Home  About FNI  Research  Publications  Staff  News & events  Contact		FNI PUBLICATION SUMMARIES European Energy and Environmental Politics 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') Lysaker, FNI, 2010, 85 p. In Norwegian. The report maps relevant global and regional ramifications of climate change for Norway. It was commissioned by the public comittee "NOU Klimatilpasning" in the work with a official report on adaptation to climate change and Norway. The report focuses on indirect and external ramifications that may affect Norway, and makes a distinction between ideal obligations and instrumental consequences. Sources of vulnerability to climate change may be external (intsrumental consequences) influencing states indirectly through various mechanisms. At the same time, climate change can influence Norway through ideal obligations, in particular to less developed countries. The report addresses the complexity of climate change ramifications without making strong conclusions. It thus underscores the uncertainty of early conclusions about the causal relationship between climate change and social systems. 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. > Access full-text version here (subscribers only) 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. > For more information and orders, see Cambridge University Press' website 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. Fuglseth, Bente Beckstrøm Driving Forces and Barriers to Improved Energy Performance of Buildings: An Analysis of Energy Performance of Swedish Buildings, 2000-2006 FNI Report 5/2008. Lysaker, FNI, 2008, 92 p. > Download full-text version (PDF) The building sector is responsible for a substantial part of energy use and green house gas emissions in Europe. This report explores driving forces and barriers to improved energy performance of buildings, using the Swedish building sector as a case. The development of energy performance of buildings in Sweden from 2000 until 2006 is explored by applying a threefold understanding of energy performance of buildings: substitution from fossil fuels to renewable energy, conversion from electrical heating to thermal energy and reduction in energy demand. Three explanatory approaches are used to analyse driving forces and barriers to improved energy performance: the techno-economic approach stresses the physical aspects of infrastructure and technologies, the institutional approach emphasizes the role of institutional factors, while the regulative approach focuses on formal rules and laws. The study concludes that all factors have promoted substitution of fossil fuels with renewable energy, while they have prevented conversion from electrical heating to thermal energy and reduction in energy demand. 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 Belarus has been at the margin of the Kyoto and Joint Implementation discussion so far. The presumption of investors may be that the same problems experienced with the Russian and Ukrainian governments and JI approval systems would be repeated with Belarus, just with the addition of the practical and political difficulties related to cooperation with an authoritarian regime. However, Belarus has recently initiated a novel process to join the Annex B of the Kyoto Protocol in order to become eligible to trade. This paper focuses on:   Why Belarus wants to join the Annex B of the Kyoto Protocol.   The potential of the Belarusian amendment to the Annex B of the Kyoto Protocol to succeed.   Belarusian preparedness and strategies on the Kyoto mechanisms.   Issues for and against the Belarusian participation in the Kyoto mechanisms during the first commitment period. 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 The Russian oil industry witnessed a steep production growth in the period 1999 to 2005, bringing output back to the level from before the collapse of the USSR. Since 2005 the output growth has levelled out, however, and there is growing concern in Russia for the prospects in the years ahead due to under-investment in renewal and new production capacity as well as little exploration activity. Extensive geological mapping from the Soviet period gives all reason to expect that new fields eventually will be brought on stream, the problem is the considerable time it will take to do so. The gas industry faces a similar paradox of an impressive resource base, but little investment in field development. The dominant policy trend over the last years has been to transfer assets to state controlled companies and to increase state influence over the remaining private companies. The focus of the policy has not been to establish a sustainable and balanced resource management system, but to develop a new system for revenue collection and distribution of rent among state structures. To solve the underlying roblems in resource management a new approach will have to be developed, which could include new opportunities for foreign companies. 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 The paper reviews shortly the development in EU energy policy in the period 2000-2007, the new priorities evolving concerning security of supply and climate change mitigation as well as the policy signals given in the green book 'A European Strategy for Sustainable, Competitive and Secure Energy' in 2006 and the *Strategic energy review' in 2007. Next, the paper discusses consequences of the changes in EU policy for selected Norwegian oil- and gas-related interests. Rottem, Svein Vigeland and Arild Moe Climate Change in the North and the Oil Industry FNI Report 9/2007. Lysaker, FNI, 2007, 21 p. > Download full-text version (PDF) How will climate change affect oil industry operations in the High North? The report analyses impacts in the North that are different from, or come in addition to, the impacts felt globally, from two angles: One outlining climate-related changes in nature and their impacts on oil industry operations, and the second discussing actual and possible policy responses and their impact. Forecasts and scenarios developed by climate scientists indicate that the situation is volatile. The climate and weather will be less predictable. Although the long term tendency is clear, there will be large variations in ice from year to year, with some seasons colder and with more ice than what has been ‘normal’ in recent years. The industry cannot count on areas remaining ice-free, and when it comes to fixed installations it will have to prepare for a situation in 2030 with maximum ice not much different than today. Climate policies are not likely to have a strong direct impact on the operations of oil companies in the north, but the climate development in the North is likely to impact other political processes, public opinion and consumers. In turn they may affect the conditions for oil industry operations. 