The Fridtjof Nansen Institute
Home 
About FNI 
Research 
Publications 
Staff 
News & events 
Contact 


FNI PUBLICATION SUMMARIES

European Energy and Environmental Politics



Jevnaker, Torbjørg, Tor Håkon Inderberg, Jørgen Wettestad and Maria Waag
Den britiske klimalovens første fem år: en oversikt over sentral nasjonal dynamikk og samspillet med EU ('The UK's Climate Change Act's first five years: an overview of domestic developments and interaction with the EU')
Oslo, Energi Norge, 2014, 24 p. In Norwegian.
> Download the report here

The UK's Climate Change Act (CCA) has been functioning for five years. This report provides an overview of its influence so far, with a specific focus on the power sector, and including both key domestic processes and interaction with EU climate policy, particularly the EU emissions trading system. As regards domestic processes, the CCA has led to a more long-term perspective in policy.making. This can be noticed for instance in the case of Electricity Market Reform. With regard to interaction with the EU, this has been quite smooth so far, with the CCA targets using EU policy as focal points. However, as the CCA has emissions reductions targets extending up to 2027 and the EU so far only to 2020, ensuring a good match here is a key challenge ahead.



Inderberg, Tor Håkon
'Governing Quasi-Public Network Services for adaptation to climate change'
Local Environment, online 27.01.2014, 18 p. DOI: 10.1080/13549839.2013.869200
> Purchase original article here

Adaptation takes place in both private and public sectors, or as an interrelation between the two, and often under the realm of public regulation. Thispaper uses the Swedish and the Norwegian electricity grid sector, as providers of a vital public good under strict public regulation, to analyse reforms’ effects on adaptive capacity in this area. The paper shows that transformational changes in both sectors during the 1990s shifted both the formal organisational structure (rules and regulations), as well as the organisational culture, in the direction of economic efficiency. These two dimensions individually reduced adaptive capacity to climate change, although differently in the two countries. However, the formal structure and organisational culture also yielded substantial influence on each other. This leads to the conclusion that when designing public regulations and implementing reforms, organisational culture must be considered in the design. Also the paper contests previous findings in the literature by showing that under given conditions there exist some substitution between the two dimensions in influencing adaptive capacity, implying that both dimensions should be included when analysing adaptation since analysing them in isolation is likely to lead to wrong conclusions.



Skjærseth, Jon Birger
Unpacking the EU Climate and Energy Package: Causes, Content, Consequences
FNI Report 2/2013. Lysaker, FNI, 2013, 50 p.
> Download report

This report examines the EU’s innovative climate and energy package: how this package of binding policies has been initiated, decided and implemented. From the early 1990s, EU climate and energy policies developed separately, despite efforts at coordination. Policies in these areas were based on different organiza¬tion, timing, policy instruments and objectives. In 2008, the EU adopted a package of climate and energy policies, harmonizing legislation to ambition levels unmatched by any other major actor in international climate policy. The present report argues that the linking of EU climate and energy policies can explain how differently-valued issues were combined, side-payments crafted to overcome distributional obstacles and synergies created to achieve a successfully negotiated outcome. Changes in circumstances can explain why synergies between climate and energy policies have been replaced by conflict and why this package may be a one-off event. Whereas issue-linkages can promote agreement, package deals may act to impede revision if circumstances change, as amending one component may have repercussions for the package as a whole. Stagnation or even disintegration of the EU climate and energy package may weaken the EU’s realization of a low-carbon economy and its ‘leadership by example’ in international climate policy.



Skjærseth, Jon Birger and Per Ove Eikeland
'Introduction'
In Jon Birger Skjærseth and Per Ove Eikeland (eds), Corporate Responses to EU Emissions Trading: Resistance, Innovation or Responsibility? Farnham (UK), Ashgate, 2013, pp. 1-17.
> More information about the book at the publisher's website

The chapter introduces the main questions analysed by the book; How has industries and companies regulated by the European Union emissions trading system responded to the system in terms of climate strategies and how should we explain why industries and companies have responded differently. A short introduction to the EU ETS is given and a brief outline of the book.



Eikeland, Per Ove and Jon Birger Skjærseth
'Analytical Framework'
In Jon Birger Skjærseth and Per Ove Eikeland (eds), Corporate Responses to EU Emissions Trading: Resistance, Innovation or Responsibility? Farnham (UK), Ashgate, 2013, pp. 19-43.
> More information about the book at the publisher's website

This chapter presents the analytical framework for explaining observed variation in climate strategies, with special emphasis on corporate response to the EU ETS. It defines and conceptualize corporate climate strategies on a continuum from reactive to innovative strategies. Next, the chapter develops three models that each generate specific expectations about how companies will respond. The first model - companies as reluctant adapters - expects company responses in the direction of reactive strategies: opposition to environmental regulation and adaptation at he lowest cost possible. The second model - companies as innovators - expects that appropriately designed regulation will stimulate exploration, experimentation and innovtion in firms. The final model portrays compnaies as socially responsible actors, underscoring the importance of corporate social responsibility and how regulation may 'crowd in' or 'crowd out' environmental norms.



Eikeland, Per Ove
'Electric Power Industry'
In Jon Birger Skjærseth and Per Ove Eikeland (eds), Corporate Responses to EU Emissions Trading: Resistance, Innovation or Responsibility? Farnham (UK), Ashgate, 2013, pp. 45-97.
> More information about the book at the publisher's website

The chapter analyses the clear shifts observed in studied power companies towards more proactive and innovative climate strategies. It finds empirical support for the EU ETS impacting on corporate strategies through various mechanisms. Most notably, the EU ETS stimulated new strategies of learning at the industry and company levels whereby most major companies collectively agreed on a strategy for decarbonizing energy supply in Europe by 2050 through focusing on new business opportunities that could be materialise from such a strategy. The EU ETS did not evolve in a regulatory vacuum, however, and the chapter discusses how this policy instrument interacted with other policies affecting company behaviours.



Skjærseth, Jon Birger
'Oil Industry'
In Jon Birger Skjærseth and Per Ove Eikeland (eds), Corporate Responses to EU Emissions Trading: Resistance, Innovation or Responsibility? Farnham (UK), Ashgate, 2013, pp. 99-125.
> More information about the book at the publisher's website

The oil industry, which makes a living from some of the key sources of anthropogenic climate change, stands out as an important sector for achieving a low-carbon economy in Europe and other parts of the world. To what extent, how and under what conditions has the ETS affected the climate strategies of major multinational oil companies? This chapter shows that the main importance of the ETS in this sector concerns the long-term strategic consequences of carbon pricing. First of all, oil companies base their long-term strategies on forecasts or scenarios. The ETS has affected these forecasts by changing company beliefs about a future in which concerted governmental action, a price on carbon emissions and the need for more low-carbon energy will occupy a more prominent place. Second, the impact of the ETS has been most significant for those companies that have lagged furthest behind the ‘leaders’. Finally, we see that the EU is developing a technology supply side to its climate policy in the form of technology platforms to stimulate innovation on low-carbon solutions. These initiatives are linked to the ETS in several ways. The success of these initiatives will be important for future GHG emissions from the oil industry, and in particular efforts to make carbon capture and storage (CCS) commercially viable



Gulbrandsen, Lars H. and Christian Stenqvist
'Pulp and Paper Industry'
In Jon Birger Skjærseth and Per Ove Eikeland (eds), Corporate Responses to EU Emissions Trading: Resistance, Innovation or Responsibility? Farnham (UK), Ashgate, 2013, pp. 127-164.
> More information about the book at the publisher's website

This chapter examines to what extent and how the EU ETS has influenced the climate strategies of major pulp and paper companies. Aggregate changes in the pulp and paper industry are analysed by investigating the EU ETS position of the Confederation of European Paper Industries (CEPI), the industry association of the European pulp and paper industry, and the climate strategies of the ten largest pulp and paper companies in the EU ETS. The sector study is followed by a study of two pulp and paper companies, Svenska Cellulosa Aktiebolaget (SCA) and Norske Skog with their respective headquarters in Sweden and Norway, to shed more light on the short- and long-term effects of the EU ETS. The study shows that although the EU ETS has strengthened ongoing abatement efforts in the pulp and paper industry, emissions trading has had a rather limited effect on innovation activities in the industry thus far.



Christensen, Anne Raaum
'Cement Industry'
In Jon Birger Skjærseth and Per Ove Eikeland (eds), Corporate Responses to EU Emissions Trading: Resistance, Innovation or Responsibility? Farnham (UK), Ashgate, 2013, pp. 165-208.
> More information about the book at the publisher's website

This chapter examines how specific cement companies have responded to the climate challenge in general and the mandatory EU ETS in particular. The aim is to detect the mechanisms through which the ETS works, and gain a fuller understanding of the various drivers of change in corporate climate strategies. Our data indicate that climate strategies in the cement sector have become gradually more proactive in the first decade of the 2000s, but with inter-company differences in strategic responses. It is very difficult to ascertain to what extent these changes can be attributed to the ETS, as the scheme works together with, and is conditioned by, a range of other company-external and company-internal factors. However, some cautious conclusions can be drawn. In the short term, the EU ETS has not been able to provide strong economic incentives for strategy changes, due to significant over-allocation of allowances and low carbon prices. Nonetheless, expectations of a more stringent ETS in the near future underpin the companies’ increasingly proactive long-term climate strategies. The trading scheme has put carbon on the corporate agenda, and has contributed to a ‘mind-change’ in the cement companies. We find clear indications that the ETS has directed company attention to previously underexplored or unattended business lines – like energy efficiency measures, clinker substitution and CCS technologies.



Wettestad, Jørgen and Liv Arntzen Løchen
'Steel Industry'
In Jon Birger Skjærseth and Per Ove Eikeland (eds), Corporate Responses to EU Emissions Trading: Resistance, Innovation or Responsibility? Farnham (UK), Ashgate, 2013, pp. 209-252.
> More information about the book at the publisher's website

This chapter discusses ETS effects on EU steel companies. A first main finding is that the steel sector shows a kind of ‘Janus face’ in the field of climate change politics. In the high-profile ETS context, the sector has held a reluctant and sceptical stance from the very start, evident also in recent process of establishing industrial benchmarks. These developments may easily overshadow the other more technical and low-profile face, where a long-standing technology development process has given birth to the promising ULCOS programme. Second, although steel companies may well have been ‘carbon fat cats’ for a period, interesting changes have taken place, in the form of more short-term energy efficiency initiatives and more long-term technology development initiatives. This is underpinned by information about aggregate climate strategies and a more in-depth study of the major company ThyssenKrupp and the smaller SSAB (i.e. Swedish Steel AB). Third, as regards the specific impact of the ETS on companies in this sector, the impact on corporate leaders thinking and awareness stands out as the most important effect so far. As one steel company interviewee expressed it, there has been a considerable ‘mind change’ brought about by the ETS, not least induced by the changes adopted in 2009. Still, substantial uncertainty attends the functioning also of a revised ETS unless it can be matched by corresponding global measures.



