Norway’s large-scale oil and gas production along with its metals production makes the industry sector a prominent source of emissions. In 2019, these sectors constituted over half of total GHG emissions, including fugitive emissions from fuels.17 The world’s eighth largest producer of aluminium and a significant producer of steel, Norway’s emissions from these sectors alone made up around 17% of industry emissions in 2019, while oil and gas production including fugitive emissions constitutes over half. Energy-related emissions made up two-thirds of industry emissions in 2019, compared to one third for process emissions. This has changed significantly since 1990, when process emissions made up more than half, with the shift due primarily to the elimination of F-gas emissions from aluminium and magnesium production, and a doubling in oil and gas output.17,20
To align with modelled 1.5°C pathways, Norway would need to reduce direct CO₂ emissions from industry by at least 62% below 2019 levels by 2030, a steeper reduction than needed for total emissions. While some models already reach net zero emissions by around 2045, others would reach a fully decarbonised industry sector by 2050.29 The relatively high electrification level of Norway’s industry sector would need to continue to climb, reaching a roughly 90% electrification rate by 2050.
The Norwegian government recently reiterated its support for further developing the oil and gas sector despite the emissions intensive nature of its operations, a key obstacle to achieve decarbonisation of the industry sector.21 A strong reliance on the ability to commercialise and widely deploy carbon capture, usage, and storage (CCUS) technology underpins Norway’s plans to decarbonise its oil and gas sector. However, CCUS technologies remain prohibitively expensive and significant questions remain as to its commercial viability. Norway is also planning a CCUS-heavy approach for developing its hydrogen production sector, already entering into a review together with Germany to explore supplying them with hydrogen.22
Norwayʼs energy mix in the industry sector
petajoule per year
- Natural gas
- Coal
- Oil and e-fuels
- Biofuel
- Biogas
- Biomass
- Hydrogen
- Electricity
- Heat
Norwayʼs industry sector direct CO₂ emissions (of energy demand)
MtCO₂/yr
- Historical emissions
- SSP1 High CDR reliance
- SSP1 Low CDR reliance
- High energy demand - Low CDR reliance
- Low energy demand
Norwayʼs GHG emissions from industrial processes
MtCO₂e/yr
- SSP1 Low CDR reliance
- SSP1 High CDR reliance
- Low energy demand
- High energy demand - Low CDR reliance
- Historical emissions
1.5°C compatible industry sector benchmarks
Direct CO₂ emissions, direct electrification rates, and combined shares of electricity, hydrogen and biomass from illustrative 1.5°C pathways for Norway
Indicator | 2019 | 2030 | 2040 | 2050 | Decarbonised industry sector by |
|---|---|---|---|---|---|
Direct CO₂ emissions MtCO₂/yr | 19 | 4 to 7 | 2 to 3 | 0 to 1 | 2045 |
Relative to reference year in % | −79 to −62% | −89 to −84% | −98 to −94% |
Indicator | 2019 | 2030 | 2040 | 2050 |
|---|---|---|---|---|
Share of electricity Percent | 65 | 65 to 73 | 79 to 85 | 87 to 91 |
Share of electricity, hydrogren and biomass Percent | 71 | 76 to 78 | 88 | 93 to 95 |