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 By the end of September 2007, 38 Russian and 15 Ukrainian JI projects had been submitted to the JISC for approval. As the countries are in competition for JI investors, and some of the JI project types available are similar due to the Soviet heritage, it is interesting to compare the two countries and offer some explanation of observed differences. Consequences for further market developments are also addressed. Flåm, Karoline Hægstad A Multi-level Analysis of the EU Linking Directive Process: The Controversial Connection between EU and Global Climate Policy FNI Report 8/2007. Lysaker, FNI, 2007, 78 p. > Download full-text version (PDF) Despite initial scepticism in the EU towards the Kyoto Protocol’s project mechanisms (the CDM and JI), the "Linking Directive" was adopted in October 2004, connecting the EU emissions trading scheme with the project mechanisms. Not only was the Linking Directive settled remarkably quickly, the decision-making process also left a more liberal text, with fewer restrictions on the use of the project mechanisms, as compared to the initial directive proposal. This report examines possible explanations to this puzzle, evaluating whether Member State preferences, EU institutions or external influence from the climate regime best can contribute to understanding the process. On the basis of the analysis of written sources stemming from the decision-making process, as well as seven in-depth interviews, the report finds that Member State preferences were the main driver in the Linking Directive process. This gives support to the intergovernmentalist mantra, that Member States are the main decision-makers in the EU. It also challenges much recent research claiming that EU policy-making is increasingly being taken out of the hands of the nation-state and into supranational actors such as the Commission and the European Parliament. Sæverud, Ingvild Andreassen 'Norway's Experience of Carbon Dioxide Storage: A Basis for Pursuing International Commitments?' Climate Policy, Vol 7, No 1, 2007, pp. 13-28. > Access full-text version here (subscribers only) Does the Norwegian political landscape indicate advocacy of binding international carbon storage commitments in the foreseeable future? Norway's unique geology has understandably prompted a particular interest in the subject. This article analyses the interests and relative influence of the key domestic actors (the oil industry, environmental organizations, political parties and government bureaucracy) who wield influence in policy-making processes concerning carbon dioxide storage. Despite the level of interest aroused by the issue in Norway, the evidence suggests that policy will not move in the direction of an international carbon storage agreement. This is mainly because Norwegian policy-making in the field is dominated by the Ministry of Petroleum and Energy, whose current interests do not seem compatible with such a position. The fact that carbon storage can be developed in accordance with Norway's interests as a petroleum producer may, however, be a decisive factor for the political parties, government bureaucracy and the oil industry in the future. Boasson, Elin Lerum and Jørgen Wettestad Standardized CSR and Climate Performance: Why is Shell Willing, but Hydro Reluctant? FNI Report 4/2007. Lysaker, FNI, 2007, 26 p. > Download full-text version (PDF) This report aims to contribute to the ongoing discussion concerning whether CSR merely serves to streamline company rhetoric or also has an influence on actual efforts. We discuss the tangible effects of CSR instruments on the climate-related rules and performances of the two different oil companies Hydro and Shell. First we 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. 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 The Prime Minister of Russia approved the long awaited procedures for Joint Implementation (JI) projects in Russia 28 May 2007. A pipeline of Russian projects has been building up and waiting for the Russian administration to be ready for their approval. Based on the regulations, the earliest possible start for JI project approval in Russia that can be foreseen is towards the end of the summer 2007. The paper outlines:  the Russian JI project cycle and the related project level timelines.  tasks left before the procedures will be implemented.  prospects for JI in Russia based on the newly established regulations. 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) Azerbaijan displays some of the features of the phenomenon known as the ‘resource curse’: high revenues from extractive industries coupled with high levels of corruption, a weak system of tax collection, lack of development of other sectors of the economy but oil, and increasing social inequality. As the leading foreign investor in Azerbaijan, the question is what BP does to address this situation. The article shows that Azerbaijan has taken a lead among ‘new’ petroleum states in promoting oil revenue transparency in recent years, not least as result of the prominent position of BP in the country, but that lack of transparency on the government’s spending of oil revenues remains a major barrier to reliable oversight. As for community investments and regional development, BP on behalf of its consortium partners operates programmes that could provide models for extractive industries around the world. The article argues that while BP has acted to establish collective goods in the CSR realm for all foreign oil companies, it risks having all corporate efforts to promote social and economic development undermined by the host government’s macro economic policies and lack of commitment to develop democratic and accountable political institutions. 