Introductory speech at the launche of ICAP (International Carbon Action Partnership), Lisbon, 29 October.

Excellencies, distinguished ladies and gentlemen.

I congratulate you with this timely initiative.

Norway’s announcement that it is joining the European Emissions Trading system is a particularly important one. Both officials from the EU and Norway have committed to the process for two years and finally last week Norway could announce the agreement to join the European carbon emission marked.

As the first country outside the European Union to commit to this, we have to set a good example.

“An ambitious approach” is how the European Commission described it – which is very true.
We have to pay a political price for this decision… but the more countries joining; the easier it becomes to take such bold steps in the future.
As we grow, it will be harder for the critics to argue that industry can get more favourable conditions in other countries and markets.

It all comes down to environmental integrity.

The CAP – to use the terminology of this international initiative – is the most important variable here as we expand the system. The goal is to put a high price on CO2 and create a strong incentive to reduce emissions.
We have to make sure that we allocate significantly lower amount of allowences to create the opportunity for a viable carbon exchange mechanism.

That is an issue we will watch carefully.

We will also argue the case for new sectors and other emission sources to include in the CAP in order to develop a more thorough system which covers the largest possible fraction of total emissions. As an example- in line with these goals we have decided to include the fertilising industry in our carbon emission scheme.

One separate - but particularly important issue – I would like to mention is that we have decided to auction the bulk of the allowances - rather than simply donate them for free.
There are many advantages of doing this, but let me mention just one here today:

It becomes politically much easier to be tough on the CAP when it does not have a direct effect on industry’s cash flow.

On behalf of Norway, I would like to pledge a commitment to ensure this initiative a secure start – and a prosperous future. To make this day and the start of this initiative a landmark in our common effort to reduce the emission of greenhouse gasses.