Skjærseth, Jon Birger, Per Ove Eikeland, Anne Raaum Christensen, Lars H. Gulbrandsen, Arild Underdal and Jørgen Wettestad
'Comparative Analysis'
In Jon Birger Skjærseth and Per Ove Eikeland (eds), Corporate Responses to EU Emissions Trading: Resistance, Innovation or Responsibility? Farnham (UK), Ashgate, 2013, pp. 253-282.
> More information about the book at the publisher's website

This chapter compares companies within the electric power, oil, pulp and paper, cement, and steel industries to shed light on whether, how and why they have responded to the world’s first international emissions trading system. The main conclusion is that all companies and sectors have, to varying degrees, shifted their short- and long-term climate strategies in a more ‘innovative’ direction since the introduction (or anticipation) of the EU ETS. The most significant changes can be observed in the electric power industry. Interesting changes have also taken place in the energy-intensive industries, but these changes have been less substantial and less widespread. Moreover, we note that inter-company collaboration on low-carbon solutions has increased.



Eikeland, Per Ove and Jon Birger Skjærseth
'Concluding Remarks and the Road Ahead'
In Jon Birger Skjærseth and Per Ove Eikeland (eds), Corporate Responses to EU Emissions Trading: Resistance, Innovation or Responsibility? Farnham (UK), Ashgate, 2013, pp. 283-291.
> More information about the book at the publisher's website

The chapter first summarise main findings. A first conclusion is that all companies and sectors studied have adopted more proactive strategies with innovative elements. Second, cooperation between companies on low-carbon innovation has increased. Third, the most significant aggregate changes can be observed in the electric power industry, which has embarked on a joint strategy of de-cabonising energy supply in Europe by 2050. Fourth, the ETS has affected these changes significantly. Fifth, the EU ETS affects strategies through different mechanisms: regulatory pressure creating incentives for cost-cutting and triggering attention, experimentation, learning and investment in low-carbon solutions outside business-as-usual for companies. As to variation between companies, a tentative conclusion is that innovative responses seem most likely for those exposed to limited international competition, that have inherited a technology base suitable for low-carbon solutions, have strong dynamic management capabilities and enjoy supportive and enabling national contexts. The chapters ends with a brief discussion about whether the EU ETS has been appropriately designed so as to drive long-term de-carbonization in Europe.



Eikeland, Per Ove
EU Energy Policy Integration - Stakeholders, Institutions and Issue-linkages
FNI Report 13/2012. Lysaker, FNI, 2012, 139 p.
> Download full-text version (PDF)

This study documents advances in EU energy policy integration in the period 2007–2009 as compared to the baseline situation, defined as transfer of competency over energy-policy decisions to the EU level. These advances are discussed in light of EU integration theory, with the issue-linking approach from international negotiation theory as cross-cutting approach. A clear conclusion is that intergovernmentalist theory cannot be refuted. In fact, observations underpin that this approach explains much of the changes observed. We saw clear indications of changes in preferences by key member state governments from the baseline situation, with clearer willingness for allowing EU level governance. Another conclusion is that the energy policy integration achieved cannot be understood without reference to EU-level institutions providing entrepreneurship so as to find equitable solutions for the member states. Supranational institutions, notably the European Commission, backed energy policy supranationalism more skillfully than what is observed in the baseline period. Hence, initial change in member-state preferences was a necessary but not sufficient condition for the stronger energy policy integration seen in the period. In order to investigate the broader legitimacy base among non-state stakeholders, the study applies the policy network approach. A main conclusion is that the preferences of major stakeholder networks were quite stable when compared to the baseline situation, although longer-term changes are observed. This said, we observed strong indications of shifts in opportunities of various stakeholder networks to influence Commission energy policy-making. A final conclusion is that the increments towards stronger EU integration were facilitated by the tactic of simultaneously negotiating different sub-policies, i.e. through issue-linking. The agreement reached thus represented higher ambitiousness than the baseline situation coupled with a stronger and broader legitimacy base. The study ends with a brief discussion of how robust the new-achieved legitimacy for EU energy policy integration really is, in light of deep economic crisis unfolding from 2007.



Skjærseth, Jon Birger
and Per Ove Eikeland (eds)
Corporate Responses to EU Emissions Trading: Resistance, Innovation or Responsibility?
Farnham, Ashgate, 2013, 322 p.
> More information about the book
> Promotion flyer

The European Union (EU) aims to put Europe on track toward a low-carbon economy. In this striking challenge, the EU Emissions Trading System (EU ETS) has been singled out as the Union’s key climate policy instrument, ultimately aimed as a model for a global carbon market. The learning effect of the EU ETS could thus be tremendous. This study explores how the EU ETS actually works on the ground, affecting corporate climate strategies. It covers general sector responses as well as systematic comparative studies of companies across the sectors. The latter enables improved understanding of causal effects and the role of interaction between different policy instruments and other factors that impact corporate climate strategies. The study explores a broad set of mechanisms at play potentially linking the EU ETS to company climate strategies. These include how corporate norms of responsibility are affected by the EU ETS and how economic incentives provide opportunities for innovation. The book’s main contribution lies in its systematic examination of corporate responses to the EU ETS from a broad empirical and analytical social science perspective covering companies in all main EU ETS sectors: electric power, oil, cement, steel and pulp and paper.



Gulbrandsen, Lars H. and Christian Stenqvist
'The limited Effect of EU Emissions Trading on Corporate Climate Strategies: Comparison of a Swedish and a Norwegian Pulp and Paper Company'
Energy Policy, Vol 56, May 2013, pp. 516-525
> Purchase the original article here or download the accepted author manuscript here

This article examines to what extent and how the EU ETS has influenced the climate strategies of two Nordic pulp and paper companies: Swedish SCA and Norwegian Norske Skog. Rising electricity prices are perceived to be the greatest effect of the scheme. The EU ETS has served to reinforce commitments to improve energy efficiency and reduce CO2 emissions in both companies studied. Procedures like monitoring of CO2 emissions and accounting for CO2 prices have become more significant since the introduction of the EU ETS, but the scheme has not triggered a search for innovative, low-carbon solutions. Due to differences in market factors and production factors, SCA has been more active than Norske Skog in investing in and implementing CO2-lean actions. Future studies of climate-mitigation activities, strategies and innovations in the pulp and paper industry should involve more in-depth investigation of the interactions between such factors and the EU ETS.



Boasson, Elin Lerum and Jørgen Wettestad
EU Climate Policy: Industry, Policy Interaction and External Environment
Farnham, Ashgate, 2013, 223 p.
> More information about the book
> Related FNI News article
> Book review in International Affairs

Climate policy is today a significant area of EU governance, providing important framework conditions for many industries. But how has EU climate policy developed? This book offers structured, comparative case studies of the development of four central climate policies: emissions trading, renewables, carbon capture and storage, and energy policy for buildings. The book examines central similarities and differences in how these policies have taken shape as regards, first, the basic competence distribution between the EU and member states levels, and, second, the steering method, with technology support versus market mechanisms as key dimensions. Specific attention is given to three core issues: the role of industry, policy interaction, and the EU-external environment. Combining sociological and political science theories, the causal relevance of a number of specific mechanisms derived from theories such as Liberal Intergovernmentalism, Multi-level Governance and New Institutionalism is discussed. Drawing on more than 60 interviewees, what emerges are fascinating stories – of skilled entrepreneurs who have managed to create and exploit political windows of opportunity, and of more long-term path-dependent developments.



Inderberg, Tor Håkon
Formal Structure and Culture: Organizational Influence on Adaptive Capacity to Climate Change in Quasi-public Network Sectors
Doctoral dissertation, Faculty of Social Sciences, University of Oslo, 2012, 192 p.

This PhD thesis analyses adaptive capacity to climate change in quasi-public network services. These sectors are represented by case-studies of the Norwegian and the Swedish electricity grid sector. An organization theory framework is utilized with two main perspectives. The instrumental-organizational and the institutional-cultural perspective focus on two organizational dimensions operating at the sector level: the formal structure and organizational culture, respectably. Formal structure is understood as the formal rules regulations, rules, and command lines that determine who can do what, while organizational culture is understood as the individual institution or sector and the dominant norms and values within this sphere. Through four articles and a general discussion of findings in thesis it analyses how a change in formal structure and organizational culture influence the capacity of the sectors to adapt to climate change. The analysis operates both at the sector-level and at the organization-level and the study comprises isolated analysis of the Norwegian and Swedish sectors, as well as comparisons.

Resting on analysis of data derived from formal documents like official reports, as well as 40 interviews, the thesis finds that both formal structure and organizational culture influence climate change adaptive capacity. In both countries the sector has seen a reduction in adaptive capacity through New Public Management inspired reforms, although a larger reduction has found place in Norway than in Sweden. This is due to a more radical change in both the dimensions, where the organizational culture went from emphasizing robustness and system resilience while largely disregarding economic cost, to the other extreme, where economic efficiency took over as the main legitimating factor for decisions. This was further reflected in the formal structure which led to undermine adaptive capacity. For Sweden, with a parallel reform five years after the Norwegian one, the reduction in adaptive capacity was present because of similar change in the organizational dimensions. The changes were less radical, however, and the Swedish system has showed an ability to balance the considerations of system function and resilience with that of economic efficiency.



Wettestad, Jørgen, Per Ove Eikeland and Måns Nilsson
'EU Climate and Energy Policy: A Hesitant Supranational Turn?'
Global Environmental Politics, Vol 12, No 2, 2012, pp. 65-84.
> Download article

This article explains why the significant changes in the EU Emissions Trading System (EU ETS) for the 2013–2020 phase were adopted in 2008. The combination of a more stringent EU-wide cap, allocation of emission allowances for payment, and limits on imports of credits from third countries have strengthened the system for the post-2012 period. This will promote reduction in greenhouse gases compared to the old system. The main reasons for these changes are, first, changes in the positions of the member states due to unsatisfactory experience with performance of the EU ETS so far. Second, a “package approach” where the EU ETS reform was integrated into wider energy and climate policy facilitated agreement on the changes. Third, changes in the position of nonstate actors and a desire to affect the international climate negotiations contributed to the reform.



Christensen, Anne Raaum and Lars H. Gulbrandsen
EU Policies on Car Emissions and Fuel Quality: Reducing the Climate Impact from Road Transport
FNI Report 14/2012. Lysaker, FNI, 2012, 66 p.
> Download full-text version (PDF)

Transport is the second biggest source of greenhouse gas (GHG) emissions in the EU, and contributes about one-quarter of the EU’s total emissions of CO2. Significant reductions in GHG emissions from transport are required if the EU is to achieve its long-term climate goals. This report examines the making and implementation of two of the regulations the EU has put in place to lower emissions from the transport sector: the EU’s revised Fuel Quality Directive (Directive 2009/30/EC) and the cars/CO2 regulation (Regulation (EC) 443/2009). It was found that the relevance of various theories of policymaking in the EU varies with different policy phases. A policy-network understanding of EU policymaking is strengthened when assessing the policy-initiation phase. The Commission played a key role in this phase and drafted legislation in close collaboration with the car and oil refining industries. An intergovernmentalist understanding of EU policy-making is strengthened when assessing the decision-making phase. In this phase, member states defending the interests of their domestic industries had strong influence, but the European Parliament played an important role in this phase too, employing its power in the co-decision procedure. Finally, the implementation process is best understood as a multi-level governance process in which several actors and institutions - notably the Commission, member states, industries, and NGOs - influenced the process.



