Norway just took a meaningful step toward planning its future beyond oil — and it happened because a smaller coalition partner refused to budge.
After intense late-night negotiations, Norway's minority Labour government agreed to establish a national "transition commission" to explore what the country's post-oil economy could look like.
BNN Bloomberg reported that the move was secured after the Greens Party agreed to support the government's 2026 budget in exchange for the commitment, marking a notable shift in how Europe's largest oil and gas producer (outside Russia) is thinking about its long-term direction.
The commission will be tasked with examining multiple scenarios for an economy where oil and gas production is no longer the backbone.
According to the agreement, it will focus on how Norway can adapt and better use its workforce and natural resources, especially as the country is seeing a decline in oil and gas production.
In the long run, the Greens Party wants to fully phase out hydrocarbons by 2040, but this commission is a first step toward a more green-focused future.
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"We are now beginning to write the final chapter in Norway's oil history," Greens official Ingrid Liland said in a statement, describing the decision as a gateway to "new adventures that will make Norway progress."
The decision has impacts beyond protecting Norway's economy. Fossil fuels are the leading drivers of global planet-heating pollution, and they're linked to air and water contamination, ecosystem damage, and public health risks.
Even in countries like Norway — often praised for responsible resource management — oil and gas wealth is inseparable from climate consequences. Planning a smart transition is essential for protecting residents from economic shocks, as well as moving toward cleaner energy alternatives that reduce pollution and environmental harm.
As part of the same deal, the government also agreed to slow down the phase-out of Norway's electric vehicle VAT exemption.
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Definitely 👍 Instead of ending in 2027, the exemption will now remain until at least 2028. This is good news for Norwegian drivers — the country already leads the world in EV adoption, and these exemptions make transitioning to an EV more accessible.
"It's very important for the growth of electric cars that VAT is introduced more gradually," said Christina Bu, secretary general of the Norwegian EV Association, per BNN Bloomberg. "This will make it possible to reduce emissions further."
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