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 Climate politics is still not a central issue in Russia. It is therefore not inconceivable that that the process of implementing Joint Implementation can be derailed or delayed because of other concerns and priorities in other policy areas. Should this happen the potential for JI in Russia in the first commitment period will soon be lost. But at the time of writing it seems like there might be light at the end of the tunnel of Russian JI, as the compliance system is almost ready and the JI procedures could be approved soon. Rottem, Svein Vigeland 'Forsvarets mål og strategi: Sikkerhet for hvem?' ('The Norwegian Defence's Objectives and Strategy: Security for Whom?') Internasjonal Politikk, Vol 65, No 1, 2007, pp. 39-61. In Norwegian. > Download full-text PDF version (provided by NUPI) After the Cold War, the concept of security has been heavily debated. Some maintain that Norwegian national defence capacity is secondary to international and partly idealistic tasks. In this article the ambition is to examine some of the challenges the “new” Norwegian Defence will meet when broadening its security agenda. Based on an analysis of official documents, the public debate and interviews with relevant actors in the Norwegian Defence and adjacent institutions, we find that state security is at the top of the agenda. It is essential to address how a proactive defence and a global responsibility are justified, and pose the question: for whom is security meant? In Norwegian public debate such questions are rarely addressed. In times of turbulence in respect to defence and security policy it is important to clarify, both analytically and politically, such questions. 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) As the EU expands to include the Central and East European (CEE) countries, its capacity to adopt and implement environmental policy will be negatively affected – this has been a widely held assumption. The CEE countries have been expected to be laggards, slowing down, weakening or even reversing progress in environmental policy-making. More than two years have now passed since the enlargement, and the new member-states have begun to make their mark on EU decision-making and implementation. This article confronts gloomy expectations with evidence in three issue-areas: Genetically modified organisms, air pollution and climate change. The main conclusions are, first, that there is no indication that enlargement will result in any breakdown of EU environmental policy. Second, the consequences vary across issue-areas. The new member-states have strengthened the group that favours strict regulation of genetically modified organisms, weakened the implementation of the EU emission trading directive and have affected EU air policy hardly at all. These results can give an indication of what is to come. On the other hand, only a short time has passed since enlargement, and the picture may change with regard to other issue-areas. Eikeland, Per Ove and Ingvild Andreassen Sæverud 'Market Diffusion of New Renewable Energy in Europe: Explaining Front-Runner and Laggard Positions' Energy & Environment, Vol 18, No 1, 2007, pp. 13-37. > Access full-text version here (subscribers only) This article surveys national variation among EU member states in the diffusion of renewable energy. After discussing what drives national policies, we conclude that policy ambitiousness reflects the degree to which salient national energy-related problems converge around renewable energy diffusion as a joint solution. Countries with ambitious renewable energy policies are found to have many unsolved national energy-related problems and an abundant primary renewable energy resource base that could be developed for solving these problems. Countries with less ambitious policies, on the other hand, have fewer salient national energy-related problems or a less abundant renewable energy resource base. Among energy-related problems, the lack of antional energy security in combination with policy ambitions to assist new industrial activities emerges as a particularly forceful policy driver. A side-effect of the convergence of many national problems around renewable energy diffusion as solution is that strong advocacy coalitions can more readily be forged to lobby for generous and stable governmental policies. Local-level factors, will, however, condition the effect of central government policies. 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) Access for independents to retail gas markets was a centrl concern in European policy reform efforts in the 1990s. Upstream oil and gas companies reacted with strategic intentions of forward integration. By late 2004, forward integration was still weak, however. An important explanation of the gap between announced strategic re-orientation and actual strategy implementation lies in the political failure of EU member states to dismantle market barriers to entry for independents. Variations between companies in downstream strategy implementation are explained by variations in business opportunities and internal company factors. Boasson, Elin Lerum, Jørgen Wettestad and Maria Bohn CSR in the European Oil Sector: A Mapping of Company Perceptions FNI Report 9/2006. Lysaker, FNI, 2006, 22 p. > Download full-text version (PDF) Does the increasing rhetorical attention to concepts such as ‘Corporate Social Responsibility’ (CSR) and related weight given to CSR instruments lead to corresponding changes in the behaviour of companies, within the policy fields of environmental protection, gender equality, and the countering of bribery? The EU-funded RARE (‘Rhetoric and Realities – Analysing Corporate Social Responsibility in Europe’) project has set out to explore this question in the three societal sectors of oil, fisheries and banking, relying on a combination of extensive surveys within the three sectors and a subsequent more limited number of in-depth case studies. This report sums up and discusses the main results of the oil sector 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. Karlseng, Therese Håkonsen Decreasing German Climate Ambitiousness: Simply Due to Economic Problems, or Do Politics Matter? FNI Report 8/2006. Lysaker, FNI, 2006, 82 p. > Download full-text version (PDF) Germany has been a leader among OECD countries in reducing greenhouse gas emissions 1990-2000. The 2000 national climate program was the first systematic expression of German climate policy after Kyoto and the EU burden-sharing arrangement, and was regarded as ambitious. However, when the 2005 climate program commenced the government was accused of a climate policy slow-down. Studies have shown that much of German emissions reductions were due to “wall fall profits”. Can changing economic conditions such as increasing abatement costs explain a potential slow-down? Or must political and institutional factors also be taken into account, such as the EU Emissions Trading Scheme, which was introduced in this period? This report seeks to measure and explain whether there has been a change in German climate policy strength (as a function of ambitiousness of climate targets and strength of policy instruments) during the period 2000-2005. It is found that while the climate targets have decreased, the policy instrument strength has increased due to the introduction of the EU emissions trading scheme. This report focuses particularly on the decrease in climate targets. It is found that the economic situation has played a role, as has EU policy developments. However, EU