New Renewable Energy Innovation Partnerships: Elements of a Constructive Carbon Strategy for Norway’s Industry and Government

Norway has two major problems. First, an enormous budget surplus, resulting from petroleum exports, which economists say could overheat the Norwegian economy if it were to be reinvested on the Norwegian mainland. Second, the dependence on the petroleum sector for continued economic growth. There is consensus that new industry needs to be developed in order to maintain Norwegians’ standard of living when the petroleum revenues start dwindling. This paper argues that these problems might be ameliorated through solving a third problem, namely Norwegian industry’s need to meet its obligations under the Kyoto Protocol. This, it argues, could be done in a manner that would stimulate creativity and new strategies among both greenhouse gas (GHG) emitters; the financial community; and new renewable energy (NRE) companies in Norway and key non-Annex 1 countries alike.