KEY MESSAGE 5
Emissions reductions are technically feasible but politically challenging
The Nordic countries have committed to ambitious climate targets, with Finland aiming to reach carbon neutrality by 2035, Iceland by 2040 and Sweden by 2045. Denmark is working towards achieving climate neutrality by 2050 and Norway intends to become a low-emission society by the same year. Reaching these goals requires deep decarbonisation across several high-emission sectors, each with distinct challenges and opportunities. These sectors include energy production and transport. Industrial processes, such as steel in Sweden and aluminium in Iceland, also contribute significantly to emissions. Agriculture, particularly in Denmark, is a major emitter due to livestock and fertiliser use (Figure 3).
The Nordic countries have committed to ambitious climate targets, with Finland aiming to reach carbon neutrality by 2035, Iceland by 2040 and Sweden by 2045. Denmark is working towards achieving climate neutrality by 2050 and Norway intends to become a low-emission society by the same year. Reaching these goals requires deep decarbonisation across several high-emission sectors, each with distinct challenges and opportunities. These sectors include energy production and transport. Industrial processes, such as steel in Sweden and aluminium in Iceland, also contribute significantly to emissions. Agriculture, particularly in Denmark, is a major emitter due to livestock and fertiliser use (Figure 3).
The Nordic countries have developed comprehensive climate action plans and policy instruments to reduce emissions across sectors. These include scaling up renewable energy, electrifying transport systems, improving industrial efficiency and transforming agricultural practices through regulations, incentives, innovation and infrastructure investment.
From a technical perspective, the pathways to decarbonisation are often well understood. For example, Nordregio’s research shows that ambitious transport policies, such as promoting electric vehicle adoption and increasing biofuel use, can make an important contribution to lowering emissions at a moderate macroeconomic cost and with minimal structural disruption. Similarly, phasing out coal-fired electricity and implementing targeted agricultural measures in Denmark, such as a carbon tax on emissions, afforestation subsidies and support for emission-reducing technologies, can substantially reduce emissions at a limited macroeconomic cost.
Figure 3. Greenhouse gas emissions by source sector in the Nordic Region, in million tonnes (1990-2023)
Note: The figure includes emissions from Denmark, Finland, Iceland, Norway, Sweden and Åland. Emissions from Greenland and the Faroe Islands are not included in the dataset. Emission data exclude memo items. (Source: Eurostat)
Note: The figure includes emissions from Denmark, Finland, Iceland, Norway, Sweden and Åland. Emissions from Greenland and the Faroe Islands are not included in the dataset. Emission data exclude memo items. (Source: Eurostat)
Figure 3. Greenhouse gas emissions by source sector in the Nordic Region, in million tonnes (1990-2023)
Note: The figure includes emissions from Denmark, Finland, Iceland, Norway, Sweden and Åland. Emissions from Greenland and the Faroe Islands are not included in the dataset. Emission data exclude memo items. (Source: Eurostat)
Note: The figure includes emissions from Denmark, Finland, Iceland, Norway, Sweden and Åland. Emissions from Greenland and the Faroe Islands are not included in the dataset. Emission data exclude memo items. (Source: Eurostat)
The Nordic countries have developed comprehensive climate action plans and policy instruments to reduce emissions across sectors. These include scaling up renewable energy, electrifying transport systems, improving industrial efficiency and transforming agricultural practices through regulations, incentives, innovation and infrastructure investment.
From a technical perspective, the pathways to decarbonisation are often well understood. For example, Nordregio’s research shows that ambitious transport policies, such as promoting electric vehicle adoption and increasing biofuel use, can make an important contribution to lowering emissions at a moderate macroeconomic cost and with minimal structural disruption. Similarly, phasing out coal-fired electricity and implementing targeted agricultural measures in Denmark, such as a carbon tax on emissions, afforestation subsidies and support for emission-reducing technologies, can substantially reduce emissions at a limited macroeconomic cost.
The main challenge, therefore, does not lie in the availability of solutions but in ensuring political commitment and public acceptance. Political coalitions may struggle to pass ambitious measures, especially when facing opposition from affected industries or regions. Uncertainties around technological development, cost trajectories and emission forecasts may further complicate decision-making.
Norway’s carbon capture and storage (CCS) project illustrates both the promise and complexity of this transition. While CCS is technically and politically feasible, questions remain regarding its long-term cost efficiency, scalability and broader uptake. Similarly, agricultural reforms in Denmark and forest management in Finland may face regional resistance despite their potential climate benefits.
Recommendation
Build broad coalitions, communicate clearly, and design policies perceived as fair and inclusive to overcome political challenges.
Read more:
Dixon, P., Rimmer, M., Wittwer, G., Honkatukia, J., Tapia, C. & Sánchez Gassen, N. (2023). What impact do climate change policies have on Nordic economies, industries and households? Nordregio Report 2023:10, Stockholm: Nordregio. DOI: 10.6027/R2023:101403-2503.
Flam, H. & Sánchez Gassen, N. (2024). Regional economic effects of the green transition in the Nordic Region. Nordregio Report 2024:25, Stockholm: Nordregio. DOI: 10.6027/R2024:25.1403-2503.