Norway to Double Carbon Tax on Oil to Fund Climate Initiatives in Developing World
This week, Norway announced plans to double a carbon tax on its North Sea oil industry and set up a £1 billion fund to aid the developing world in mitigating the impacts of climate change. In addition, monies fund renewable energy, food security, and the conversion to low carbon sources of energy. The fund includes pledges of about £44 million to preserve tropical forests that are crucial in storing carbon.
Norway previously financed forestry initiatives in Brazil, Ethiopia, and Indonesia.
According to the Guardian, the Oslo Government will further spend £69m on carbon credits to offset its emissions, create building regulations to make new homes carbon-neutral by 2015, and increase efforts to cut automobile emissions by switching to electric vehicles.
These initiatives throw down a political challenge to other oil producing countries. “Norway is showing how you can use oil income to fund the transition out of oil, we should be doing the same with UK oil revenues. The Scottish National Party have always been keen on the Norwegian oil fund, and now it is setting an example really worth following,” said WWF Scotland director, Richard Dixon.