Norway generates more than 95% of its electricity from renewables, according to the International Energy Agency, but it seems committed to expanding its oil and gas portfolio.
What's happening?
Reuters reported in January that Norway approved 53 exploration permits for 20 companies interested in offshore oil and gas drilling in the Arctic.
"If we are to uphold a stable production in the years to come, we must explore more and invest more," Energy Minister Terje Aasland said. Even though the Scandinavian country is internally dependent on clean energy, it is the world's fourth-largest exporter of natural gas, sitting behind only the United States, Russia, and Qatar. Since Russia's invasion of Ukraine in 2022, it has become Europe's top provider.
Why is this important?
The scientific consensus is that pollution from dirty fuels is the primary reason the planet is warming at an unnatural rate, contributing to more intense extreme weather, food insecurity, displacement, and the spread of disease, among other troublesome effects.
The awarded total represented a dip from last year's 62 licenses to 24 companies, per the report, yet it was an increase from 2023's numbers. Norway also suggested an expanded Arctic exploration was on the way.
Environmental organizations such as Greenpeace, Grandparents for Climate, and Extinction Rebellion were alarmed by the country's continued commitment to dirty fuels, sparking protests outside the hotel where Aasland made the announcement.
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"We have a moral responsibility to act," climate advocate Greta Thunberg, who joined the protest, told public broadcaster NRK, according to Reuters.
What's being done about this?
One key factor driving the dirty fuel investment is a desire for economic prosperity and security. In Norway, whose grid mostly relies on hydropower thanks to its abundant natural resources, the oil industry is expected to make up 20.5% of the GDP in 2025, per Statista.
To help offset this, the country has adopted a "polluter-pays principle," according to the International Energy Agency, becoming one of the first nations to implement a carbon tax in 1991. Now, around 85% of its domestic planet-warming pollution is subject to a CO2 tax, covered by the European Union Emissions Trading System, or both.
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For sure 👍 In many countries, energy independence is a primary concern, as it can help lower electricity costs. However, renewable power is typically more affordable and has less volatile pricing. To that end, the EU has boosted its share of clean power.
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For instance, according to Ember, wind and solar outpaced dirty fuel consumption in the first half of 2024.
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