Update of Norway's Nationally Determined Contribution

1 In Decision No 269/2019 of 25 October the European Union, Iceland and Norway formally agreed to extend the climate cooperation for the period 2021 – 2030 by amending Protocol 31 of the EEA Agreement, https://ec.europa.eu/clima/sites/clima/files/news/20191025.pdf

2 The climate cooperation includes the following EU climate frameworks: (1) Effort Sharing Regulation included in Protocol 31 of the EEA Agreement for the period 2021 – 2030 (Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013) (2) Regulation on greenhouse gas emissions and removals from land use, land use change and forestry included in Protocol 31 of the EEA Agreement for the period 2021 – 2030 (Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry). (3) Emission Trading System incorporated in Annex XX of the EEA Agreement (Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC) 2 Annex Nationally Determined Contribution (NDC) of Norway for the timeframe 2021-2030 Updated as of 7 February 2020 Norway is committed to a target by at least 50% and towards 55% reduction in greenhouse gas emission compared to 1990 levels. Information necessary for clarity, transparency and understanding (ICTU) of Norway's NDC Para Guidance in decision 4/CMA.1 ICTU guidance as applicable to Norway's NDC

1 Quantifiable information on the reference point (including, as appropriate, a base year): (a) Reference year(s), Base year: 1990 base year(s), reference period(s) or other starting point(s); (b) Quantifiable information on the The reference indicator will be quantified based on national total greenhouse gas (GHG) reference indicators, their values in the emissions, except LULUCF in the base year 1990 reported in Norway's National Inventory reference year(s), base year(s), reference Report (NIR). The base year emission level was about 52 Mt CO2-equivalents. period(s) or other starting point(s), and, as applicable, in the target year; (c) For strategies, plans and actions referred Not applicable. to in Article 4, paragraph 6, of the Paris Agreement, or polices and measures as components of nationally determined contributions where paragraph 1(b) above is not applicable, Parties to provide other relevant information; 3 (d) Target relative to the reference indicator, At least 50% and towards 55% reduction in greenhouse gas emission compared to 1990 expressed numerically, for example in levels. percentage or amount of reduction; (e) Information on sources of data used in The reference indicator will be quantified based on national total GHG emissions in 1990 quantifying the reference point(s); reported in Norway's NIR. (f) Information on the circumstances under The national total GHG emissions in 1990 may be updated and recalculated due to which the Party may update the values continuous methodological improvements. Information on updates made will be included in of the reference indicators. the Biennial Transparency Report.

2 Time frames and/or periods for implementation: (a) Time frame and/or period for From 1st January 2021- 31st December 2030 implementation, including start and end date, consistent with any further relevant decision adopted by the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA); (b) Whether it is a single-year or multi-year Single-year target in 2030. target, as applicable. 4

3 Scope and coverage: (a) General description of the target; Economy-wide, emission reductions by at least 50% towards 55% in 2030 compared to base year emissions. The target covers all sectors and greenhouse gases. Norway seeks to fulfil the enhanced ambition through the climate cooperation with the European Union. In the event that Norway's enhanced nationally determined contribution goes beyond the target set in the updated nationally determined contribution of the European Union, Norway intends to use voluntary cooperation under Article 6 of the Paris Agreement to fulfil the part that goes beyond what is fulfilled through the climate cooperation with the European Union. Consent of the Parliament will be required. (b) Sectors, gases, categories and pools Information will be provided in Norway's NIR that will be consistent with the IPCC covered by the nationally determined guidelines. contribution, including, as applicable, consistent with Intergovernmental Panel Sectors on Climate Change (IPCC) guidelines; Energy, industrial processes and product use, agriculture, land-use, land-use change and forestry, and waste. Gases Carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3). For the land-use, land-use change and forestry sector, emissions and removals the following reporting categories are included: forest land, cropland, grassland, and wetland (wetland remaining wetland only from 2026), including land use changes between the categories, and between these categories and settlements and other land. The five carbon pools above-ground biomass, below-ground biomass, litter, dead wood and soil organic matters are included. In addition, the carbon pool harvested wood products is included. 5 (c) How the Party has taken into Norway's NIR chapter 1.7 describes the sources considered insignificant and reported as not consideration paragraph 31(c) and (d) of estimated. The NIR provides justifications for exclusion in terms of the likely level of decision 1/CP.21; emissions and how these are in line with the thresholds specified in decision 24/CP.19. A similar approach, consistent with decision 18/CMA.1 will be used for reporting under the Paris Agreement. (d) Mitigation co-benefits resulting from Not applicable. Parties’ adaptation actions and/or economic diversification plans, including description of specific projects, measures and initiatives of Parties’ adaptation actions and/or economic diversification plans.

