Wind of change: A scandinavian perspective on energy transition and the 'greenification' of the oil and gas sector

Abstract

The Scandinavian region-Denmark, Norway and Sweden-is a world-leading example of a rapid energy transition due to high rates of electrification. There are high ambitions to be fossil free' by 2050 and to push towards a renewable energy-based society. However, despite these plans and their ongoing success in reducing emissions, Scandinavia is not a fossil-free area; oil and gas remain the largest sources of energy in the region. Denmark and Norway are fossil fuel producers and exporters, with hydrocarbons being by far the largest source of income for Norway. In this paper, we discuss the energy transition in Scandinavia and how hydrocarbons and renewable sectors are interrelated in practice and energy governance and regulation. We show how these countries, and the Nordics in general, set a leading example in energy decarbonization with high electrification rates and blaze the trail in energy transition within the oil and gas industry, with Norway being the pioneer. Our contribution shows how Norway, due to a combination of its climate ambitions, including its aim to reduce greenhouse gas emissions, hydrocarbon regulation and economic dependence on petroleum, is leading the greenification efforts in the oil and gas industry, not by phasing it out but by making it more sustainable, at least as far as the extraction of oil and gas is concerned. Paradoxically, Scandinavia and Norway are at the forefront of the world's energy transition thanks to a large share of renewable energy consumption. However, oil and gas extraction continues with the aim of not stopping it but making it greener.