changes have mostly had unintended impacts due to vagueness’s in directives. This illustrates the EU's problem in a nut shell: Vagueness’s in directives enables them to be adopted and adopted quickly, but also gives room for interpretation and “gaming” within and between EU countries, and this reduces the climate ambitiousness. Moreover, grey societal pressure groups have gained strength and a slight preference change of German decision-makers has taken place in the period. Cockbain, Erik EU- og EØS-midler på miljøområdet i Sentral- og Øst-Europa. Er midlene komplementære og retter de seg mot de reelle miljøutfordringene? ('EU and EEA Funding for the Environment in Central and Eastern Europe. Are the Funding Schemes Complementary and do they Target the Real Environmental Challenges?') FNI Report 17/2006. Lysaker, FNI, 2006, 44 p. In Norwegian. > Download full-text version (PDF) The accession of ten new member states to the EU in 2004 expanded the European Economic Area (EEA) too. This prompted EEA’s EFTA members (Norway, Iceland and Liechtenstein) to establish the EEA Financial Mechanism and the Norwegian Financial Mechanism to support social and economic cohesion within the enlarged EEA. Poland, Hungary and The Czech Republic are the three largest beneficiary states and will receive two thirds of the 1.17 billion Euros that have been made available until 2009. Protection of the environment is one of the main priority sectors, and this report compares the "EEA-grants" to the EUs own environmental financing. This is done in order to discuss how the funding schemes differ in their approach to the environmental challenges in Central and Eastern Europe and to what extent they relate to each other. Boasson, Elin Lerum Assessing Domestic Adaptation to EU Policy: Detecting Mechanisms at Work FNI Report 16/2006. Lysaker, FNI, 2006, 19 p. > Download full-text version (PDF) Drawing on earlier works on Europeanisation, this report sketches a theoretical basis for assessing domestic adaptation to EU policy. It suggests that EU policy may target one or all of the four structures underpinning domestic organisational fields: regulative, normative, cognitive and material. Moreover, EU policy may spur effects at four levels: intra-organisational, inter-organisational, intra-field, and/or inter-field. These effects may be triggered directly by the EU targeting domestic organisational actors; they may be interpreted by national political executives prior to being introduced in the domestic setting; or these paths may be combined. On the basis of this rough framework, a fourfold typology of EU-induced effects is presented. This takes into account both the degree of institutionalisation in the domestic organisational field in question and the strength of EU policy. The assumption is that strong EU policy is more likely than weak policy to induce changes in a domestic organisational field. Moreover, a weakly institutionalised organisational field can be assumed to be far more open to EU policy than highly institutionalised fields. Both weak and strong EU policies may work as catalysts for change, but only strong policies are likely to cause change in their own right. Whether this framework provides fruitful insights must be tested through empirical applications. Skjærseth, Jon Birger and Jørgen Wettestad EU Enlargement and Environmental Policy: The Bright Side FNI Report 14/2006. Lysaker, FNI, 2006, 23 p. > Download full-text version (PDF) It is commonly expected that as the EU expands to include the Central- and East-European (CEE) countries, its capacity to adopt and implement environmental policy will be negatively affected. The traditional thinking is that the CEE countries will take on the role of laggards, thus slowing down or even reversing progress in environmental policymaking. This report questions the grounds for this reasoning and argues that a less pessimistic view emerges when the analysis considers the following: 1) that business and industry are likely to take a more proactive role; 2) that the CEE countries are unlikely to vote as a bloc on environmental issues because their interests and values vary, and 3) that the flexibility and capacity of EU institutions to adopt and implement environmental policy has increased. This positive picture is further enhanced if we shift the analytical focus from short-term decision making to long-term problem solving because the disadvantages of the anticipated slower decision-making may be outweighed by the positive environmental consequences of greater institutional effectiveness achieved by implementing the aquis in the new Member States. Wettestad, Jørgen Effectiveness of EU Auto-Oil: A Slippery Business? FNI Report 10/2006. Lysaker, FNI, 2006, 20 p. > Download full-text version (PDF) The Auto-Oil process is a central ingredient of the EU’s battle to control vehicle pollution. Previous research has focused on the policy-making phase, particularly the imbalanced stakeholder involvement. The time is therefore ripe to explore the impact of the Auto-Oil Directives on the industrial target groups, i.e. policy effectiveness. More behavioural change has taken place in the oil industry than in the car industry, and especially in the North. It is likely that EU’s institutional machinery and its various mechanisms did help bring about these behavioural changes, by bringing about the new knowledge that cleaner fuel was essential in order to attain the agreed goals between the EU and the car industry on reduced CO2 emissions. More importantly, the EU initiative to adopt a more stringent sulphur-in-fuels policy increased the pressure on the oil industry especially. But factors other than the EU’s institutional machinery need to be taken into account in order to explain the events of recent years. For instance, EU policy development and domestic initiatives in this field clearly affected each other. Hence, in order to clarify Auto-Oil effectiveness further, both vertical and horizontal interactions need to be better understood. Wettestad, Jørgen, 'The EU Air Quality Framework Directive: Shaped and Saved by Interaction?' In Oberthür, Sebastian and Thomas Gehring (eds), Institutional Interaction in Global Environmental Governance - Synergy and Conflict among International and EU Policies. Cambridge (MA), MIT Press, 2006, pp. 285-307. The 1996 Air Quality Framework Directive (FD) and the four subsequent daughter directives are important legal milestones in the EU’s fight against air pollution. A main thesis in this chapter is that in order to really understand both the shaping and future performance of the EU air quality directives it is absolutely crucial to understand the directives’ interaction with external institutions and other EU-internal policies. Hence, in terms of ‘vertical’ interaction with external institutions, the air quality guidelines produced by the World Health Organisation (WHO) seem to have been the most important scientific reference point in EU policy-making on air quality. A central factor explaining this is the use of the clearly more ambitious WHO standards as a benchmark and something to strive for by actors within the EU seeking a strengthening of EU policy. In terms of ’horizontal’ interaction within the EU itself, the direct policy coordination with the Auto-Oil I Programme and Directives targeting vehicle pollution is perhaps less strong than could be expected. But this may have something to do with the simple fact that the reduction of vehicle pollution is a necessary prerequisite for improving air quality and hence synergistic interaction will take place in the implementation processes anyway. 