4 Planning processes: (a) Information on the planning processes The emission reduction target of at least 40 per cent by 2030 was approved by the that the Party undertook to prepare its Parliament in 2015. Further, the target was established by law in the Climate Change Act nationally determined contribution and, adopted by the Parliament in June 2017. In October 2019 the EU, Iceland and Norway if available, on the Party’s formally agreed to cooperate to fulfil their respective emission reduction targets of at least implementation plans, including, as 40 per cent by 2030. appropriate: The strategy for implementation was approved by the Parliament 26th April 2018. The Government is further developing policies and measures to fulfil the target. For the enhanced target the Government has communicated to the Parliament through various documents that it intends to update and enhance its climate target for 2030. Economic measures like CO2- taxes and emission trading are central to Norwegian climate policy. Support for the development and adoption of low emissions technologies, including carbon capture and storage technologies and electric vehicles as well as policies for renewable energy are also important in Norwegian climate policy. More information on policies and measures in place are described in chapter 4 of Norway's fourth Biennial Report. 6 (i) Domestic institutional arrangements, Institutional arrangements: the emission reduction target for 2030 was established through public participation and engagement interministerial processes. with local communities and indigenous peoples, in a gender-responsive manner; Through the climate cooperation with the European Union and Iceland, Norway will have specific legislation for the period 2021-2030 covering all emissions and sectors: 1. The EU Emission Trading System (ETS) regulates emissions from industrial plants, power plants, the petroleum industry and commercial aviation within the European Economic Area. About half of Norwegian greenhouse gas emissions are covered by the ETS. Norway has been a part of the ETS since 2008 on the same terms as EU Member States. 2. The Effort Sharing Regulation (ESR) regulates emissions from transport, agriculture, buildings and waste management and emissions from industry and petroleum not covered by the ETS. The Effort Sharing Regulation sets binding national targets. Norway's national target is to reduce emissions in the non-ETS-sectors by 40 per cent in 2030 compared to 2005.The target can be fulfilled through domestic emission reductions and/or by use of flexible mechanisms within the EU framework. 3. The Land Use, Land-Use Change and Forestry (LULUCF) Regulation regulates emissions and removals for the land use, land use change and forestry sector. As for the EU Member States, Norway's commitment is to ensure that emissions do not exceed removals in this sector. The Ministry of Climate and Environment has the overarching cross-sectoral responsibility for coordination and implementation. The Ministry of Finance is responsible for the tax schemes and the other ministries are responsible for policies in their respective sectors. Further details on institutional arrangements are found in Norway's 7th National Communication, Chapter 4.1.3. The Environmental Information Act, implementing the Aarhus Convention, establish public participation in decision making processes relevant for the environment. Consequently, the 7 Climate Change Act was on a public hearing including all stakeholders. For consultations with indigenous people, Sami People, procedures for consultation processes between the central government and the Sámediggi, established in 2005, constitute a crucial framework for ensuring Sami rights under international law to participate in processes that may affect them. (ii) Contextual matters, including, inter alia, as appropriate: a. National circumstances, such as a. Information on national circumstances can be found in Norway's 7th National geography, climate, economy, Communication to the UNFCCC, chapter 2. sustainable development and poverty eradication; b. Best practices and experience related to b. Norway has a process for involving the Parliament in developing the target and the preparation of the nationally implementing policies. According to the Climate Change Act the Government shall determined