Tag Archives: oil fund

Oil from the North Sea gives Norway a lot of money, but also a big responsibility to mitigate climate change. Photo: Flickr/polandeze

We need more money to protect against climate change

Oil from the North Sea gives Norway a lot of money, but also a big responsibility to mitigate climate change. Photo: Flickr/polandeze

Today, the Norwegian national budget will be presented. While there will be a lot of money to support carbon capture and storage, as well as a lot of money for the worlds forests. However, the budget will also show that we are not using enough on climate.

In 2010, Norway exported 77,954,000 tons of crude oil, the equivalent of approximately 245 million tons of CO2. A CO2-quota in the EU market has had a price between 12 and 30 euros for ton. This means that the CO2 cost of the Norwegian oil exports is between three billion and 7.3 billion euros. This corresponds with the current exchange rate between 22 and 54 billion Norwegian kroner.

In 2010, the Norwegian government’s transfer to the oilfund was 181 billion Norwegian kroner. This means that we ought to, just to compensate for the CO2 from this oil, (I have not included gas, condensate and NGL export) should use between 12 and 30 percentages of the oilfund on stopping climate change at least if we wish to make up for the problems we are causing.

In this context, the costs to establish CO2 capture and storage are trivial. If we want to have a clean conscience for our oil export, we should spend far more each year to find ways to mitigate greenhouse gases from our oil.