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) A striking convergence has taken place in the design of the Norwegian and EU greenhouse gas emissions trading systems from 1998 to 2004. This article argues that the Norwegian adaptation to the EU did not take place as a consequence of perceived legal obligations under the European Economic Area agreement. Nor did it take place due to Norwegian actors being persuaded about the merits of the EU design. The main explanation has to do with interests. The EU market and politics are of course generally very important for Norway. However, before the US pulled out of the Kyoto Protocol in 2001, the Norwegian outlook in climate politics was global. The US pull-out accelerated the development and hence the attractiveness of the EU trading system and resulted in EU emissions trading as the most probable and possibly only international market for Norway to link up to. Hence, this analysis provides further support to the importance of being sensitive to the global context and institutional interaction when analysing the relationship between the EU and its neighbouring countries. Skjærseth, Jon Birger and Atle Christer Christiansen 'Environmental Policy Instruments and Technological Change in the Energy Sector: Findings from Comparative Empirical Research' Energy & Environment, Vol 17 No 2, 2006, pp. 223-241. This article explores the extent to which and in what ways environmental policy instruments may affect patterns of environmental friendly technological change in the energy sector. Our argument is based on the assumption, however, that technological change is also affected by the political context in which the instruments are applied and by the nature of the problem itself. Comparative empirical research involving different European countries, sectors and policy fields were examined, including climate change, air pollution and wind power. The relationship between environmental policy instruments and technological change is extremely complex, not least due to the impact of other factors that may be more decisive than environmental ones. Against this backdrop, it was concluded that: 1) a portfolio of policy instruments works to the extent that different types of policy instruments affect the different drivers and stages behind technological change needed to solve specific problems. The need for a portfolio of policy instruments depends on the technological challenge being faced; 2) voluntary approaches facilitated constructive corporate strategies, but mandatory approaches tended to be more effective in stimulating short term major technological change; 3) voluntary approaches work well in the short term when the problem to be solved is characterized by lack of information and coordination. Eikeland, Per Ove, Biofuels - The New Oil for the Petroleum Industry? FNI Report 15/2005. Lysaker, FNI, 2005, 39 p. > Download full-text version (PDF) We conclude that there exist strong general driving forces for diffusion of biofuels at the EU level, in the form of various problems, directives and other policies converging towards diffusion of biofuels as a joint solution. At the EU member-state level, however, the driving forces have been less clear, due to large asymetries in the national policies established for implementing EU policies. Nevertheless, by late 2005, most key member states appear to have adopted policies that will clear the way for growth in biofuel diffusion. We have noted more specific driving forces and obstacles for involvement by major oil companies in biofuel activities. Inter-company variation in biofuel investments may be explained by variation in business focus (upstream vs. downstream focus), by attitudes towards diversification in general, by response strategies to the climate-change issue, as well as by variation in political and business pressure caused by geographical differences in the companies’ core downstream business spheres. As political pressures grew more similar across the EU member countries in the course of 2005, variation in pressure on the companies tended to be weaker. Hence, as of early 2006, the driving forces working for greater involvement in biofuel diffusion appear stronger than those working against such involvement by the European upstream oil industry. Thus, we must conclude that recent political changes at the EU and member-country levels have removed major obstacles to the diffusion of biofuels in Europe. This should increase the future prospects for bio-energy in Europe and the pressure on oil companies to choose biofuels as ‘the new oil’ to lubricate the diversification strategy for the renewable energy products so highly profiled in the past decade. It remains to be seen, however, whether the companies have the will and ability to balance their upstream oil and gas focus with greater attention to developing activities further down the energy supply chain. Boasson, Elin Lerum Klimaskapte beslutningsendringer? En analyse av klimahensyn i petroleumspolitiske beslutningsprosesser ('A New Climate for Decision-making? An Assessment of Climate Concerns in Decision Processes Concerning Petroleum Policy') FNI Report 13/2005. Lysaker, FNI, 2005, 93 p. In Norwegian. > Download fulltext version (PDF) The petroleum sector is the largest industry in Norway. The main reason why Norway is out of line for reaching it’s commitment to the Kyoto protocol is the fast growing emissions of greenhouse gases from this sector. This report gives an assessment of how climate concerns are treated in the development of Norwegian petroleum policy. It aims is to answer the following questions 1) How and to what degree were climate concerns organised into the decision processes concerning petroleum policy in the period 1997 to 2004? and 2) Why were climate concerns organised into the decision