contribution; each year submit to the Parliament updated information on status and progress in achieving the climate targets under the law. This ensures broad political ownership of the target and transparency while progressing towards the achievement of the target. c. Other contextual aspirations and c. Just transition: Norway has an extensive system for social protection and priorities acknowledged when joining institutionalised tripartite dialogue between the government, trade unions and labour the Paris Agreement organisations already in the 1960ties. This serves, amongst others, to stabilize the economy and work life in periods of transition. It is a priority for the Government to facilitate the creation of profitable green jobs through pricing, public procurement, regulations and measures that supports technology development. Human Rights: Human rights are enshrined in the The Norwegian Constitution. The Human Rights Act establishes the main conventions on human rights as Norwegian law. This act prevail over other Norwegian legislation in case of conflicts between norms. 8 Indigenous People: ref above 4 (a) (i) Food security: There is a scarcity of agricultural land in Norway especially suitable for arable crops. Norway's role in global food security in the context of climate change is to adapt to a changing climate, manage and use these resources sustainably, to secure food supplies while emissions of greenhouse gases are reduced. Gender equality: In 2018, a new and comprehensive Equality and Anti-Discrimination Act entered into force. The Act's purpose is to promote gender equality. The Act provides protection against discrimination on the basis of gender, pregnancy, leave in connection with birth or adoption and care responsibilities. Women and men are to be given equal opportunities in education and work, and in their cultural and professional development. General and sector specific legislation, support, taxation and other measures are in place to protect and avoid, reduce or manage adverse impacts on climate and environment and provide for broad access to information participation and justice. Civil society is broadly and actively engaged. (b) Specific information applicable to Not applicable Parties, including regional economic integration organizations and their member States, that have reached an agreement to act jointly under Article 4, paragraph 2, of the Paris Agreement, including the Parties that agreed to act jointly and the terms of the agreement, in accordance with Article 4, paragraphs 16–18, of the Paris Agreement; 9 (c) How the Party’s preparation of its Norway participated in the Talanoa Dialogue in the context of the Paris Decision 1/CP.21 nationally determined contribution has during 2018. In Norway two Talanoa Dialogues where held. One between the Minister for been informed by the outcomes of the Climate and Environment and mayors (municipalities) and one initiated by Norwegian global stocktake, in accordance with environmental organisations and the Parliament. Norway's climate targets and polices are Article 4, paragraph 9, of the Paris developed in the context of best available science and hence the IPCC Special Report on 1,5 Agreement; degrees, has been central to the assessment of the nationally determined contribution. (d) Each Party with a nationally determined Not applicable contribution under Article 4 of the Paris Agreement that consists of adaptation action and/or economic diversification plans resulting in mitigation co-benefits consistent with Article 4, paragraph 7, of the Paris Agreement to submit information on: (i) How the economic and social consequences of response measures have been considered in developing the nationally determined contribution; (ii) Specific projects, measures and activities to be implemented to contribute to mitigation co-benefits, including information on adaptation plans that also yield mitigation co- benefits, which may cover, but are not limited to, key sectors, such as energy, resources, water resources, coastal resources, human settlements and urban planning, agriculture and forestry; and economic diversification actions, which may cover, but are not limited to, sectors 10 such as manufacturing and industry, energy and mining, transport and communication, construction, tourism, real estate, agriculture and fisheries.

