaten the well-being of humanity and ecosystems worldwide.
The global impacts of climate change are becoming increasingly evident Rising sea levels, intensifying weather events, and disruptions to natural ecosystems are just a few manifestations of this multifaceted challenge These impacts are expected to exacerbate in the coming decades, posing significant risks to food security, water resources, human health, and infrastructure.
1.1.2 Importance of international collaboration in addressing climate change
Climate change is a global challenge that transcends national borders No single country can effectively address this issue on its own International collaboration is paramount to develop and implement effective mitigation and adaptation strategies, share knowledge and resources, and promote equitable action among countries.
The Paris Agreement, adopted by 196 Parties at the 21stConference of the Parties (COP21) of the United NationsFramework Convention on Climate Change (UNFCCC) in 2015,marked a pivotal moment in international cooperation on climate change This landmark agreement set a long-term goal of limiting global warming to well below 2 degrees Celsius, preferably to 1.5 degrees Celsius, compared to pre-industrial levels It also established a framework for countries to contribute to achieving this goal through nationally determined contributions (NDCs).
International collaboration is not merely an option; it is imperative. The challenges posed by climate change are too vast and complex for any single nation to overcome alone By working together, sharing resources, and fostering innovation, the global community can rise to this challenge and build a more resilient and sustainable future for all.
1.1.3 Sustainable Development Goals and Climate Change Mitigation
Sustainable development is an approach to social, economic, and environmental planning that attempts to balance the social and economic needs of present and future human generations with the imperative of preserving, or preventing undue damage to, the natural environment
The United Nations has identified 17 Sustainable Development Goals (SDGs) to be achieved by 2030, which aim to end poverty, protect the planet, and ensure prosperity for all Climate change mitigation is an essential component of sustainable development, as it contributes to the achievement of several SDGs, including SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities), and SDG 13 (Climate Action).
SDG 7 aims to ensure access to affordable, reliable, sustainable, and modern energy for all Climate change mitigation can help achieve this goal by promoting the use of renewable energy sources, such as solar, wind, and hydroelectric power, which are clean, abundant, and sustainable.
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SDG 11 aims to make cities and human settlements inclusive, safe, resilient, and sustainable Climate change mitigation can help achieve this goal by promoting sustainable urban planning and design, such as green buildings, public transportation, and bike lanes
SDG 13 aims to take urgent action to combat climate change and its impacts Climate change mitigation is a critical component of achieving this goal.
Nordic countries
The Nordic countries, also known as the Nordic region or Scandinavia, consist of five sovereign nations in Northern Europe: Denmark, Finland, Iceland, Norway, and Sweden These countries share historical, cultural, and linguistic ties, as well as a similar social and political model known for its emphasis on social welfare, equality, and high living standards.
The Nordic Council is a forum for cooperation among the Nordic countries, facilitating collaboration on various issues such as economic policies, cultural exchange, and environmental concerns The council serves as a platform for these nations to address common challenges, share experiences, and work together on issues such as economic policies, environmental sustainability, cultural exchange, and social welfare The Nordic Council plays a crucial role in promoting unity and fostering dialogue among the Nordic countries, contributing to the region's reputation for effective regional cooperation.
1.2.2 Nordic countries's commitment to climate action
The Nordic Council has introduced progressive policies to combat climate change. Nordic countries’ forward-looking climate and energy policies have been designed on the basis that well-planned efforts to reduce greenhouse gas emissions can mitigate climate change while also promoting sustainable economic growth and employment This decoupling of emissions from economic growth has already begun in the Nordic region.
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First, they make the most of renewable assets The Nordic countries are variously endowed with plentiful renewable energy resources including hydropower, wind power, geothermal energy and forest biomass Each country is striving to make the most of the renewable resources available locally The high and widespread levels of renewable energy are due to the use of hydropower in Norway and Sweden, and the effective use of biomass in combined heat and power plants in Finland and Sweden Meanwhile Denmark has the highest share of wind power in the world, and Iceland has abundant geothermal energy.
Figure 1.1 Nordic electricity generation mix (TWh) in 2013
(Source: International Energy Agency / Nordic Energy Research (2016), Nordic Energy
Technology Perspectives 2016) Second, Nordic countries play a role as green technology forerunners Nordic countries have proactively encouraged research and development investments in clean energy sources and energy-efficient technologies The establishment of domestic markets for environmentally friendly technologies not only fosters the creation of new green jobs but also lays the foundation for increased exports, especially as other regions seek solutions to address the global climate challenge
Third, The Nordic countries have worked together for decades to make economic growth and welfare improvements compatible with ambitious environmental policies, while actively contributing to environmental improvements in the NordicRegion and beyond.