Skjærseth, Jon Birger
'Governance by EU Emissions Trading: Resistance or Innovation in the Oil Industry?'
International Environmental Agreements: Politics, Law and Economics, Vol 13, No 1, 2013, pp. 31-48.
> Purchase original article here

Studies of the EU Emissions Trading System (ETS) abound. Much is known about the economic incentives they contain to promote abatement and innovation, and studies are focusing on the short-term aggregate effects at sector and system levels. Less, however, is known about how the EU ETS affects companies, including their strategies, long-term innovation plans, and deployment of low-carbon solutions. This article presents an analytical framework of how companies are likely respond to regulation like the EU ETS, subsequently applied to companies in the oil industry, represented by the major multinationals ExxonMobil and Shell. The analysis finds that these companies had quite different initial responses to the ETS, whereas their long-term strategic responses to carbon pricing show signs of convergence.



Jevnaker, Torbjørg
An Electric Mandate: The EU procedure for harmonising cross-border network codes for electricity
FNI Report 18/2012. Lysaker, FNI, 2012, 105 p.
> Download full-text version (PDF)

The research question addressed in this report is why the EU procedure for developing network codes for electricity was enacted in its particular form. Passed by the EU in 2009, European organisations partly outside of the formal EU structure were given a mandate to make rules that would apply across the EU. This was puzzling given the observed resistance on part of the member states to let go of national control over energy issues. Drawing on institutionalist perspectives, the analysis shows that the procedure would not have been passed without support from and compromise among the Commission, European Parliament and the member states in Council; that parts of the procedure imitated existing practices within related policy areas; that horizontal and vertical specialization within the nation-states along with a Commission actively promoting transnational cooperation changed the feedback mechanisms, which changed the direction of European energy market regulation; and finally, that the new actors played an active role vis-à-vis EU bodies as the latter were legislating on the procedure.



Ydersbond, Inga Margrete
Multi-level lobbying in the EU: The case of the Renewables Directive and the German energy industry
FNI Report 10/2012. Lysaker, FNI, 2012, 109 p.
> Download full-text version (PDF)

This study examines the lobbying strategies employed by the interest organizations of Germany’s energy industries in the process leading up to the EU’s Renewable Energy Directive. How did they lobby, and what does this reveal about their perceptions of power relations in the EU? This report focuses on the most controversial part of the Directive: legal prescriptions for support mechanisms to increase the production of renewable energy in Europe. The utilities and the renewables industries disagreed deeply, with the utilities industry favouring an EU-wide green certificate scheme, while the renewables industry pressed for national feed-in tariffs. Nine interest organizations representing these sectors, five German and four at the EU level, serve as cases in this study. Expectations as to lobbying behaviour based on the two theories/theory perspectives of liberal intergovernmentalism (LI) and multi-level governance (MLG) are formulated and tested in a most-likely case design. Result: observations are better described by the MLG perspective than by LI.



Wettestad, Jørgen
'The Improving Effectiveness of CLRTAP: Due to a Clever Design?'
In Rolf Lidskog and Göran Sundquist (eds), Governing the Air - The Dynamics of Science, Policy and Citizen Interaction, Cambridge (USA), MIT Press, 2011, pp. 39-61.
> More information about the book at the publisher's website

This chapter identifies and discusses a ‘top five’ list of central obstacles to the improvement of regime effectiveness and related important institutional cures and techniques and discuss, and subsequently applies this framework in an analysis of the CLRTAP regime. The main conclusion is that CLRTAP has been cleverly designed, not least with regard to its strong focus on knowledge development and its dynamic and gradual style of development, differentiating and strengthening commitments as knowledge has improved and better technologies have become available. This has in turn led to the problems addressed by the regime becoming less malign over time. So there has been important internal interaction effects. Important external interaction has also taken place. Related policy development and implementation within the EU has become crucially important to bring into the causal picture.



Inderberg, Tor Håkon
'Governance for Climate-change Adaptive Capacity in the Swedish Electricity Sector'
Public Management Review, Vol 14, No 7, pp. 967-985.
> Purchase original article here or download post-print version here

This article analyses the capacity for climate change adaptation (CCA) in the Swedish electricity grid sector. Utilizing two perspectives from organization theory it directs attention to changes in the sector, from the 1980s until 2010, with radical change with an NPM-reform in 1996. For the time before 1996 findings indicate a high CCA capacity. The reform led to a reduction in this capacity through an increased emphasis on economic efficiency, although there also has been some room for robustness-considerations. This article shows that organizational culture and formal structure influence the capacity to adapt to climate change.



O'Brien, Karen, Siri Mittet, Eva Bakkeslett, Siri Eriksen, Inger Hansen-Bauer, Grete Hovelsrud, Tor Håkon Inderberg, Cathrine Ruud, Inger-Lise Saglie, Linda Sygna
'Klimatilpasning: Hva betyr det for meg?' ('Adaptation to Climate Change: What Does It Mean for Me?')
Oslo, PLAN Project, 2012, 108 p. In Norwegian.
> Download entire book
> Read related FNI News article (in Norwegian)

Climate change is relevant for all of us. But still, most people do not know much about how climate change will affect our lives and what adaptation to climate change means. The book provides an easy to read and rich discussion about what it means to adapt - as an individual, as part of an organization, as a municipality, nation or as a global citizen.



Boasson, Elin Lerum
Multi-sphere Climate Policy: Conceptualizing National Policy-making in Europe
Doctoral dissertation, Department of Political Science, Faculty of Social Sciences, University of Oslo. Oslo, Unipub, 2011, 287 p.
> Read related FNI news release

In 2000, there was general political agreement that Norwegian climate policy should focus on general economic measures, such as the CO2 tax and emission quotas. Nevertheless, only ten years later, a wide range of more specific measures were in place, albeit with considerable differences among the issue-areas. While CCS is supported through direct state industry construction, renewable energy is supported by means of a market-based system of green certificates. In the buildings sector, a great range of different measures have been introduced to increase energy efficiency. Massive sums have been invested in CCS, but much less support has been given to renewable energy and energy efficiency of buildings. The dissertation enquires whether this is due to political governance, to close ties between bureaucracy and industry actors, or to EU directives and regulation imposed on Norway through the EEA Agreement. The analysis shows that Norwegian politicians have devoted considerable energy and resources to realizing CCS, but opposition from the oil industry and parts of the bureaucracy has made implementation difficult. Many actors have invoked EU arguments to strengthen their own positions, whereas in reality the EU has had scant influence on Norway's CCS policy. As regards renewable energy, it took a long time for the politicians to bow to pressures from the power industry to create a system of green certificates. It also proved difficult to design an alternative system that could be acceptable under EU state aid regulations. Norwegian politicians were not very interested in regulations related to energy efficiency of buildings, and this gave administrative officials greater freedom to develop measures. EU policies in this sphere had differing consequences for the various aspects of policy on energy efficiency in buildings, due in part to differences between the predominant cultures of the Ministry of Petroleum and Energy, and the Ministry of Local Government. Comparison of three issue-areas reveals the climate paradox of Norwegian politics: Politicians have spent so much time getting CCS to succeed that they have neither had time nor energy left to deal with day-to-day challenges related to other aspects of climate policy. In addition to the empirical analysis, the dissertation presents a theoretical framework that can be applied to improve our understanding of how climate policy is created, in Norway as well as in other countries.



Inderberg, Tor Håkon and Liv Arntzen Løchen
'Adaptation to Climate Change among Electricity Distribution Companies in Norway and Sweden: Lessons from the Field'
Local Environment, Vol 17, No 6-7, 2012, pp. 663-678
> Purchase original article here

The article analyses local adaptation to climate change in the electricity sector in Norway and Sweden. More specific, this article analyses the adaptive capacity of four local grid-companies in the two countries, based on national context, company size, and experience with weather events. Further, the four cases’ experience with, awareness of, and adaptations to climate change are described. The Swedish companies have a higher awareness to vulnerability to climate hange than the Norwegian ones. They have also made more adaptations. The most important factors for explaining this are differences in the national regulations, along with differences between the companies in experience with extreme weather. The Norwegian regulatory scheme has moved further in the direction of cost efficiency than the Swedish one. This leaves a larger room for adaptation in the Swedish companies while reducing the ability to adapt in the Norwegian ones. In terms of size, the large companies clearly have a higher adaptive capacity to climate change than the smaller ones. The policy implications of the findings are that in order to encourage adaptation, regulatory models will have to allow for other considerations than economic efficiency, as well as include incentives for adaptation.



Wettestad, Jørgen
'Reducing Long-range Transport of Air Pollutants in Europe'
In Steinar Andresen, Elin Lerum Boasson and Geir Hønneland (eds), International Environmental Agreements: An Introduction. London/New York, Routledge, 2012, pp. 23-37.
> More information about the book at the publisher's website

The multilateral partnership to emerge from the 1979 Air Convention has grown into an impressive structure with a number of offshoots and good results. Eight protocols have been successfully negotiated, each new step addressing new issues or representing tighter control on emission levels. The most ambitious of these protocols is the 1999 Gothenburg Protocol, which is also widest in scope. Most success in terms of emissions reductions has been recorded in the field of sulphur abatement; emissions have dropped by 65 per cent. This has led to a significant reduction in acidification-related damage in Europe. But the critical loads in the environment are still exceeded in vulnerable areas.



Luta, Alexandru
The Potential for Small-Scale Hydro Power in Romania: A Call for More Co-ordinated Governance
FNI Report 13/2011. Lysaker, FNI, 2011, 31 p.
> Download full-text version (PDF)

Romania offers significant untapped resources for the development of small-scale hydro (SSH). The technology has been deployed before and is preserved. Projected increases in the demand for electricity coupled with the expected decommissioning of inefficient thermal capacity means that plenty of scope exists for adding capacity in Romania. It is questionable though whether the present lavish treatment of renewables is sustainable. The excessive burden placed on consumers given the likely policy overshoot raises questions about the sustainability of the Green Certificate scheme under the present form. Real hurdles about SSH projects persist in identifying sites, acquiring land and obtaining permits. The key hindrances to a more thorough expansion of SSH in Romania have to do with decision-making transparency, policy predictability and information diffusion. The erratic nature of Romanian renewables policy is directly connected to slow pace of the Romanian authorities in learning how to coordinate policy implementation between the local, central and European level in an effective manner. But given that that no fundamental regulatory transformation occur over the next year or two and that in that interval the issuance of permits and the acquisition of property is standardized, SSH may yet prove a fruitful line of business in Romania.



Løchen, Liv Arntzen
Small Hydro in Ukraine: To Invest or not to Invest?
FNI Report 12/2011. Lysaker, FNI, 2011, 28 p.
> Download full-text version (PDF)

The vast and unexploited renewable energy potential and the introduction of green tariffs in 2009 have made Ukraine an attractive location for investors within the renewable energy sector. The Green Tariff system offers developers and investors the highest feed-in tariffs in Eastern Europe, and thus far covers alternative energy production from biomass, biogas, wind power plants and hydropower plants. Ukraine has a history in both large- and small hydro production. Whereas the potential of the country’s big rivers is now to a great extent exploited, this is not the case for the smaller watercourses. Ukraine is well endowed with small rivers, approximately 60,000 of which can be classified as ‘very small’. Most of these are located in the western part of the country, near the Carpathian Mountains. However, despite the natural potential, foreign investors should be aware of the potential risks and hurdles. The country has a huge problem with corruption, and the process of obtaining licenses is not straight forward. On the whole, it can be worthwhile exploring the possibilities of small hydro production in Ukraine for those who can deal with a high level of risk and uncertainty. If not, one would be better advised to look for investment locations elsewhere.