5 Assumptions and methodological approaches, including those for estimating and accounting for anthropogenic greenhouse gas emissions and, as appropriate, removals: (a) Assumptions and methodological Norway will at the latest by 31 December 2024 report a GHG inventory in accordance with approaches used for accounting for 18/CMA.1 and report on progress towards its nationally determined contribution. For anthropogenic greenhouse gas emissions accounting relevant information, Norway will use the accounting guidance in 4/CMA.1. For and removals corresponding to the IPCC methodologies and metrics, see 5 (d). Party’s nationally determined contribution, consistent with decision Final accounting towards the target, that will take place in 2032, may depend on further 1/CP.21, paragraph 31, and accounting arrangements in Norway's cooperation with the European Union and Iceland. Any use of guidance adopted by the CMA; internationally transferred mitigation outcomes within that framework will be included in Norway's accounting, consistent with the approach used by the EU and Iceland. (b) Assumptions and methodological Not applicable. approaches used for accounting for the implementation of policies and measures or strategies in the nationally determined contribution; 11 (c) If applicable, information on how the Norway's current GHG inventory is in accordance with decision 24/CP.19 and hence the Party will take into account existing IPCC 2006 Guidelines, the 2013 Revised Supplementary Methods and Good Practice methods and guidance under the Guidance Arising from the Kyoto Protocol (IPCC 2013 KP Supplement) and the 2013 Convention to account for Supplement to the 2006 IPCC Guidelines for the National Greenhouse Gas Inventories: anthropogenic emissions and removals, Wetlands (IPCC 2013 Wetlands Supplement). in accordance with Article 4, paragraph 14, of the Paris Agreement, as appropriate; (d) IPCC methodologies and metrics used IPCC 2006 guidelines, IPCC 2013 KP Supplement and parts of IPCC 2013 Wetlands for estimating anthropogenic greenhouse Supplement will be used for estimating GHG emissions and removals. Global warming gas emissions and removals; potentials (GWP) for a 100 year time horizon from the IPCCs fifth Assessment Report will be used to calculate CO2 equivalents. (e) Sector-, category- or activity-specific assumptions, methodologies and approaches consistent with IPCC guidance, as appropriate, including, as applicable: (i) Approach to addressing emissions and Emissions and subsequent removals from natural disturbances on afforested land and subsequent removals from natural managed forest land may be excluded from the accounting if the emissions from the natural disturbances on managed lands; disturbance exceed the average emissions caused by natural disturbances in the period 2001- 2020, excluding outliers (background level), if calculated as in accordance with Art 10 and

Annex VI of Regulation (EU) 2018/841. (ii) Approach used to account for emissions Norway uses the production approach to account for emissions and removals from harvested and removals from harvested wood wood products, as defined in the IPCC Guidelines. This is in accordance with Art. 9 and products; Annex V of Regulation (EU) 2018/841. (iii) Approach used to address the effects of Within the climate cooperation with the European Union and Iceland emissions and age-class structure in forests; removals in managed forests in the period 2021 – 2030 will be accounted for as the deviation from a projected forward-looking forest reference level, with regards to dynamic age-related forests characteristics, as in accordance with Art. 8 and Annex IV of Regulation (EU) 2018/841. When the European Union has updated its nationally determined contribution and its climate framework, Norway may provide further information to facilitate clarity, transparency and understanding. 12 (f) Other assumptions and methodological approaches used for understanding the nationally determined contribution and, if applicable, estimating corresponding emissions and removals, including: (i) How the reference indicators, baseline(s) Within the climate cooperation with the European Union and Iceland emissions and and/or reference level(s), including, removals from the land sector will be accounted for based on specific accounting rules for where applicable, sector-, category- or the different land categories in regulation (EU) 2018/841, Art 6-8 and Annex IV: activity-specific reference levels, are constructed, including, for example, key - Zero is the baseline for afforested land and deforested land (gross-net accounting) parameters, assumptions, definitions, - The average emissions between 2005-2009 is the baseline for managed cropland, methodologies, data sources and models managed grassland and managed wetlands (net-net accounting) used; - A forest reference level based on the continuation of sustainable forest management practice in the period 2000-2009 is the baseline for managed forest land. When the European Union has updated its nationally determined contribution