Literature review
Nordic Climate Policies
The discussion of how Nordic countries promote “green growth” is rising to the top of the policy agenda for every national leader as a result of the burning issue in recognition of the major challenges presented by global warming and climate change derived from carbon dioxide emissions Therefore, this topic has raised the attention of many researchers for years and some featured research can be listed such as:
"Nordic Green to Scale" (Mariko Landstrửm, Oras Tynkkynen (ed.), Tatu
Leinonen, Janne Peljo, 2019) explored the potential for scaling up green solutions in the Nordic region It delved into various sectors, including energy, transportation, and consumption, providing insights into policy measures.
"Nordic Energy Technology Perspectives 2016" (Markus Wrồke, Marcus Liljeberg,
Fredrik Martinsson, 2016) focused on the energy sector in the Nordic region The report provided insights into the technological perspectives and innovations required for sustainable energy development in Denmark, Finland, Iceland, Norway, and Sweden It discussed various aspects of energy technology, including renewable energy sources, energy efficiency, and the transition to a low-carbon energy system. Additionally, the report offered recommendations and scenarios for policymakers, industry stakeholders, and researchers to guide the Nordic countries in achieving their energy and climate goals.
“The Nordic Countries in the Green Transitions - more than just neighbors” (Tine
Sundtoft, 2018) explored the collaborative efforts of Denmark, Finland, Iceland, Norway, and Sweden in addressing environmental challenges and transitioning towards sustainable practices The report was expected to delve into regional initiatives, policies, and strategies aimed at achieving greener economies. Emphasizing the interconnectedness of these nations beyond geographical proximity, it may analyze the effectiveness of individual country policies and showcase successful collaborative projects.
Global Climate Agreements
The Nordic countries – Denmark, Finland, Iceland, Norway, and Sweden – have carved a niche as frontrunners in climate change mitigation Yet, beyond individual efforts, their regional cooperation stands out as a key driver of their success This part of the literature review aims to give background information on these agreements and their collaborative efforts.
The Nordic countries are working actively to ensure swift and full implementation of the Paris Agreement, an international treaty on climate change Adopted in 2015, the agreement covers climate change mitigation, adaptation, and finance including a robust work programme by the end of 2018, and to promote global action and increased cooperation through the United Nations Framework Convention on Climate Change (UNFCCC) and other international climate policy forums.
“Nordic Council of Ministers' Nordic Action on Climate Change” (2017) (Nordic Council of Ministers, 2017): This declaration sets ambitious regional goals for reducing greenhouse gas emissions and transitioning to a low-carbon economy It outlines specific areas for cooperation, including energy, transportation, and the circular economy Bird et al (2017) stated that: Along with the EU, the Nordic countries aim to achieve a reduction of at least 40% compared to 1990 by 2030. Denmark’s target is to have the entire energy supply covered by renewable energy, expected to result in a 75% reduction in greenhouse gas emissions Finland has a vision of cutting emissions by 80% in 2050 as part of a wider international effort. Iceland has set the target of 50–75% cuts in net greenhouse gas emissions as an aspirational goal for 2050 Norway aims to be carbon-neutral by 2050 and Sweden plans to have zero net emissions of greenhouse gasses in the atmosphere by 2045.
“Nordic Council of Ministers’ the Road towards Carbon Neutrality in different Nordic countries” (2020) (Nordic Council of Ministers, 2020): This study identifies joint challenges in reaching carbon neutrality on the Nordic countries and highlights sectors and potential activities where enhanced Nordic cooperation could contribute to the fulfillment of the carbon neutrality goals, in line with the Nordic prime ministers’ 2019 Declaration on Nordic Carbon Neutrality All five Nordic countries,
Denmark, Sweden, Norway, Finland and Iceland, have set national goals for carbon neutrality before or by mid-century In 2020, under the Helsinki Declaration on Carbon neutrality, the Nordic countries committed themselves to assessing the scenarios for how to achieve their respective carbon neutrality goals This report highlights the areas where Nordic cooperation and initiatives can support the road towards carbon neutrality in the Nordic countries.
Several bilateral agreements, like the "Green Deal Action Plan between Denmark and Sweden" (2022) (Denmark and Sweden, 2022), further solidify collaboration on specific areas like offshore wind farms, carbon capture and storage, and green technology development Skou-Nielsen (2021) analyzes the effectiveness of these deals in addressing shared energy challenges and facilitating joint investments.
Beyond formal agreements, the Nordic countries benefit from a strong network of informal collaboration Regular meetings at ministerial and expert levels, ad-hoc working groups on specific topics, and active participation in regional initiatives like the Arctic Council foster continuous dialogue and knowledge exchange. Bọckstrửm (2014) emphasizes the trust, shared values, and flexible nature of this informal cooperation, allowing for rapid responses and innovative solutions.