Christensen, Anne Raaum
'Karbonfangst- og lagring i industrien' ('Carbon Capture and Storage in Industry')
In Jørgen Randers and Daniel Rees (eds), Statusrapport for norsk klimapolitikk 2011 ('Status Report for Norwegian Climate Politics 2011'). Oslo, Holder de Ord, 2011, pp. 59-60. In Norwegian.
> Download entire report

This chapter looks into possibilities and concrete plans for carbon capture and storage (CCS) in the Norwegian industry. Gassnova (through the CLIMIT programme) has recently approved funding for the first CO2 capture project in the industrial sector: at Norcem's cement plant in Brevik. These plans for a test facility are studied somewhat more in-depth.



Christensen, Anne Raaum
'Forbedringer i kraftkrevende industri' ('Improvements in Energy-Intensive Industry')
In Jørgen Randers and Daniel Rees (eds), Statusrapport for norsk klimapolitikk 2011 ('Status Report for Norwegian Climate Politics 2011'). Oslo, Holder de Ord, 2011, pp. 61-64. In Norwegian.
> Download entire report

This chapter seeks to give an overview of important climate-related changes in Norwegian energy-intensive industries over the last year (2010/2011). Greenhouse gas emissions have decreased since 1990, but there is still a large potential for further improvements. Enova's dedicated support program for the industry sector was expanded in 2011, and the chapter lists several interesting industry projects which have received funding from the public enterprise. Two projects which are studied somewhat more in-depth are Finnfjord's plans to invest in Norway’s biggest energy recovery plant, as well as paper producer Sødra Cell Tofte's plans for increased use of bio-energy.



Løchen, Liv Arntzen
'Elektrifisering av norsk sokkel og en økt andel av anleggene plassert på land' ('Electrification of the Norwegian Continental Shelf and an Increasing Share of the Onshore Facilities')
In Jørgen Randers and Daniel Rees (eds), Statusrapport for norsk klimapolitikk 2011 ('Status Report for Norwegian Climate Politics 2011'). Oslo, Holder de Ord, 2011, pp. 65-68. In Norwegian.
> Download entire report

This chapter looks into the latest developments with regard to the electrification of the Norwegian continental shelf and onshore facilities. Despite political intentions to increase the amount of facilities supplied by electricity from the mainland, it is still a a long way to go. Recent developments include electrification of the Gjøa and Valhall platforms. However, the expansion of Ekofisk on the other hand was approved without demand for electrification. Electrification is a hotly debated issue and is regarded as an expensive move since it will demand an upgrade of the grid and potentially cause power shortage in certain areas. The question of who is going to pay for such an upgrade is also an important element in the discussion.



Inderberg, Tor Håkon
'Opprusting av elnettet' ('Improvement of the Electricity Grid')
In Jørgen Randers and Daniel Rees (eds), Statusrapport for norsk klimapolitikk 2011 ('Status Report for Norwegian Climate Politics 2011'). Oslo, Holder de Ord, 2011, pp. 83-86. In Norwegian.
> Download entire report

This chapter points to the latest developments for the improvement of the Norwegian electricity grid. There is a large investment gap and need for renewal of the high voltage grid. This is caused by an ageing grid, inclusion of more intermittent renewable energy, and low robustness of the Norwegian grid, in particular in the North. While increasing voltage levels on existing lines from 300 to 420 kv is an option, there is still a large need for building new grid. There are several drivers of the need for improvement of the electricity high-voltage grid, and to be able to connect future new generation capacity of renewable energy, it is necessary to consider all the drivers along with the future projections of the need for new renewable energy. The TSO Statnetts estimates for the need for new investments have escalated almost exponentially over the last three years.



Nilsson, Måns, Lars J. Nilsson, R. Hildingsson, Johannes Stripple and Per Ove Eikeland
'The Missing Link: Bringing Institutions and Politics into Energy Future Studies'
Futures, Vol 43, No 10, 2011, pp. 1117-1128.
> Purchase original article here

Energy future studies can be a useful tool for learning about how to induce and manage technical, economic and policy change related to energy supply and use. However, in public policy, most energy future studies remain disconnected from policy making. One reason is that they often ignore the key political and institutional factors that underpin much of the anticipated, wished-for or otherwise explored energy systems developments. This paper examines how analytical insights into political and institutional dynamics can enhance energy future studies. It develops an approach that combines systems-technical change scenarios with political and institutional analysis. Using teh example of a backcasting study dealing with the long term low-carbon transformation of a national energy system, it applies two levels of institutional and political analysis; at the level of international regimes and at the level of sectoral policy, and examines how futures systems changes and policy paths are conditioned by institutional change processes.



Eikeland, Per Ove
'EU Internal Energy Market Policy: Achievements and Hurdles'
In Birchfield, Vicky L. and John Duffield (eds), Toward A Common European Union Energy Policy – Problems, Progress and Prospects. New York, Palgrave Macmillan, 2011, pp. 13-40.
> For orders and more information, see Palgrave Macmillan's website

The book chapter analyses the long-term evolutions of the EU Internal Energy Market Policy, taking a historical-institutional approach with focus on shifts in coalitions supporting and opposing the idea of a free-market solution to European energy problems. It gives a brief historical description of policy development and analyses in greater detail the Third Internal Energy Market Policy Package adopted in 2009. Specific attention is given to the failure of getting adopted mandatory ownership unbundling of the transmission grid business. We identify the key stakeholders, their positions, and how these positions have changed or remained stable over time. Particular focus in the explanation is on the evolutions of the relative power of Member State governments and EU institutions, especially the Commission and the Parliament. The Chapter next evaluates progress in completing the EU internal energy market prosess and prospects for future policies in the field.



Wettestad, Jørgen
'EU Emissions Trading; Achivements and Challenges'
In Birchfield, Vicky L. and John Duffield (eds), Toward A Common European Union Energy Policy – Problems, Progress and Prospects. New York, Palgrave Macmillan, 2011, pp. 87-113.
> For orders and more information, see Palgrave Macmillan's website

The EU emissions trading system (ETS) is based on an EU Directive that was adopted in 2003 and started functioning in 2005. It caps industrial emissions and allows trade of emission rights. EU officials refer to the ETS as both the ‘cornerstone’ and the ‘flagship’ of EU climate policy. The ETS has now been functioning for over five years and overall results stand out as mixed. The role of different societal actors can shed light on this: much industry was reluctant; environmental organisations critical; member states cautious; EU bodies wing-clipped; and matching US efforts lacking. Although a substantially improved design has been adopted for the post-2012 phase and prospects ahead look promising, several complex interaction effects mean a need for continued great but also cautious and sober expectations.



Inderberg, Tor Håkon
'Institutional Constraints to Adaptive Capacity: Adaptability to Climate Change in the Norwegian Electricity Sector'
Local Environment, Vol 16, No 4, 2011, pp. 303-319.
> Purchase the original article here or or download the post-print version here

Adaptive capacity to climate change is still an evolving concept. This article contributes to the understanding of adaptive capacity within national sectors by developing a theoretical framework consisting of two perspectives from organisation theory. The framework is used on the Norwegian electricity industry for the purpose of illustration. Together the two perspectives illuminate formal structure and institutional dimensions of adaptive capacity, showing that barriers to adaptation exist within the Norwegian sector; both within the formal regulatory structure as well as the legitimating cultural sphere of the organisational field. These barriers have developed over time and should be taken account of both to understand important dimensions of adaptive capacity and to provide practitioners with an ability to increase it.



Miard, Kadri
Lobbying During the Revision of the European Emissions Trading System: Easier for Swedish Industrial Insiders than for Norwegian Outsiders?
FNI Report 3/2011. Lysaker, FNI, 2011, 93 p.
> Download full-text version (PDF)

This report examines and compares the lobbying routes taken by Swedish and Norwegian energy-intensive industry firms during the revision of the European Emissions Trading System. Two key explanatory factors are in focus here - whether the company has its origin in the EU member state Sweden or in non-member Norway; and the size of the company. Six companies are chosen as cases: Norsk Hydro, Norcem and Norske Skog from Norway; and SSAB, Cementa and Svenska Cellulosa Aktiebolaget from Sweden. A key finding is the extensive use of European associations by all these firms in lobbying EU institutions. Also prevalent is the use of national associations, which would indicate benefits in the form of better institutional response to collective lobbying and resource-sharing aspects. Although Norwegian firms seem to have struggled more than Swedish firms when it comes to lobbying EU institutions, due to lack of access to the EU, not all differences can be explained by the fact of originating in an EU member state Sweden or non-member Norway. While company size has a positive effect on the number of available lobbying routes, this appears to depend on cross-border production and possibly other influences as well.



Spencer, Thomas, Anna Korppoo and Agata Hinc
Can the EU budget support climate policy in Central and Eastern Europe?
FIIA Working Paper No 70. Helsinki, The Finnish Institute of International Affairs, 2011, 28 p.
> Download full-text version (PDF)

The EU Climate and Energy Package contains a portfolio of targets, some of which are not backed by EU-level instruments for implementation. For CEE Member States in particular, there is a case for the deployment of EU-level fiscal instruments in order to support the implementation of EU climate policy, both in view of the potential to move beyond a 20% reduction target and the need to set their economies on a feasible decarbonization path in the longer term. The paper assessed existing financing instruments in the building sector, electricity grids, CCS and biomass, and energy market integration, and the extent of their integration in EU fiscal policy. It found that the ability of such interventions to support the goals of EU cohesion policy was in general poorly recognized in existing EU fiscal policy guidelines. The EU budget could play a role in bridging the funding gap for low-carbon projects and guiding the development of more supportive policy frameworks, which may be lacking currently.



Eikeland, Per Ove
'The Third Internal Energy Market Package: New Power Relations among Member States, EU Institutions and Non-state Actors?'
Journal of Common Market Studies, Vol 49, No 2, 2011, pp. 243-263.
> Purchase original article here

The article analyses the September 2007 European Commission proposal for a third internal energy policy package, agreed by the European union in spring 2009. Compared to legislation from 2003, the proposal reflects greater will on part of the Commission to pressure unwilling Member State governments, and shifts in Commission leverage vis-a-vis Member States as well as a shift in policy networks with clout in EU policy-making. This shift in Commission leverage would indicate stronger supranational governance in EU energy matters in the future.



Skjærseth, Jon Birger and Jørgen Wettestad
'Fixing the EU Emissions Trading System? Understanding the Post-2012 Changes'
Global Environmental Politics, Vol 10, No 4, 2010, pp. 101-123.
> Download article

This article explains why the significant changes in the EU Emissions Trading System (EU ETS) for the 2013–2020 phase were adopted in 2008. The combination of a more stringent EU-wide cap, allocation of emission allowances for payment, and limits on imports of credits from third countries have strengthened the system for the post-2012 period. This will promote reduction in greenhouse gases compared to the old system. The main reasons for these changes are, first, changes in the positions of the member states due to unsatisfactory experience with performance of the EU ETS so far. Second, a “package approach” where the EU ETS reform was integrated into wider energy and climate policy facilitated agreement on the changes. Third, changes in the position of nonstate actors and a desire to affect the international climate negotiations contributed to the reform.



