The Norwegian government has decided to seek legislative authorization to expand its budget for buying non-EU international carbon credits to NOK 26.1 billion – an increase of NOK 11 billion (~$1.1 billion) over earlier projections.
The decision, detailed in the government’s Climate Status and Plan for 2027 (known as the “Green Book”), underscores growing challenges in Oslo’s alignment with European Union climate frameworks.
While Norway has committed under the Paris Agreement to slash emissions by 70-75% by 2035, its reliance on joint execution via EU mechanisms is facing friction due to shifting regulatory targets in Brussels.
“There is still a risk that we do not reach the climate targets. Therefore, the government strengthens both efforts to reduce national emissions, and cooperation to cut emissions internationally,” said Climate and Environment Minister Sigrun Gjerløw Aasland.
The spending hike stems from a misalignment between Norwegian national ambitions and the evolving structure of European carbon markets. Norway’s climate targets are stricter than current overarching EU benchmarks.
Concurrently, uncertainty surrounds the European Commission‘s pending regulatory proposals for 2035 and 2040, leaving a wide variance in how much structural emission reduction the EU system will actually deliver (projected between 66.25% and 72.5% by 2035).
Furthermore, a slower tightening of the EU Emissions Trading System (ETS) quota cap means European mechanisms may deliver smaller contributions toward Paris targets than initially expected.
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To bridge this regulatory gap, Oslo is turning to Article 6 carbon credits established under the Paris Agreement, allowing the state to finance carbon reduction projects outside the European economic block.
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