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ENVIRONMENT

Norway plans to triple carbon tax in new climate measures

Norway's government on Friday unveiled a range of measures aimed at achieving the country's climate objectives, including a more than tripling of the country's carbon tax.

Norway plans to triple carbon tax in new climate measures
Photo: Bit Cloud on Unsplash

Norway, the biggest producer of oil in Western Europe, has said it aims to reduce its greenhouse gas emissions by 50 to 55 percent by 2030.

By 2050, the goal is a reduction of 90 to 95 percent.

“Man-made climate change has serious consequences for humans, animals and nature around the world,” Prime Minister Erna Solberg told a press conference.

“Norway wants to do its part to curb climate change,” she added.

Among the measures presented, the government proposed a requirement for public services to only buy “zero emission” cars and vans from 2022 onwards.

The same will apply for public auctions on ferry services from 2023 and urban buses from 2025.

The government also wants to promote biofuels and more than triple its carbon tax from today's 590 Norwegian kroner per tonne to 2,000 kroner.

However, as the sitting government is in the minority in parliament, it may need to adjust some of the proposed measures to pass parliament.

Norway has already invested heavily in carbon capture and storage (CCS) technology and the tax hike is believed to further encourage the technology.

“It is extremely positive that the government wants to increase the CO2 tax and introduce emissions budgets,” the Norwegian branch of environmental group Friends of the Earth said in a post to Twitter.

“But they are avoiding the big and difficult questions about oil production, motorway construction, airport expansion and energy efficiency,” it added.

Norway, which is powered primarily by hydroelectric dams, is a pioneer when it comes to electric transport.

Last year it became the first country where over half of new cars registered were electric, putting on track for its 2025 goal of having all new cars being “zero-emission.”

But its leaders are also often accused of hypocrisy as they continue to grant new licenses for oil exploration, including in the fragile Arctic waters of the Barents Sea.

READ ALSO: Norway reaches 50 percent electric in 2020 new car sales 

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ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

READ ALSO: 

The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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