Skjærseth, Jon Birger
'EU Emissions Trading: Legitimacy and Stringency'
Environmental Policy and Governance, Vol 20, No 5, 2010, pp. 295-308.
> Purchase original article here

In December 2008, the EU Emissions Trading System (EU ETS) was signifi cantly revised and strengthened. This article explores the basis for, and the consequences of, the revision for legitimacy. The key to legitimate EU governance is seen in the convergence of different sources of legitimacy at various levels of society. In addition to member-state consent, participation of non-state actors, democracy, expertise and effectiveness are of relevance.The first conclusion is that the recent revision of the EU ETS has indeed been grounded in a broader multilevel legitimacy basis. Second, the system faces signifi cant challenges with regard to carbon markets and effectiveness, which could reduce its legitimacy in the long term.



Buan, Inga Fritzen, Tor Håkon Inderberg and Svein Vigeland Rottem
Globale og regionale følger av klimaendringer. Konsekvenser for Norge ('Global and Regional Ramifications of Climate Change. Consequenses for Norway')
FNI Report 12/2010. Lysaker, FNI, 2010, 76 p. In Norwegian.
> Download full-text version (PDF)

There is a need for more knowledge on how climate change will affect the international society and what consequences this in turn will have for Norway. This report seeks to answer the questions of, first, how global and regional climate changes can come to affect the Norwegian society, and second, what the relevant arenas for meeting these challenges are. The report is part of a larger body of scientific analyses aimed at assessing the vulnerability of the Norwegian society to the adverse effects of climate change and the consequent needs for adaptive measures. Topics covered include increased activity in the Arctic; climate change as non-traditional security threat; migration and refugees; foreign aid and development cooperation; implications for food and water supply; the roles of international agencies and non-governmental actors, and more. It also covers internal challenges in terms of critical infrastructure (in transport, power supply, and telecommunications) and in regard to health concerns. The report also differentiates between ethical obligations and instrumental challenges.



Kjærnet, Heidi
'Svart gull, svart samvittighet?' ('Black Gold, Black Conscience?')
Internasjonal Politikk, Vol 68, No 2, 2010, pp. 295-303. In Norwegian.
> Purchase the original article here or or download the post-print version here

The article reviews three recent Norwegian-language books on oil and gas developments (by Helge Ryggvik, Gudmund Skjeldal and Unni Berge and Simen Sætre, all published in 2009). The books are analysed in the context of the lacking critical debate about the power of the petroleum industry in Norway, and challenges the conventional view of Norway as a success case in petroleum sector management, frequently referred to as the only petroleum producing country that has escaped the 'resource curse'. The article proposes three subjects for public and academic scrutiny: The power relations in the Norwegian petroleum sector, the paradox of Norway's active rhetoric on environmental issues and status as petroleum producer, and the challenges involved in the international expansion of the Norwegian petroleum industry.



Skjærseth, Jon Birger and Jørgen Wettestad
'The EU Emissions Trading System Revised (Directive 2009/29/EC)'
In Oberthur, S. and M. Pallemaerts (eds), The New Climate Policies of the European Union. Brussels, VUB Press, 2010, pp. 65-93.
> For orders and more information, see VUB Press' website

This article assesses the significant changes in the EU Emissions Trading System (EU ETS) for the 2013-2020 phase which were adopted in 2008, and explains why these changes occurred. The combination of a more stringent EU-wide cap, allocation of emission allowances for payment, and limits on imports of credits from third countries have strengthened the system for the post-2012 period. This will promote reduction in greenhouse gases compared to the old system. The main reasons for these changes are first, changes in the positions of the member states due to unsatisfactory experience with the EU ETS performance so far. Secondly, a ‘package approach’ where the EU ETS reform was integrated into wider energy and climate policy facilitated agreement on the reform. In addition, changes in the position of non-state actors and a desire to affect the international climate negotiations contributed to the reform.



Skjærseth, Jon Birger and Jørgen Wettestad
'Making the EU Emissions Trading System: The European Commission as an Entrepreneurial Epistemic Leader'
Global Environmental Change, Vol 20, No 2, 2010, pp. 314-321.
> Download full-text post-print version (PDF) or access original publication here (subscribers only)

The EU has developed the first and largest international emissions trading system in the world. This development is puzzling due to the EU’s scepticism to international emissions trading in greenhouse gases (GHGs) in the run-up to the 1997 Kyoto Protocol. This article analyses how the EU ETS was initiated in the first place mainly from the perspectives of Liberal Intergovernmentalism (LI) and Multi-level Governance (MLG). LI emphasises change in the positions of the EU member states as the key to understand what happened and why, whereas MLG opens up for change in the position of supranational entrepreneurial leaders as the key explanation. The main conclusion is that entrepreneurial epistemic leadership exercised by the European Commission was crucial for making the EU ETS. The principal means of leadership involved building up independent expertise on how an EU ETS could be designed, and mobilizing support from state and non-state actors at various levels of decision-making. This type of leadership may be needed more generally to deal with challenges characterized by high scientific uncertainty and social complexity in which learning is pertinent, such as climate change.



Buan, Inga Fritzen, Per Ove Eikeland and Tor Håkon Inderberg
Rammebetingelser for utbygging av fornybar energi i Norge, Sverige og Skottland: Sammenligning av faktorer som motiverer og modererer investeringer ('Framework Conditions for Development of Renewable Energy in Norway, Sweden and Scotland: Comparison of Factors that Motivate and Moderate Investments')
FNI Report 6/2010. Lysaker, FNI, 2010, 125 p. In Norwegian.
> Download full-text version (PDF)

The report compares the national regulatory framework for investors in renewable energy (hydropower, wind power and biomass-based energy production) in Norway, Sweden and Scotland. Factors investigated include national support systems for renewable energy, aspects of the consents process, aspects of national area planning and conditions for access to the grid for producers of renewable electricity. The report observes differences in investment rates in renewable energy between the countries and discusses how the different factors in combination could explain why investment rates have turned out differently. The report observes variation in all factors between the countries and concludes that variation in national support systems, causing variation in profitability of investments, appears with the most significant effect on investment rates. When profitable investment exist, the report discusses how cumbersome consents processes, lack of set-aside areas for renewable energy investments in local planning and uncertainties concerning grid access can add risks and moderate the rate of investments.



Boasson, Elin Lerum and Jørgen Wettestad
Understanding the Differing Governance of EU Emissions Trading and Renewables: Feedback Mechanisms and Policy Entrepreneurs
FNI Report 2/2010. Lysaker, FNI, 2010, 34 p.
> Download full-text version (PDF)

This paper presents a comparative study of two central EU climate policies: the revised Emissions Trading System (ETS), and the revised Renewable Energy Directive (RES). Both were originally developed in the early 2000s and revised policies were adopted in December 2008. While the ETS from 2013 on will have a quite centralized and market-streamlined design, the revised RES stands forward as a more decentralized and technology-focused policy. Differing institutional feed-back mechanisms and related roles of policy entrepreneurs can shed considerable light on these policy differences. Due to member states’ cautiousness and contrary to the preferences of the Commission, the initial ETS was designed as a rather decentralized and ‘politicized’ market system, creating a malfunctioning institutional dynamic. In the revision process, the Commission skillfully highlighted this ineffective dynamic to win support for a much more centralized and market-streamlined approach. In the case of RES, national technology-specific support schemes and the strong links between the renewables industry and member states promoted the converse outcome: decentralization and technology development. Members of the European Parliament utilized these mechanisms through policy networking, while the Commission successfully used developments within the global climate regime to induce some degree of centralization.



Whist, Bendik Solum
'Nord Stream: A Litmus Test for Intra-EU Solidarity?'
In Kasekamp, Andres (ed), Estonian Foreign Policy Yearbook 2009. Tallinn, Estonian Foreign Policy Institute, 2009, pp. 75-122.
> Download the chapter

The planned Nord Stream pipeline through the Baltic Sea, connecting Russia directly to the German market, has proven to be a hot topic within the EU since the planning started in 2005. Whereas the "old" members of the Community (most notably Germany) have argued that the planned pipeline will increase energy security for the EU as a whole, many of the new member states in Central and Eastern Europe have argued that the project divides Europe, and that Germany has put its own interests before those of the Community. This article aims to explain why Nord Stream has become such a debated issue within the EU. The sources include several first-hand interviews with researchers and government officials in the Baltic Sea region.



Skjærseth, Jon Birger
'Exploring the Consequences of Soft Law and Hard Law: Implementing International Nutrient Commitments in Norwegian Agriculture'
International Environmental Agreements, Vol 10, No 1, 2010, pp. 1-14.
> Access full-text version here (subscribers only)

The study of hard law and soft law in international environmental cooperation has mainly focused on why, and under what conditions, states choose one form of law in preference to another. This article develops an analytical framework for exploring the consequences of such choices. The framework is applied to implementation of international nutrient commitments in Norwegian agriculture from 1987 until 2007. Agriculture is the most important source of nitrogen inputs and eutrophication problems in the marine environment in Norway and Europe. It is concluded that:
(1) The consequences of hard and soft international law depend heavily on how they interact with changing national conditions. Some of these conditions can be deliberately changed to facilitate synergetic interaction between national conditions and international law;
(2) Under favourable conditions, soft law can have a significant impact even when costly action is required and resistance from target groups are strong.
These observations are particularly interesting in light of the recent decision to end the soft law North Sea Conference process.



Flåm, Karoline Hægstad
'EU Environmental State Aid Policy: Wide Implications, Narrow Participation?'
Environmental Policy and Governance, Vol 19, No 5, 2009, pp. 336-349.
> Access full-text version here (subscribers only)

This article investigates the 2008 reform of the EU's environmental state aid guidelines, with an eye to determining the degree of external pressure and lobbying towards environmental state aid policies. What is found is a strikingly low level of external pressure on the policy field, not least on the part of the private sector. In fact, EU environmental state aid policy is largely the making of a few Commission officials, without much external interference. The article discusses possible reasons for this, and asks whether state aid policy-making might be marked less by clear and established stakeholder interests or stakeholders' utility maximizing, and more by stakeholders constrained by bounded rationality.



Nilsson, Måns
New Dawn for Electricity? EU Policy and the Changing Decision Space for Electricity Production in Sweden
FNI Report 11/2009. Lysaker, FNI, 2009, 32 p.
> Download full-text version (PDF)

The European Union has taken an increasing interest in governing the energy sector in its Member States. However, EU still competes with national-level policies as well as sectoral organizational fields with sticky institutions, norms and knowledge. Therefore, despite its high ambitions in the electricity field, for instance in the promotion of renewable sources and market reform, it is not clear whether the EU really exerts a strong influence, and if there is such an influence, the processes of influence and “filtering” through to national political and industrial structures are not well understood. This paper examines a recent strategic change amongst national actors in Sweden in the energy sector; the decision space for investment in electricity. It examines the influence of European policy change, national energy-political change and organizational field-level developments in enhancing this decision space. It finds that European policy has rarely been very coercive, partly because Sweden has been a forerunner both on electricity market reform and renewable energy promotion, but that its influence is notable both on the market mechanism, directly through its emissions trading directive and more indirectly through signalling its intentions and long-term goals. Still, it appears that domestic developments, both in the cognitive and normative perceptions of actors in the organizational field, and in the national political context remain more instrumental determinants of the changed decision space.