The Nordic countries' agreement on climate change mitigation is a powerful example of regional collaboration Formal agreements, informal networks, and shared values have driven their success in joint research, policy harmonization, and project development While challenges exist, the Nordic model offers a beacon of hope for global climate action, demonstrating the effectiveness of coordinated efforts, knowledge sharing, and flexible adaptation As the world grapples with this immense challenge, the Nordic experience holds invaluable lessons for fostering regional cooperation and accelerating the global transition to a sustainable future.
The Nordic approach to climate change mitigation
Overview
The Nordic countries' forward-thinking climate and energy policies are based on the idea that well-planned initiatives to reduce greenhouse gas emissions can mitigate climate change while also supporting sustainable economic growth and employment The Nordic region has already begun to decouple emissions from economic growth In 2016, Nordic CO2 emissions per unit of power produced were one-fifth of the global average, but total GDP climbed by 2.2% to EUR 1,073 billion The Nordic Region has already begun to decouple emissions from economic growth.
Figure 3.1 Decoupling environmental impact from economic growth (Source: Statistics)
The Nordic region leads in renewable energy consumption Since 2014, the proportion of renewable energy in total energy consumption has climbed considerably Renewable energy accounted for 37% of Nordic energy consumption in 2014 Renewable energy has increased at roughly three times the rate of the EU average.
Table 3.2 Renewables share of energy consumption in the Nordic countries and EU-28 (% gross final consumption, 2005 and 2019) (Source: Renewable Energy in the Nordics
Ambitious carbon reduction objectives for future decades have also been established, with each country outlining ambitious targets and ambitions for 2050.
Nordic countries mitigate climate change
Denmark has made tremendous strides toward lowering its greenhouse gas emissions Between 1990 and 2019, the country lowered its overall greenhouse gas emissions by 38% Despite a slight rise in economic activity, Denmark's greenhouse gas emissions climbed by 1.7% in the first quarter of 2023.
Figure 3.3 Greenhouse gas emission trends in Denmark 1990-2019 - Total (excluding LULUCF cf the joint EU 2020 target), by gas and by sector (Source: Denmark’s climate targets and progress (2021))
Denmark has contributed to efforts to achieve the Convention's joint EU target by decreasing greenhouse gas emissions in sectors not covered by the EU Emissions Trading Scheme by at least 20% in 2020 compared to 2005 levels Denmark strives to be one of the world's most environmentally friendly countries Its Parliament unanimously passed a new climate law in June, aiming to cut greenhouse gas emissions by 70% below 1990 levels by 2030, with net zero emissions by 2050. This represents a significant increase over the 37% reduction anticipated by 2020.
Denmark has been able to decouple the rise of energy consumption from economic growth as a result of greater energy efficiency The country's overall electric power usage is expected to fall by 1.49 billion kilowatt hours (-1.29 percent) between 2023 and 2028.
Chart 3.4 Total consumption of electric power in Denmark from 2000 to 2028 (Source:
Denmark has made great advances in renewable energy Wind farms generate more than half of Denmark's electricity The highest wind energy production in 2023 was
2.2 terawatt-hours in January Wind power will account for more than 55 percent of total electricity output in the country by 2022.
Chart 3.5 Distribution of electricity generation in Denmark in 2022 (Source: Statista)
Denmark's dedication to renewables is seen in the country's objective of having renewables cover at least 50% of total energy consumption by 2030 By 2020, the share of renewables was predicted to climb to 84%, with wind power accounting for more than half of the country's electricity This trend is expected to continue in
2023, with Denmark maintaining its position as the world leader in wind energy output
Denmark continues to make significant strides toward its objective of being fossil- fuel-independent by 2050, when renewable energy generation should equal total energy consumption Denmark has continued to build its wind power business by leveraging favorable characteristics such as frequent mild winds and shallow coastal waters The number of operating wind turbines climbed year after year, reaching 6,296 installations at the start of 2022 The Danish government has also been engaged in promoting large-scale wind power deployment The government and a broad coalition of political parties signed a supplementary agreement on tender frameworks for 6 GW of offshore wind and 3 GW at Bornholm Energy Island in
May 2023 This agreement provides a foundation for the next 9 GW offshore wind bids.
Denmark continues to guarantee that turbines are sited with consideration for the environment, economy, and society Public consultations are still an important aspect of this process Denmark offers a one-stop-shop planning process for offshore ventures to reduce the amount of red tape developers face Onshore developments benefit from the Wind Turbine Secretariat's assistance to local governments.
