Speech during the Clean Energy Ministerial

Minister of Petroleum an Energy, Mr Terje Riis-Johansens speech at the Clean Energy Ministerial in Washington, 19.20.07.2010.

The speech was based on the following:

First of all, I would like to commend the United States and Secretary Chu for their efforts. In my opinion, the Clean Energy Ministerial is a very timely event and I am thankful for the invitation to Norway to participate in this process.

The energy sector is responsible for 65 per cent of the world’s greenhouse-gas emissions. This ministerial provides us with an opportunity to share ideas and experiences that will guide us in our work to minimise these emissions.

Every country has their set of advantages and challenges defining the ground conditions as to how energy policy can be shaped in that country.

But, I want to make three points which I think are common to us all:

1.     We ought to pay the real cost of energy; this entails a much higher price of energy than most pay today

2.     Governments must be willing to take an active part in funding new and innovative technologies

3.     We must put in place frameworks and regulations which promote the diffusion of clean energy solutions

First, in order to pay the real price of energy, the threats and effects of climate change must be incorporated.

A price on emissions equals a more genuine cost of energy

This will stimulate industry and individuals to save energy and invest in clean energy technologies and push the world towards a more sustainable path.

In Norway, we introduced a CO2-tax in 1991. This led, amongst others, to our first CCS-project in 1996. Today, about 70 percent of our greenhouse gas emissions are subject to a tax or covered by the European emission trading scheme.

Second, as the IEA reports we have received for this ministerial have stated, as well as numerous other studies: new clean energy technologies need to be developed and commercialised.

More public funds should be allocated to technology development. We have a responsibility to support and accelerate this development.

In my experience, government support works best if we work together with industry and other stakeholders.

That is why our support schemes for research, development and demonstration only offer funding on the condition that private stakeholders contribute both financially and with technical expertise.

An example from Norway is the Government partnering up with Statoil, Shell and Sasol to create a CO2 technology centre. At this technology centre, which is almost halfway in its construction, we will capture CO2 from two different emission sources and two capture technologies.

This is just one example. Public R&D funding in Norway has been strengthened considerably, having been tripled from 2007 to 2010. We are investing in technologies across the board, from renewable energy production to energy efficiency.

Third, we need to create legal frameworks which help remove potential barriers and enable a more rapid deployment of clean energy solutions.

I ask myself if this is not a tool we can utilise to a greater extent than we are currently doing.

I have already mentioned the CO2-tax and the emissions trading system as an illustration of tax-based legislation. But let me mention another example: Oil-fired boilers account for a significant share of Norwegian CO2-emissions. We have now banned the use of oil-fired boilers in new buildings, and we are planning to introduce legislation ensuring that existing installations be phased out. This will ensure a faster transition to cleaner sources of heating.

The Clean Energy Ministerial is the ideal setting for how we should go forward; I have mentioned some examples of the tools we have in the governmental toolbox. The initiatives to be announced tomorrow aim to put all these to use. And that is an important reason why Norway supports this work.