processes in such a way? The focus is on the role of the Norwegian Ministry of Oil and Energy, the Norwegian Petroleum Directorate, the Norwegian Ministry of Environment and the Norwegian Pollution Control Authority. The licensing rounds through which permission for exploration on the Norwegian Continental Shelf are given and the plans for development of oil and gas fields from the period 1997 to 2994 are examined thoroughly. The report concludes that climate concern is ignored when the production licenses are announced, that it is potentially present when the production licenses are awarded and that it is organised into the processes to a minor degree when the plans for development of oil and gas fields are handled. Skjærseth, Jon Birger 'Governing Technological Change by Voluntary Agreements: Climate Policy and Dutch Petroleum Production' Climate Policy, Vol 5, No 4, 2005, pp. 419-432. > Access full-text version here (subscribers only) This paper explores the relationship between voluntary agreements in climate policy and technological change in the Dutch petroleum sector. Empirical evidence suggests first that improvements in climate-friendly technology have been partly caused by ‘soft’ pressure, diffusion of knowledge and new opportunities. Secondly, improvements have been marked significantly more by incremental diffusion of available technology than invention of new and radical solutions with significant consequences for CO2 emissions. That said, the voluntary agreements also have a potential for facilitating long term radical innovation due to their cooperative nature and capacity for collective learning. 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 The possibility of extracting and storing CO2 in a safe place to avoid emissions has for many years been considered a future remedy to the climate problem. The attractiveness of CO2 storage, and also its weakness in the eyes of its opponents, is that it offers a method to reduce emissions that does not require major changes in the energy supply system, at least for some time. Storage of CO2 in structures under the ocean floor is one promising option. Norway has taken a particular interest in this theme, due to its position as a CO2 emitter connected to offshore oil and gas production, as well as to the existence of geological formations suitable for storage. The purpose of this paper is to give an overview of the challenges related to carbon storage as a climate policy measure, exemplified by the case of Norway. Based on the experience of Norway, the paper winds up by discussing implications for the climate regime of bringing the issue into the formal channels of the UNFCCC and the Kyoto Protocol. Wettestad, Jørgen and Ingvild Andreassen Sæverud Implementing EU Emissions Trading: Institutional Misfit? FNI Report 10/2005. Lysaker, FNI, 2005, 24 p. > Download full-text version (PDF) This article discusses the first round of implementation of the EU emissions trading scheme (ETS) in the form of the drawing up of National Allocation Plans (NAPs). Three key EU greenhouse gas emitters are focused upon: Germany, Spain and the UK. As these countries have a varying pre-existing climate policy mix and hence a seemingly varying institutional fit with the instrument of emissions trading, can such differences shed light upon differing NAP implementation and performance among these three countries? To some extent, but a main finding is that the real issue is much more one of ‘varying degrees of misfit’ than one of fit versus misfit. For instance, German industry’s favouring of voluntary agreements, the UK’s differently designed domestic ETS, and the lack of pre-existing Spanish climate policy undoubtedly complicated the processes in these countries and reduced the time and ability to consult with other Member States. This may indicate the need for a slowdown of the tempo in EU ETS policy-making in order to improve institutional fit and transnational communication and learning. Wettestad, Jørgen 'The Making of the 2003 EU Emissions Trading Directive: An Ultra-Quick Process Due to Entrepreneurial Proficiency?' Global Environmental Politics, Vol 5, No 1, 2005, pp. 1-24. > Download full-text version (PDF) The EU emissions trading scheme has been characterized as one of the most far-reaching and radical environmental policies for many years, and 'the new grand policy experiment'. Given the EU's earlier resistance to this market-based and US-flavored instrument with no international track record, the less than two years EU decision-making process can be characterized as a puzzlingly ultra-quick political 'pregnancy'. In order to understand this, it is necessary to take three explanatory perspectives, and the interaction between them, into account. First, the emissions trading issue was more mature within the EU system than immediately apparent, with worrying emission projections and no effective common climate policies adopted. Second, the Commission acted as a strong and clever policy entrepreneur, dealing with other basically positive EU bodies. Third, when the US pulled out of the Kyoto process in March 2001, it provided a window of opportunity for the EU to take the reins in global policy leadership. Rosendal, G. Kristin 'Governing GMOs in the EU: A Deviant Case of Environmental Policy-making?' Global Environmental Politics, Vol 5, No 1, 2005, pp. 82-104. > Download full-text version (PDF) The central question addressed in this study is how one of the world's strongest and fastest growing sectors - the biotech industry - has seemingly been without influence in the EU's efforts to regulate genetically modified organisms. First, agri-biotech industry's positions are compared to the policy outputs. This is followed by a discussion about precaution and protectionism. The paper goes on to analyze the role of industry in light of three hypothesized explanations: internal unity; access to decision-making; and strength of counterbalancing forces. It concludes that counterbalancing forces, particularly in combination with developments in the EU decision-making procedures, provide the greatest explanatory power. Moreover, the strength of the counterbalancing forces in this particular environmental issue area is boosted by the links between health and environment concerns in public opinion. Skjærseth, Jon Birger and Atle Christer Christiansen 'Climate Change Policies in Norway and the Netherlands: Different Instruments, Similar Outcome' Energy & Environment, Vol 16, No 1, 2005, pp. 1-25. This article examines the extent to which climate change policies and instruments in Norway and the Netherlands have provided continuous incentives for the development, adoption and diffusion of new abatement technologies. More