Wind-friendly grid investment regulations effectively distribute costs between investors and consumers Denmark has also redesigned its energy supply infrastructure to meet wind power's fluctuating nature Strong grid interconnectors ensure supply flexibility and security A healthy "power exchange" market encourages producers to adapt to changing demand The role of an independent transmission system operator in the successful integration of wind power into the national energy system cannot be overstated Denmark's attempts to achieve its long-term goal of becoming fossil-fuel independent by 2050 are well advanced, with wind power playing a key part in this transition.
Finland's climate and energy policies are motivated by two strategic goals: lowering greenhouse gas emissions and developing a bioeconomy The Finnish Climate Change Act (2015) established the Finnish Climate Panel to provide scientific advice and aims for an 80% decrease in greenhouse gas emissions by 2050 A medium-term strategy developed in 2017 establishes targets for lowering emissions in non-ETS sectors (transportation, housing, and agriculture) while emphasizing impact evaluations, cost efficiency, and stakeholder participation
The Bioeconomy Strategy intends to transform Finland into a low-carbon,sustainable society through the efficient use of renewable biomass, with a concentration on forests and bioenergy and wood-based materials Wood-based energy, primarily produced in forest industries and used in combined heat and power and district heating schemes, accounts for over a quarter of total energy consumption in Finland.
Finland's woods act as a substantial carbon sink, with annual growth far outweighing total fellings yearly net sinks from Finland's land use, land use change, and forestry sector (LULUCF) have accounted for 20-60% of the country's yearly greenhouse gas emissions
Long-term, the goal is for the energy system to be carbon neutral and heavily reliant on renewable energy sources The national energy and Climate Strategy (2016) establishes meaningful and clear actions and targets for energy and climate policy in the short term
Chart 3.6 Renewable energy in total final consumption in Finland, 2005-2021 (Source:
From 2011 to 2021, the percentage of renewable energy in total final energy consumption (TFEC) in Finland climbed consistently from 34% to 48%, primarily due to increases in bioenergy (29% to 38% of TFEC), hydro (4.7% to 6.1%), and wind (0.2% to 3.3%) (Figure 4.1) Finland's renewables contribution to TFEC was the third highest among IEA member countries in 2020 Renewables will account for 43.1% of Finland's gross final energy consumption in 2021, 39.5% of electricity generation, 52.6% of heating and cooling, and 20.5% of transportation
All EU member states, including Finland, have 2020 and 2030 targets for renewables in gross final energy consumption under the EU Renewable Energy Directive (RED), and must offer indicative trajectories for renewable energy in power production, heating and cooling, and transportation These aims and trajectories aim to help the accomplishment of EU-wide renewable energy targets of 20% by 2020 and 32% by 2030 (the 2030 target is expected to be enhanced to 45%).
Figure 3.7 Finland’s renewable energy targets, trajectories and status, 2005-2030
Finland exceeded its 2020 renewable energy targets in gross final energy consumption, heating and cooling, and transportation, but fell short in electricity generation Domestic consumption of imported oil, such as gasoline, diesel, fuel oil,jet fuel, and kerosene, has been reduced Finland's oil usage was reported at 172,000 barrels per day in 2022, a decline from prior years.
Figure 3.8 Finland's Oil Consumption from 1965 to 2022 (Source: CEIC Data)
The government has offered extensive assistance to Finland's clean technology sector Green Net Finland today manages the Cleantech Finland network, which promotes and exports Finnish breakthroughs in major technical domains such as energy efficiency and renewable energy Finland's national Program to Promote Sustainable Consumption and Production focuses in particular on innovative programs aimed at reducing climate impacts in three major sectors: housing, food, and transportation Finland has also been a trailblazer in the methodical design of climate adaption strategies.The 2005 National Climate Change Adaptation Plan has been modified and is currently guided by the National Climate Change Adaptation Plan 2023 This strategy evaluates difficulties and assigns responsibilities for proactive measures in important sectors.
Nordic international collaboration for climate initiatives
Overview of Nordic Participation in International Climate Agreements
The Nordic countries have been widely recognized for their ambitiousness in promoting equality by commitment to the Sustainable Development Goals (SDGs) established by the United Nations Development Program (UNDP) Among the 17 SDGs, the goals relating to environment preservation and climate change mitigation are prioritized at the highest political level by the Nordic members Therefore, regional collaboration aside, The Nordic Council of Ministers also actively participates in multiple global climate initiatives targeting a number of different sectors.
Voluntary climate initiatives that have more than one participant, from more than one country, are called international cooperative initiatives (ICIs) The ICIs have a key role in supporting the implementation of the Paris Agreement, as they often have many participants around the world both from public and private sectors and include actions in many sectors and fields with a large geographical coverage Of all the assessed ICIs, 75% are global in coverage, and the regional ICIs are relatively evenly spread around the globe Latin America has the least initiatives (