Wettestad, Jørgen
'EU Energy-Intensive Industries and Emission Trading: Losers Becoming Winners?'
Environmental Policy and Governance, Vol 19, No 5, 2009, pp. 309-320.
> Access full-text version here (subscribers only)

The EU Emissions Trading System (ETS) initially treated power producers and energy-intensive industries similarly, despite clear structural differences between these industries regarding e.g. pass through of costs. Hence, the energy-intensive industries could be seen as losing out in the internal distribution. In the January 2008 proposal for a reformed ETS post-2012, a differentiated system was proposed where the energy-intensive industries would come out relatively much better. Why is that? Although power producers still have a dominant position in the system, the increasing consensus about windfall profits has weakened their standing. Conversely, increasing attention to such profits and not least the possibility of global carbon leakage has strengthened the case of energy-intensive industries at both national and EU levels. These industries have become more active in EU processes and somewhat better organised. Finally, growing fear of lax global climate policies has strengthened the case of these industries further.



Boasson, Elin Lerum
Norsk byggenergipolitikk: Mangfoldig og inkonsistent – Working paper ('Norwegian Energy Performance of Buildings Policy: Diverse and Inconsistent – Working Paper')
FNI Report 10/2009. Lysaker, FNI, 2009, 19 p. In Norwegian.
> Download full-text version (PDF)

Historically, Norwegian building-construction policies have been part of the state’s welfare policy. After 2000, a new conceptualisation of buildings emerged in Europe. Buildings were now regarded as a part of the energy system. The term ‘energy performance of buildings’ covers both the thermal quality of the building envelope and on-site energy production. In 2002 the EU developed an Energy Performance of Buildings Directive, while EU state aid regulations constrained national support schemes directed at fostering buildings with high energy performance. The building construction industry is a loosely coupled industry, and by year 2000 building construction was rather de-politicized. Although governmental regulations tend to be developed by governmental organisations and research communities in collaboration, political executives have, from time to time after year 2000, engaged directly in the development policy regarding energy performance of buildings. This report explores: 1) Why have Norwegian governments, in the period between 2000 and 2008, developed four strains of policies directed toward promoting buildings with high energy performance? 2) How did the European environment, the building construction sector (industry and governmental regulators) and the Norwegian governmental hierarchical steering intervene and shape the outcomes?



Wettestad, Jørgen
'Interaction Between EU Carbon Trading and the International Climate Regime: Synergies and Learning'
International Environmental Agreements, Vol 9, No 4, 2009, pp. 393-408.
> Download full-text post-print version (PDF) or purchase the final article here

This article discusses the developing interaction and cross-scale effects between the company-focused EU emissions trading (ETS) and the country focused international climate regime, in particular the Kyoto Protocol. Key questions discussed are, first, what has been the character of selected interactions so far – synergistic or disruptive? Second, what kinds of interaction mechanisms have been driving the interactions –normative, cognitive or utilitarian? Third, with regard to cross-scale effects, has significant learning taken place between institutions at different levels? Four sub-cases of interaction are analysed: First, the interaction between the Kyoto Protocol as source and the ETS as target which started after the adoption of the Protocol in late 1997. Second, a next phase of interaction started in 2004 when the EU states started to develop national allocation plans (NAPs) where bringing in credits/allowances developed under the Clean Development Mechanism (CDM) became one compliance strategy. Third, the opposite relationship is examined. i.e. with the ETS as the source and the Kyoto Protocol institutions as targets. The first phase started after the adoption of the 2003 ET Directive and with the developing ETS possibly leading to a more rapid and extensive CDM development than would otherwise have been the case. Fourth and finally, a separate case of interaction deals with the possible role the ETS plays and could play for an emerging global carbon market. Key findings are that these cases are mainly of a synergistic nature. Furthermore, in order to understand the driving forces, it is necessary to draw upon several interaction mechanisms, particularly cognitive and utilitarian ones. Finally, as to cross-scale learning, the post-2012 global regime may avoid pitfalls related to the allocation process experienced by the ETS. But the learning and diffusion potential should not be exaggerated.



Boasson, Elin Lerum and Jørgen Wettestad
'Standardised CSR and Climate Performance: Why is Shell Willing, but Hydro Reluctant?'
In Barth, Regine and Franziska Wolff (eds), Corporate Social Responsibility in Europe: Rhetoric and Realities. Cheltenham, Edward Elgar, 2009, pp. 133-156.
> For orders and more information, see Edward Elgar's website

In this chapter we first explore whether similar CSR instruments lead to similar climate-related rules and practices in the two companies. Both Hydro and Shell adhere to the Global Compact (GC), the Global Reporting Initiative (GRI), the Carbon Disclosure Project (CDP) and the Global Gas Flaring Reduction Public-Private Partnership (GGFR). The report concludes that the GC has not rendered any tangible effects in either of the companies. Concerning the other instruments, Hydro has only followed the instrument requirements that fit their initial approach, and refrained from all deviating requirements. Shell has been more malleable, but we have noted few effects on the actual emissions and business portfolio resulting from the instrument adherence.

Second, we assess how the differing results of the similar CSR-portfolio may be explained. The reluctant attitude of the leaders in Hydro and the strong CSR motivation of Shell’s executives result in significant differences. Hydro executives are able to constrain the effects of the instrument adherence. With Shell we note the opposite pattern: its leaders promoted the instruments to be translated into internal rules, but a general lack of hierarchical structures hinders them from governing the conduct of various sub-organisations. The very diversity of the Shell culture helps to explain why the efforts of its executives have resulted in limited impact. The strength of the Hydro culture makes the corporation resistant to the instruments. Moreover, Hydro is strikingly shielded by virtue of its strong position in Norway. In contrast, Shell is more strongly affected by the global field of petroleum and the global field of CSR. While the former hampers the instruments in rendering effects, the latter contributes to explaining why the two companies decided to adhere to the instruments in the first place.



Boasson, Elin Lerum, Jørgen Wettestad and Maria Bohn
'CSR in the European Oil Sector: A Mapping of Company Perceptions'
In Barth, Regine and Franziska Wolff (eds), Corporate Social Responsibility in Europe: Rhetoric and Realities. Cheltenham, Edward Elgar, 2009, pp. 65-79.
> For orders and more information, see Edward Elgar's website

This report sums up and discusses the main results of an oil sector CSR survey, encompassing nine European oil companies. With regard to main findings, there is no consensus on how the oil companies’ societal responsibilities are to be understood or described. A range of terms is applied, with the terms ‘Corporate Responsibility’ and ‘Corporate Social Responsibility’ as the most popular ones. The companies do not perceive that CSR primarily pertains to efforts that go beyond formal legal compliance, but rather give prime emphasis to CSR as a tool to achieve compliance with mandatory social and environmental legislation. It is clear that climate change has established itself as the most important societal issue for European oil companies, while countering bribery also has fairly high strategic importance. Regarding instruments adhered to, the number is quite impressive, with six companies adhering to 15 or more. The most popular instruments are the Global Compact, OECD Guidelines, Responsible Care, ISO 14001, and the Global Reporting Initiative. As to the contribution of CSR instruments to performance, the most important ones seem to be the ‘company-specific’ instruments and to a much lesser degree the ‘standardized’ instruments.



Skjærseth, Jon Birger and Jørgen Wettestad
'A Framework for Assessing the Sustainability Impact of CSR'
In Barth, Regine and Franziska Wolff (eds), Corporate Social Responsibility in Europe: Rhetoric and Realities. Cheltenham, Edward Elgar, 2009, pp. 26-38.
> For orders and more information, see Edward Elgar's website

If Corporate Social Responsibility (CSR) wants to be recognised as a substantive and not only rhetorical exercise, there is a need to show that it indeed achieves what its proponents claim: That companies, by voluntarily adopting and integrating social and environmental concerns into their business operations, add to social and environmental improvement, i.e. sustainability. But what activities 'count' as CSR in the first place? How can we determine the sustainability impact of CSR? And how do we establish causal relationships to make sure that e.g. the improved environmental performance of a company, which it may claim to result from its beyond compliance efforts, is indeed caused by the corporation taking on specific environmental responsibility - and not merely for instance by closing an economically unviable site? The purpose of this chapter is to tackle these questions.



Inderberg, Tor Håkon and Per Ove Eikeland
'Limits to Adaptation: Analysing Institutional Constraints'
In Adger, N., I. Lorenzoni, and K. O'Brien (eds), Adapting to Climate Change – Thresholds, Values, Governance. Cambridge, Cambridge University Press, 2009, pp. 433-447.

This book chapter develops an institutional approach and seeks to apply it to analyse constraints to adaptive capacity to climate change in the national energy system. Our framework views the national energy system as a complex socio-technical system and draws on institutional organisation theory. It views the national energy system as a potential organisational field with interacting agents bound together by institutional factors constraining adaptation, not only in single organisations but the entire system. The main questions addressed are: How will an institutional theoretical framework add to our understanding of adaptive capacity and its limits? What are the most important institutional barriers or limits to adaptation in a national energy sector, illustrated by the Norwegian situation? We conclude that even with technological, financial and human resources in place, institutional factors may still hinder their wise deployment and use in climate change adaptation, due to strong path-dependencies. A conscious adaptation strategy needs to be aware of institutions, like norms and values, for legitimacy purposes and for enacting change when they pose barriers to adaptation.



Kolbeinstveit, Atle
Grønne sertifikater: Et norsk perspektiv på saken om et pliktig elsertifikatmarked mellom Sverige og Norge ('Green Certificates: A Norwegian Perspective Regarding a Proposed Common Mandatory Electricity Certificate Market Between Norway and Sweden')
FNI Report 4/2009. Lysaker, FNI, 2009, 90 p. In Norwegian.
> Download full-text version (PDF)

This paper presents a study in a Norwegian perspective of the political proposal for a common mandatory electricity certificate market between Norway and Sweden. The proposal was withdrawn in February 2006. The study examines whether Prime Minister Jens Stoltenberg's second government assessed green certificates as the cause of an unpopular hike in electricity prices, a hypothesis that found some support in this work. Next, it examines the role of the government bureaucracy. A hypothesis is set forth that the government decision followed from standard operational procedures in the bureaucracy. Importantly, the Ministry of Finance and the Ministry of Petroleum and Energy, the most significant bureaucratic agents in our case, made their recommendations based on economic principles, which had become a standard operating procedure for them in Norwegian energy and environmental policies.



Wettestad, Jørgen
'European Climate Policy: Toward Centralized Governance?'
Review of Policy Research, Vol 26, No 3, 2009, pp. 311-328.
> Download full-text post-print version (PDF) or access original publication here (subscribers only)

The EU emissions trading system (ETS) is the first large-scale international emissions trading system and a 'cornerstone' in EU climate policy. A key element in the ETS implementation process is deciding upon the ceiling ('cap') for the emissions included in the ETS. Over time, a significant change and centralisation of this model has taken place. In order to understand this development, we need to acknowledge the increasing acceptance of stronger centralised governance among the member states due to ETS pilot phase problems; take into consideration frustration in the European Commission over complex and differing National Allocation Plans; and add the fact that the Kyoto Protocol target was getting nearer and a good performance of the 'flagship' ETS was becoming increasingly important. Hence, although the case supports the importance of acknowledging the multi-level character of the EU, it still emphasises the key role of changes in member states’ interests and positions for understanding outcomes.