and its climate framework, Norway may provide further information to facilitate clarity, transparency and understanding. (ii) For Parties with nationally determined Not applicable. contributions that contain non greenhouse-gas components, information on assumptions and methodological approaches used in relation to those components, as applicable; (iii) For climate forcers included in Not applicable. nationally determined contributions not covered by IPCC guidelines, information on how the climate forcers are estimated; (iv) Further technical information, as Not applicable. necessary; 13 (g) The intention to use voluntary As explained in para 3 (a) Norway will fulfil the emission reduction target of at least 40 per cooperation under Article 6 of the Paris cent emission reduction in cooperation with the European Union and Iceland. The current Agreement, if applicable. EU climate framework referred to in 4 a (i) does not open for the use of internationally transferred mitigation outcomes from outside the EU/EEA. Final accounting towards the target may depend on any further arrangements in Norway's cooperation with the European Union and Iceland. Norway seeks to fulfil the enhanced ambition of least 50 per cent and towards 55 per cent through the climate cooperation with the European Union. In the event that Norway's enhanced nationally determined contribution goes beyond the target set in the updated nationally determined contribution of the European Union, Norway intends to use voluntary cooperation under Article 6 of the Paris Agreement to fulfil the part that goes beyond what is fulfilled through the climate cooperation with the European Union. Norway will report on progress towards its nationally determined contribution through the transparency framework under the Paris Agreement, and account for its cooperation with the European Union in a manner consistent with the guidance adopted by CMA and further guidance agreed by the CMA. 6 How the Party considers that its nationally determined contribution is fair and ambitious in the light of its national circumstances: (a) How the Party considers that its Norway's approach to consider fairness and ambition is to assess how its nationally nationally determined contribution is determine contribution contributes to meeting the global long-term goal of the Paris fair and ambitious in the light of its Agreement. national circumstances; The scientific basis for such an assessment is the recent IPCC reports. The 5th Assessment Report shows that scenarios that are likely to limit global warming below 2°C require that global emissions must be reduced by 40 to 70% by 2050 compared to 2010 levels. The IPCC special report on the impacts of global warming of 1,5°C shows pathways that limit global warming to 1.5°C with no or limited overshoot. They describe a 40 - 50 % reduction in net anthropogenic GHG emissions by 2030 compared to 2010 levels, and net anthropogenic CO2 14 emissions reaching net zero around 2050 (2045 – 2055) accompanied by the reductions in non- CO2 emissions. Norway's nationally determined contribution is in line with the emissions pathways towards 2050 and onwards that correspond to keeping global warming in line with the global long- term goal of the Paris Agreement. (b) Fairness considerations, including Norway regards its nationally determined contribution to represent its fair share of the reflecting on equity; efforts to achieve the global long-term goal of the Paris Agreement. (c) How the Party has addressed Article 4, Norway's updated and strengthened nationally determined contribution represents a paragraph 3, of the Paris Agreement; progression beyond its previously communicated nationally determined contribution, as the emission reductions are enhanced from at least 40 per cent to at least 50 per cent towards 55 per cent. It is an ambitious target for Norway to achieve by 2030. Norway has considered how to increase ambition, and Norway believes the strongest way of doing this is to do on a European basis, together with the European Union. The achievement of the target is dependent on a broad set of mitigation measures. The implementation of the enhanced NDC for 2030 will be an important part of Norway's process of transforming to a low-emission society by 2050. (d) How the Party has addressed Article 4, Not applicable. paragraph 4, of the Paris Agreement (e) How the Party has addressed Article 4, Not applicable. paragraph 6, of the Paris Agreement. 7 How the nationally determined contribution contributes towards achieving the objective of the Convention as set out in its Article 2: (a) How the nationally determined Norway regards the long-term target of the Paris Agreement to be in line with Article 2 of contribution contributes towards the Convention. The answer to this question is therefore explained under 6a. achieving the objective of the Convention as set out in its Article 2; 15 (b) How the nationally determined See 6a and 7a. contribution contributes towards Article 2, paragraph 1(a), and Article 4, paragraph 1, of the Paris Agreement. 16