Norway’s stated objective is to become carbon neutral by the year 2050. This will prove extremely challenging, particularly as fossil fuels continue to dominate the Norwegian economy. This chapter explores how, why and to what extent Norway has embarked on the transformation towards a low carbon economy, as a response to the global challenge of climate change. 

Norway’s low carbon strategy and the prospects for change are analysed from two perspectives with different relevance for varieties of capitalism (VoC) theory. The first, a domestic politics perspective, indicates that the key drivers of change in the face of an international challenge can be found at the domestic level, rather than emanating from abroad. The second perspective takes us from domestic politics to the external context, particularly the European Union (EU).