Skjærseth, Jon B. and Jørgen Wettestad
'The Origin, Evolution and Consequences of the EU Emissions Trading System'
Global Environmental Politics, Vol 9, No 2, 2009, pp. 101-123.
> Download full-text version here or access it at the the MIT Press website

The EU Emissions Trading System (EU ETS) is the cornerstone of EU climate policy, a grand policy experiment as the first and biggest international emissions trading system in the world. In this article, we seek to provide a broad overview of the initiation, decision-making and implementation of the EU ETS so far. We explore why the EU changed from being a laggard to become a leader in emissions trading, how it managed to establish the system so rapidly, and the consequences to date, leading up to the 2008 proposal for a revised ET Directive for the post-2012 period. We apply three explanatory approaches, focusing on the role of the EU member states, the EU institutions and the international climate regime, and conclude that all three approaches are needed to understand what happened, how and why. They also reveal that what happened in the early days of developing the system had significant consequences for the problems experienced in practice and the prospects ahead.



Whist, Bendik Solum
'Nord Stream – A Solution or Challenge for the EU?'
In Liuhto, Kari (ed), The EU-Russia Gas Connection: Pipes, Politics and Problems. Electronic Publications of Pan-European Institute 8/2009. Turku, Turku School of Economics, 2009, pp. 166-203.
> Dowload entire report (PDF)

This article is an analysis of the planned gas pipeline from Russia to Germany through the Baltic Sea known as Nord Stream. According to its proponents, most notably Germany, Russia and the pipeline consortium, Nord Stream is a European-scale project that represents an important step on the way towards more security of supply for the European Union. Unfortunately for the backers of the project, however, this view has been highly contested within the EU, where some of the new members have accused Germany of putting its own interests above those of other member states. This article seeks to explain why, from an energy-security point of view, the Nord Stream project has become such a contested issue within the EU. The article is based on a variety of sources, including several first-hand interviews with researchers and government officials in the Baltic Sea region.



Fuglseth, Bente Beckstrøm
Regulative Change Targeting Energy Performance of Buildings in Sweden: Key Drivers and Main Implications
FNI Report 2/2009. Lysaker, FNI, 2009, 23 p.
> Download full-text version (PDF)

This report has explored changes in two regulations targeting energy performance of buildings in Sweden, energy requirements and certification of buildings. The objective has been to investigate the effect of the implementation of the EU directive on energy performance of buildings (EPBD) on these two regulations and to what degree the directive can explain the regulative changes. The analytical framework has also included domestic factors; the influence of the national government and the organizational field. The analysis revealed that whereas the EPBD has acted only as facilitator in connection with the changes in energy requirements, it has been the sole driver of some of the changes in Sweden’s new certification system. Several of the changes during the period studied can however be traced to the national government and the organizational field. But the EPBD has also worked as a facilitator of the changes promoted by domestic actors. The directive has been used to legitimize radical changes that would have been difficult to implement in other ways.



Whist, Bendik Solum
Nord Stream: Not Just a Pipeline. An Analysis of the Political Debates in the Baltic Sea Region Regarding the Planned Gas Pipeline from Russia to Germany
FNI Report 15/2008. Lysaker, FNI, 2008, 77 p.
> Download full-text version (PDF)

This report is an analysis of the planned gas pipeline from Russia to Germany through the Baltic Sea known as Nord Stream. Although not yet realised, the project has, since its birth, been the subject of harsh criticism and opposition by a significant number of states that consider themselves affected by the pipeline. Whereas the Baltic States and Poland have interpreted the pipeline as a politically motivated strategy that will increase Russia’s leverage on them and threaten their energy security, the debate in Sweden was at first mostly concerned with the prospect of increased Russian military presence in the Swedish Exclusive Economic Zone. The potential environmental impact of the pipeline has been, and continues to be, an overarching concern shared by all the littoral states of the Baltic Sea. Proponents of Nord Stream, most notably Germany, Russia and the Nord Stream consortium, have largely dismissed the concerns as unwarranted and argue that the pipeline is a common European project that all EU-members should embrace, as it will provide much-needed gas to an increasingly energy-thirsty union. This report is an extensive study of the divergent attitudes and debates that have surged in the region regarding Nord Stream, and the aim is to provide plausible explanations as to why the interpretations of the project have been so different in the various states. The report is based on a variety of sources, including several first-hand interviews with researchers and government officials in the Baltic Sea region.



Wettestad, Jørgen
Interaction between EU Carbon Trading and International Institutions: Synergies or Disruptions?
EPIGOV Paper No 34. Berlin, Ecologic, 2008, 33 p.
> Download full-text version (PDF)

This paper discusses various dimensions of the developing positive and negative interaction between the company focused EU emissions trading (ETS) and the country focused global carbon trading and other relevant global institutions. More specifically, the following three cases of interaction are analysed: First, the interaction between the Kyoto Protocol (as source) and the ETS as target. The first and seminal phase of this interaction started quite immediately after the adoption of the Protocol in late 1997. A second phase of interaction started in 2004 when the EU states started to develop national allocation plans (NAPs) where bringing in credits/allowances developed under the Clean Development Mechanism (CDM) and (subsequently) Joint Implementation (JI) became one compliance strategy. Second, the opposite relationship is examined. i.e. with the ETS as the source and the Kyoto Protocol institutions as targets. The first phase started after the adoption of the 2003 ET Directive and with the developing ETS possibly leading to a more rapid and extensive CDM development than would otherwise have been the case. A separate case of interaction deals with the possible role the ETS plays and could play for an emerging global carbon market. Third, attention is given to a different and quite recent type of interaction involving the ETS, namely interaction between the ETS and the International Civil Aviation Organization (ICAO).



Wettestad, Jørgen
EU Energy-intensive Industries and Emissions Trading: Losers Becoming Winners?
FNI Report 10/2008. Lysaker, FNI, 2008, 20 p.
> Download full-text version (PDF)

The EU Emissions Trading System (ETS) initially treated power producers and energy-intensive industries similarly, despite clear structural differences between these industries regarding pass through of costs and vulnerability to global competition. Hence, the energy-intensive industries could be seen as losing out in the internal distribution. In the January 2008 proposal for a reformed ETS post-2012, a differentiated system was proposed where the energy-intensive industries come out relatively much better. What is the explanation for the change taking place? Although power producers still have a dominant position in the system, the increasing consensus about windfall profits has weakened their standing. Conversely, the energy-intensive industries have become better organised and more active. This balance shift is first and foremost noticeable in several important EU-level stakeholder consultation processes. Energy-intensive industries have, however, also successfully utilised the national pathway to exert influence on Brussels policy-making. Finally, growing fear of lax global climate policies and related carbon leakage has strengthened the case of these industries further. The latter dimension indicates that although energy-intensive industries have managed to reduce internal distribution anomalies, external challenges remain.



Eikeland, Per Ove
EU Internal Energy Market Policy: New Dynamics in the Brussels Policy Game?
FNI Report 14/2008. Lysaker, FNI, 2008, 67 p.
> Download full-text version (PDF)

The paper analyses the September 2007 European Commission proposal for a third internal energy policy package. It asks if the proposal reflected fundamental changes in the Brussels policy game from 2003, when the existing legislation had been adopted. A multi-level governance approach has inspired this check of alternative propositions. We find that the proposal was primarily the result of greater will on the part of the Commission to pressure unwilling member-state governments. There is also strong evidence that the Commission pursued a new form of multi-level game, pressing non-state agents directly to change the political game at the national level. Our study finally discusses whether different network approaches would add explanatory power to our study, acknowledging that agents working in larger networks could have greater thrust on the Commission. The main conclusion is that EU policy networks have become less stable and more issue-specific, making policy predictions less certain than before.



Boasson, Elin Lerum
Diversification of an Organisational Field: How Europe Promotes and Hampers Domestic Change
FNI Report 6/2008. Lysaker, FNI, 2008, 28 p.
> Download full-text version (PDF)

Better understanding of Europeanisation requires research on national, societal change. This paper presents a theoretical framework that enables assessment of Europeanised change processes within national industries. Empirically it explores how European Union (EU) state aid regulations and European renewable energy trends in conjunction led to diversification among Norwegian stationary energy producers. Key theoretical implications are as follows:
(1) The pattern of interaction between change impulses from the European environment, governmental hierarchical steering and institutional logics within the national organisational field was crucial to the output of the change process.
(2) Misfit between institutional logics at the European level and the organisational field hampers change, rather than promoting it.
(3) The carriers – the actors that bring the European impulses into the organisational field – matter because they translate change impulses in line with their institutional logic.
(4) National politicians are unable to control the process of translating these impulses, and that reduces their political clout.
(5) Europeanisation brings greater challenges to national democratic governance of liberalised industries.



Wettestad, Jørgen
'Reduksjon av langtransportert luftforurensning i Europa' ('Reducing Long-range Transboundary Air Pollution in Europe')
In Andresen, Steinar, Elin Lerum Boasson and Geir Hønneland (eds): Internasjonal miljøpolitikk ('International Environmental Politics'). Bergen, Fagbokforlaget, 2008, pp. 39-54. In Norwegian.
> For orders and more information, see Fagbokforlaget's website

This chapter addresses the evolution and results of the cooperation which has taken place within the Convention on Long-range Transboundary Air Pollution (CLRTAP) in Europe. With regard to the evolution of cooperation, there has been an impressive and steady development of regulatory protocols. The latest and most comprehensive one is the 1999 multi-pollutant Gothenburg Protocol, to be implemented by 2010. As to results, much has been achieved, particularly with regard to reducing emissions of sulphur dioxide (SO2). But improvements are still needed to come down to emission levels in line with critical thresholds in the environment. Norwegian researchers and negotiators have made important contributions to the development of this cooperation. A remaining challenge for Norway is bringing down the emissions of nitrogen oxides (NOx) to the levels prescribed in the Gothenburg Protocol.



Flåm, Karoline Hægstad
EU Environmental State Aid Policy: Wide Implications, Narrow Participation?
FNI Report 13/2008. Lysaker, FNI, 2008, 25 p.
> Download full-text version (PDF)

This article investigates the 2008 reform of the EU’s environmental state aid guidelines, with an eye to determining the degree of external pressure and lobbyism towards environmental state aid policies. What is found is a strikingly low level of external pressure on the policy-field, not least on the part of the private sector. In fact, EU environmental state aid policy is largely the making of a few Commission officials, without much external ‘interference’. The article discusses possible reasons for this, and asks whether state aid policy-making might be marked less by clear and established interests and utility maximising, and more by actors constrained by complexity and bounded rationality.



Nilsson, Måns, Lars J. Nilsson and Karin Ericsson
Rapid Turns in European Renewable Energy Policy: Advocacy and Framing of the Proposed Trading of Guarantees of Origin
FNI Report 9/2008. Lysaker, FNI, 2008, 33 p.
> Download full-text version (PDF)

The EU has assumed ambitious targets and strategies for the promotion of renewable sources of energy (RES) binding to all its member states. This report sets out to examine the proposed EU-wide policy instrument designed to help achieve the targets on renewable electricity and heat - the trading of Guarantees of Origin (GO). It analyses the fate of the GO trading proposal in the European policy-making machinery during 2007 and 2008. It first discusses its origins, key components and points of contention, and then examines key factors behind the policy development leading first to its development and subsequently to its abandonment in 2008. Addressing these factors, the report explores first the near-term policy-making process before and after the proposal on GO trading was tabled in January 2008, focusing on processes in the European bureaucracy and how they were influenced by different interest groups and member state governments. It then takes a step back and looks at how competing policy frames over time have shaped the GO instrument debate. Results show how a strong internal market frame acted as a primary driving force in the Commission throughout the 2000s to promote the GO trading instrument. The subsequent collapse of the GO trading proposal can be largely attributed to a) the lack of a strong lobby in favour of GO, b) the accumulated experience with and institutionalisation of national RES support policy, and c) growing general political concerns for supply security, innovation and competitiveness. In the end, the fall of the GO trading instrument is indicative of how the underlying political battle line between advocates of the European internal market and guardians of national interests has moved in favour of the latter in recent years.