specifically, the paper examines whether differences between the types of instruments adopted (Dutch voluntary agreements and the Norwegian CO2 tax), problem type and domestic political context have affected technological change in the two countries' petroleum sectors. In brief, empirical evidence suggests that the two cases display quite similar outcomes in terms of technological change. That said, there are also important differences, pertaining most notably to the development and adoption of radical innovations in the Norwegian petroleum sector. The differences are in turn attributed to the interplay between the respective policy instruments adopted and the political contexts in which they are applied. These findings are important not only for policymakers involved in the selection of effective instruments in climate change policy, but also for the development of theories and analytical frameworks to examine and assess dynamic efficiency. Wettestad, Jørgen 'Enhancing Climate Compliance - What are the Lessons to Learn from Environmental Regimes and the EU?' In Stokke, Hovi and Ulfstein (eds), Implementing the Climate Regime: International Compliance. London, Earthscan, 2005, pp. 209-233. The chapter reviews compliance measures used in other international environmental regimes to see if there are any lessons that might be applied to the context of compliance with the Kyoto Protocol. Focused institutions in this context are the ozone-layer regime, the regime based on the Convention on Long-Range Transboundary Air Pollution, CLRTAP), and the internal climate policy of the European Union. There are clearly functional similarities and tangents between the three institutions and the climate change regime which form a basis for drawing interesting lessons. All the institutions deal with 'atmospheric' problems (the EU even deals specifically with climate change). Hence, there should be some common ground in terms of challenges related to the measuring and reporting of emissions. Moreover, with regard to the various North-South compliance challenges represented by a global policy context, the ozone regime has a valuable and decade-long experience in handling reporting deficiencies and non-compliance within a global environmental policy context. Finally, in terms of response and enforcement, especially the EU should in principle hold interesting lessons as a supra-national 'enforcement' institution, one which is also starting to address the specific problem of climate change. Eight more specific lessons are then formulated. First, an institutional warm-up period is inevitable. Second, wise institutional engineering can speed up improvements. Third, independent inputs should be encouraged, but verification expectations should be kept moderate. Fourth, there is a trend towards greater transparency: climate crooks will be identified! Fifth, maintain a close connection between the facilitative and enforcements branch of the Compliance Committee. Sixth, ways to engage the civil society should be explored. Seventh, 'facilitating' compliance will be the central response challenge. Eight, the possibility of enforcement will still be important as a 'hidden stick'. Wettestad, Jørgen 'Offshore Air Pollution and Technological Fixes: A Norway-UK Comparison' Energy and Environment, Vol 15, No 5, 2004, pp. 779-805. This report discusses whether and how policy instruments have provided incentives for the develop-ment, adoption and diffusion of environmentally benign technologies and hence reduction of emissions of NOx and VOCs in the two important petroleum countries Norway and the UK. The conclusion is that Norway seems somewhat more ‘advanced’ than the UK in terms of technological change in this issue area. Norway has installed more low-NOx burners and, in the recent years, many more VOC recovery systems than the UK. In order to understand this difference, it is important to keep in mind that fundamental problem characteristics differ considerably between the two. In Norway, offshore emissions play an important role in the total emission picture, particularly for VOCs, where offshore emissions account for 60% of the total emissions. This is very different in the UK, where offshore NOx and VOC emissions only account for around 4-5%, reducing the governmental need to develop and apply effective technology in order to attain domestic and international emissions reduction goals. Hence, although there was policy inaction for a long time in both countries, the effort to develop effective policies has been much greater in Norway, and technological change particularly in the form of low-NOx burner installation has taken place due to an anticipation within the oil industry of stricter policy to come. Wettestad, Jørgen 'Air Pollution: International Success, Domestic Problems' In Skjærseth, Jon Birger (ed), International Regimes and Norway`s Environmental Policy: Crossfire and Coherence. Aldershot, Ashgate, 2004, pp. 85-111. Its position as a major net-importer of transboundary air pollution with vulnerable soil characteristics has spurred Norway to seek strong international commitments. This effort has over time been successful. However, international success has not been matched by equally successful domestic policies. True, the domestic reduction of sulphur dioxide (SO2) emissions is a shining success story. But Norway's performance with regard to reducing emissions of nitrogen oxides (NOx) and volatile organic compounds (VOC) is much less impressive. In fact, the VOC performance is simply a fiasco. The same holds true for air quality in general, with the exception of the reduction in SO2. In order to account for Norway's varying and partly embarrassing goal attainment, this chapter emphasises a combination of domestic institutions and policies and fundamental problem characteristics. One common factor in particular that has complicated the development of effective NOx and VOC policies is clearly the growth of Norway as an oil and gas producer and exporter in the 1990s. However, the increasing linkages and complementarity between policies adopted within the Convention on Long-Range Transboundary Air Pollution (CLRTAP) and the EU may provide the environmental authorities with the necessary clout to get adequate policy packages adopted and implemented in the years ahead. Christiansen, Atle C. and Jørgen Wettestad 'The EU as a Frontrunner on Greenhouse Gas Emissions Trading: How Did It Happen and Will the EU Succeed?' Climate Policy, Vol 3, No 1, 2003, pp. 3-18. > Access full-text version here (subscribers only) The objective of this paper is first to provide empirical evidence of what can be seen as a rather remarkable change in EU's position on the use of greenhouse gas (GHG) emissions trading (ET) in climate policy, from the role of a sceptic in the run-up to Kyoto towards more of a frontrunner. The paper argues that there is a synergistic and multilevel mix of explanatory factors for this 'U-turn', including developments at the international, EU, Member State, sub-national, and even down to the personal level. Second, the paper explores and discusses the philosophy behind the Commission's proposal for a directive on GHG ET. Third, the paper examines the prospects for 'success' of a scheme for EU-wide ET using a multifaceted a set of metrics. In brief, we argue that output success - the chances for having a directive adopted - hinges on the resolution of two key issues. First, whether the preliminary phase is to be mandatory or voluntary, and second, incompatibilities with domestic ET schemes. Outcome success - steering and cost-effectiveness - will in turn depend on factors like the coverage of the scheme and inclusion of project-based credits, while more long-term political implications hinges on the successful adoption and operation of the scheme. Skjærseth, Jon Birger and Jørgen Wettestad 'Understanding the Effectiveness of EU Environmental Policy: How Can Regime Analysis Contribute?' Environmental Politics, Vol 11, No 3, 2002, pp. 99-121. The study of EU environmental policy consequences tends to focus on how EU legislation output is formally implemented in the Member States and its impact in terms of the state of the European environment. The crucial outcome dimension linking output to impact has, however, received scant attention. Outcome points to changes in the behaviour of relevant target groups causing the problems in the first place. Accordingly, we know little about the causal relationships between EU environmental policy and the state of the European environment. This article examines whether the study of regime-effectiveness has something to contribute in order to bridge this gap. Since EU legislation comes close to the notion of international regimes in the implementation phase, this article argues that analysis and analyses of regime effectiveness can contribute important insights on how to evaluate and explain the effectiveness of EU environmental policy. In particular, the regime analysis perspective is important for understanding how interaction between EU directives and international environmental regimes affect the performance of EU environmental policy and vice versa. However, the study of regime effectiveness has clear limitations in the domestic context. Moreover, regime analysis has much to learn from EU studies particularly related to environmental policy integration. Wettestad, Jørgen Clearing the Air - European Advances in Tackling Acid Rain and Atmospheric Pollution Aldershot, Ashgate, 2002, 189 p. Through recent policy advances within the European Union (EU) and the Convention on Long-Range Transboundary Air Pollution (CLRTAP), Europe has taken a significant step toward solving the problems associated with air pollution. This book assesses progress made within the EU and CLRTAP contexts; discusses central causes of this progress; and sketches prospects ahead for implementation, EU policymaking abilities, and the division of labor between the EU and CLRTAP. In the case of the EU, four central causes for the progress made are pinpointed: the 1995 'green enlargement' of the EU (with the accession of Austria, Finland and, especially important in this context, Sweden); the linkages made with related EU policies, resulting in integrative package deals; a more constructive role of the earlier central air laggard the UK; and helpful interplay with CLRTAP. Implementation prospects ahead look quite positive. For instance, estimated benefits of the cuts in emissions are far higher than costs. The significance in these matters of an expanding EU is likely to increase, but there is widespread support for upholding the all-European and trans-Atlantic CLRTAP forum. Wettestad, Jørgen 'The Ambiguous Prospects For EU Climate Policy - A Summary of Options' Energy and Environment, Vol 12, No 2&3, 2001, pp. 139-165. The European Union is a key actor in international efforts to build an effective response to the challenge of global climate change. After the US, it is the second biggest emitter of greenhouse gases. In the 1997 Kyoto Protocol, the EU committed itself to a 8% reduction of a basket of greenhouse gases. However, EU climate policy so far must be characterised as more of a failure than a success. Not least worrisome, EU officials have recently projected that EU greenhouse gas emissions will increase 6-8% by the end of this decade. In light of the Kyoto commitments and EU climate policy ambitions, what is most probable - comforting emission cuts or embarassing increases? What are the main determining factors? On the basis of a summary and review of important developments and achievements in EU climate policy, including the more recent, post-Kyoto developments, the central discussion of key future perspectives are carried out; distinguishing between national, EU-level and global "lenses". Worrisome domestic progress so far makes it tempting to adopt a pessimistic position. But complexity is very high and simple and sweeping assessments and answers should be treated with every bit of caution and suspicion. Eikeland, Per Ove Rettslige rammebetingelser i Norge, Sverige og Finland og deres innvirkning på strukturutviklingen i elindustrien ('The Legal Framework in Norway, Sweden and Finland: Implications for Electricity Industry Structural Development.) FNI Report 21/1998. Lysaker, FNI, 1998, 116 p. In Norwegian. This study – conducted by the FNI in cooperation with the law firm Thommessen, Krefting, Greve, Lund Ltd. – shows how the legal framework in Norway,Sweden and Finland has influenced the pace and direction in the structural development of the countries' electricity supply industries. The report concludes that despite of greater freedom in the electricity trade, triggered by market deregulation in all the three countries, the industry still faces different regulatory frameworks when it comes to structural development, i.e. freedom to engage in mergers and acquisitions. Norwegian companies face more stringent regulation in company asset and share markets than do Finnish and Swedish companies. This has caused more rapid and far-reaching changes in the electricity supply industry structure in Finland and Sweden than in Norway. The most important barrier to structural development in Norway has been the licensing law, first established in 1917. Differences in competition laws, tax laws and tariff regulations account for other differences found in structural development. 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