Flåm, Karoline Hægstad
'Restricting the Import of 'Emission Credits' in the EU: A Power Struggle between States and Institutions'
International Environmental Agreements: Politics, Law and Economics, Vol 9, No 1, 2009, pp. 23-38.
> Access full-text version here (subscribers only)

This article examines the development of a cap on the use of so-called 'project credits' in the EU emissions trading scheme. It investigates how the issue of such a limit was addressed in the negotiations of the Linking Directive, and how it has been dealt with in the later implementation of this directive. The article applies two explanatory approaches: One based on intergovernmentalist theory, assuming that the cap reflected the preferences of the EU Member States; and one based on the multi-level governance model, assuming that the cap expressed the preferences of EU institutions rather than Member States. What is found is a two-stage development: during the negotiations of the Linking Directive, Member States managed to secure a no-cap solution allowing extensive use of the project credits. In the later implementation phase, however, when the emissions trading scheme was up and running and a certain legitimacy for the system had been established, the Commission managed to 'regain control' by bringing back a cap. Thus, the project credit cap – and by that, the very nature of the EU emissions trading scheme – has been the subject of a continuing power struggle within the EU – and different theoretical perspectives explain different stages of this process.



Korppoo, Anna and Arild Moe
'Joint Implementation in Ukraine: National Benefits and Implications for Further Climate Pacts'
Climate Policy, Vol 8, No 3, 2008, pp. 305-316.
> Access full-text version here (subscribers only)

Ukraine has successfully established a domestic institutional system for approving Joint Implementation (JI) projects under the Kyoto Protocol, and has shown that the system is functional by issuing approval letters. Several JI projects are being implemented in Ukraine. Project developers widely regard Ukraine as the best host country for JI projects, although the project approval system is slow and bureaucratic. Barriers were identified by this study, but the drivers of JI in Ukraine are stronger, and Ukraine has emerged as a highly competitive JI host. JI is likely to provide some support to Ukrainian participation in the future international climate regime, especially as the government is calling for the continuation of JI or other similar mechanisms to be used as a tool to finance emission reductions. This article argues that the major contribution of JI in Ukraine relates to capacity building, and the readiness of the country to participate in international climate policies in the future, rather than the financial and social benefits of JI.



Skjærseth, Jon Birger and Jørgen Wettestad
'Implementing EU Emissions Trading: Success or Failure?'
International Environmental Agreements, Vol 8, No 3, 2008, pp. 275-290.
> Download full-text post-print version (PDF) or access original publication here (subscribers only)

This article assesses and explains the implementation of the EU emissions trading scheme (EU ETS). It argues that implementation in terms of ambitiousness has been only moderately successful so far, but significant differences between the Member States are also observed. Similarities and differences are then explained within a multi-level governance approach emphasizing the need to search for explanations at national, EU, and global levels. The EU ETS case shows that the multi-level governance approach can be as relevant for understanding implementation as for explaining policy-making. In addition to factors located at the national level, the decentralized nature of the EU scheme itself is important for understanding how the system works in practice. At the global level, the link to the Clean Development Mechanism under the Kyoto Protocol is particularly important for determining how well the EU ETS will perform in the future.



Korppoo, Anna and Arild Moe
Russian Gas Pipeline Projects under Track 2: Case Study of the Dominant Project Type
Briefing Paper. London, Climate Strategies, 2008, 16 p.
> Download paper from the Climate Strategies website

More than half of the Russian JI project portfolio consists of projects for refurbishing gas distribution pipelines. Some of these are very large – up to 25 Mt in the case of the Stavropol project. Together they offer a very interesting potential for emission reductions and joint implementation. They do, however, involve complicated issues related to baseline setting and additionality. The paper is based on interviews with various stakeholders, project developers active in Russia and experts on joint implementation (JI), as well as on a review of the relevant literature and project documentation. We focus on the following questions:
  What is the institutional structure of the control of Russian gas distribution pipelines?
  How is the additionality of the projects defined?
  What are the main arguments used to justify their additionality?
  What are the main arguments against justification of their additionality?



Skjærseth, Jon Birger and Jørgen Wettestad
EU Emissions Trading: Initiation, Decision-making and Implementation
Aldershot, Ashgate, 2008, 216 p.
> For more information and orders, contact Ashgate
> Read book review (in Journal of Contemporary European Studies)
> Read book review (in Environmental Politics)

The EU was a leading skeptic to international emissions trading of greenhouse gases (GHGs) in the run-up to the 1997 Kyoto Protocol. Four years later, the European Commission proposed the world's first international emissions trading system (EU ETS). The aim of this book is to understand the EU's turn-about and its consequences. Why did the EU change its position? How did it manage to establish the world's first international emissions trading system so rapidly? What are the consequences so far? These questions are analyzed by viewing various EU policy making phases from the perspective of the EU member states, the EU institutions and European industry and environmental organizations, and from that of the international climate regime, particularly the Kyoto Protocol.

The main conclusions are first, that the EU changed its position due to the Kyoto Protocol and more importantly the entrepreneurial leadership exercised by the European Commission. The Commission initiated the EU ETS, built independent knowledge and crafted support for the system among stakeholders. Second, the system could be established rapidly since the member states got away with a decentralized system providing significant autonomy in setting the reduction targets. The US exit from the Kyoto Protocol and the Kyoto commitments also contributed to strengthen support for the ETS. Finally, the main implementation problem so far has been too lenient emission targets for the installations covered by the system leading to a collapse in the carbon price. This problem can largely be traced back to the decentralized nature of the system providing each member state with incentives to protect their own industries. The Commission has responded by centralizing the system and pushing the member-states towards more ambitious targets.



Korppoo, Anna
JI Approval System in Ukraine: Outline and Experiences
Briefing Paper. London, Climate Strategies, 2008, 9 p.
> Download paper from the Climate Strategies website

Ukraine started to approve JI projects in May 2007. As of November 2007, 13 projects had been approved by the Ukrainian government, and four more have been submitted to the JISC pipeline by project developers. This paper examines the Ukrainian JI project approval system and its apparent success. Ukraine has considerable potential for participating in the Kyoto mechanisms, as the country’s emissions remained at 45% of the 1990 base-year level in 2005. This paper describes the JI approval system established by Ukraine, focusing on the following aspects:
   legislation adopted
   Ukrainian JI project cycle
   priorities of the Ukrainian government on JI
   problems experienced.



Korppoo, Anna
Typical JI Projects in Ukraine: Three Case Studies
Briefing Paper. London, Climate Strategies, 2008, 13 p.
> Download paper from the Climate Strategies website

Joint Implementation (JI) has started successfully in Ukraine, with 19 projects submitted to the JISC pipeline as of December 2007. The Ukrainian portfolio is dominated by few project types.

This paper presents three case studies of Ukrainian Joint Implementation projects. The analysis is based on interviews with project stakeholders and public presentations of the case projects. The main questions in focus here are as follows:
   What are the typical JI projects in Ukraine?
   What similarities and differences are there between the case projects?
   How has the financing of the projects been arranged?
   Have they been implemented, and how long did it take to launch a project?
   Have the same problems or barriers been experienced in all cases?



Korppoo, Anna and Svetlana Tashchilova
The Belarusian Amendment to Annex B: A Serious Commitment or Just Hot Air?
Briefing Paper. London, Climate Strategies, 2007, 12 p.
> Download paper from the Climate Strategies website



Moe, Arild
'Sannsynlige utviklingstrekk i Russlands olje- og gasspolitikk i årene som kommer, og deres betydning for norske energiinteresser' ('Probable Developments in Russia's Oil and Gas Policy in the Coming Years and Their Significance for Norwegian Energy Interests')
In Globale Norge: Hva nå? Energipolitiske interesser og utfordringer ('Global Norway: What Now? Energy Interests and Energy Challenges'). Oslo, Norwegian Ministry of Foreign Affairs, 2007, pp. 53-58. In Norwegian.
> Read the chapter at the Ministry of Foreign Affairs' website



Eikeland, Per Ove
'Policy-utvikling i EU på olje- og gassområdet' ('EU Oil- and Gas Policy Development')
In Globale Norge: Hva nå? Energipolitiske interesser og utfordringer ('Global Norway: What Now? Energy Interests and Energy Challenges'). Oslo, Norwegian Ministry of Foreign Affairs, 2007, pp. 119-125. In Norwegian.
> Read the chapter at the Ministry of Foreign Affairs' website



Korppoo, Anna
Joint implementation in Russia and Ukraine: Review of projects submitted to JISC
Briefing Paper. London, Climate Strategies, 2007, 14 p.
> Download paper from the Climate Strategies website



Korppoo, Anna and Arild Moe
Russian JI Procedures: More Problems than Solutions?
Briefing Paper. London, Climate Strategies, 2007, 6 p.
> Download paper from the Climate Strategies website



Gulbrandsen, Lars H. and Arild Moe
'BP in Azerbaijan: A Test Case of the Potential and Limits of the CSR Agenda?'
Third World Quarterly, Vol 28, No 4, 2007, pp. 813-830.
> Download full-text post-print version (PDF) or access original publication here (subscribers only)



Korppoo, Anna and Arild Moe
Russian Climate Politics: Light at the End of the Tunnel?
Briefing Paper. London, Climate Strategies, 2007, 10 p.
> Download paper from the Climate Strategies website



Skjærseth, Jon B. and Jørgen Wettestad
'Is EU Enlargement Bad for Environmental Policy? Confronting Gloomy Expectations with Evidence'
International Environmental Agreements, Vol 7, No 3, 2007, pp. 263-280.
> Download full-text post-print version (PDF) or access original publication here (subscribers only)



Eikeland, Per Ove
'Downstream Natural Gas in Europe - High Hopes Dashed for Upstream Oil and Gas Companies'
Energy Policy, Vol 35, No 1, 2007, pp. 227-237.
> Download full-text preprint version (PDF) or access final version here (subscribers only)



Sæverud, Ingvild Andreassen and Jørgen Wettestad
'Norway and Emissions Trading: From Global Front-runner to EU Follower'
International Environmental Agreements, Vol 6, No 1, 2006, pp. 91-108.
> Download fulltext version (PDF) (This is the uncorrected proof version – the original publication is available at http://www.springerlink.com)



Sæverud, Ingvild Andreassen and Arild Moe
'Carbon Storage and Climate Change - The Case of Norway'
In Sugiyama, Taishi (ed), Governing Climate: The Struggle for a Global Framework Beyond Kyoto. Winnipeg, Canada, International Institute for Sustainable Development (IISD), 2005, pp. 76-86.
> Download entire book
> Download chapter, published as FNI Report 11/2005
Top
 More European energy and environmental politics publications
on FNI's European energy and environmental politics page


 More publication summaries:
 Global governance and sustainable development
 Law of the Sea and marine affairs
 Biodiversity and biosafety
 Polar and Russian politics
 European energy and environmental politics
 Chinese energy and environmental politics


 Free e-subscription to FNI's Europe-related publications:

Click here to register.


Fridtjof Nansen Institute
P.O. Box 326, 1326 Lysaker, Norway. Tel: (+47) 67111900 / E-mail: post (+@fni.no)