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• 2.6 Measures in the 2022–2025 Climate Budget

2.6 Measures in the 2022–2025 Climate Budget

The Norwegian Climate Agency has sought to determine the magnitude of emission reductions which could result from the measures in the Climate Budget. The method and assumptions used to calculate the impact of the measures is described in more detail in the Appendix to the Climate Budget Proposition 1/2021. All measures and activities have been placed in Table 2.2a, 2.2b or 2.3. Brief descriptions of the measures are provided under Tables 2.2a and 2.2b.

2.6.1   Measures with quantified emission reductions

Table 2.2a shows the measures for which it has been possible to estimate quantified emission reductions in 2022 and 2025 (the economic plan period). The GHG reduction stated for the measures is measured against a projection (a baseline trajectory) of emissions, which shows what the development in emissions would have been without the measures in the Climate Budget. As Table 2.2a shows, there are a number of important measures in the Climate Budget for which the impact is already included in the projection. For more information on the projection, see Chapter 2 of the Appendix to the 2022 Climate Budget.

Table 2.2a: Measures in the Climate Budget with quantified emission reductions

* indicates reporting responsibility.
1) The impact of the projection is assessed in relation to the 2009 emissions level. The impacts of the measures are calculated using the projection in the same year. This means that the overall impact of the measures cannot be aggregated between columns 2022 and 2025, as they indicate the impact in the year in question compared with 2009. The impacts are calculated based on assumptions concerning the timing of implementation of the measures. The impact per measure is rounded to the nearest 100 tonnes CO2e, and the sum in the table above is therefore 389,700, rather than 389,800.

2.6.2   Description of measures in Table 2.2a:

Measure 1. Phasing out of oil-fired heating of buildings

The use of heating oil and kerosene for the heating of buildings was prohibited on 1 January 2020. The Agency for Urban Environment follows up the ban as regards private buildings and commercial buildings, and has authority to grant dispensations from the ban. The Agency for Urban Environment is monitoring the intentions behind the regulations and associated guide, and has adopted a restrictive approach to the granting of dispensations from the ban.

Measure 2. Phasing out of fossil oil and gas in district heating (peak load)

Fortum Oslo Varme AS aims to phase out the remaining use of fossil heating oil and LNG as a peak load in the production of district heating under normal operating conditions. The company is actively working to identify suitable alternatives, such as electricity, bio-oils, pellets and liquid biogas. The average proportion of LNG over the past three years has been 1.5 %.

Measure 3. Extraction of landfill gas

The aim of this measure is to increase extraction of landfill gas (methane) from the landfill sites at Grønmo and Rommen. In 2022, various operational measures are planned to ensure efficient collection of landfill gas.

Measure 4. National requirement for sale of 24.5 % biofuel

The Product Regulations set out requirements regarding the blending of biofuels in petrol and diesel sold for road transport purposes in Norway (the sales requirement).  As of 1 January 2021, the national sales requirement for biofuels is 24.5 %, with a secondary requirement for 9 % advanced biofuel[1] (including double-counting of advanced biofuel). The Norwegian government has announced that there will be a further increase in the sales requirement in the coming years.

Measure 5. Road toll payment system

The road toll payment system helps to reduce road transport, promote more climate- and environmentally friendly transport and contribute to the funding of infrastructure, especially for public transport and cycling. Changes in the road toll ring that could give rise to reductions in GHG emissions from 2022 include a reduction in the price charged for electric cars in 2021. Biogas vehicles will be exempt provided that the Norwegian Public Roads Administration has established the necessary practical arrangements. The road toll payment system will be renegotiated during 2022.

Measure 6. Zero emissions/sustainable biofuels in the municipality’s vehicle fleet 

The plan was for all vehicles in the City of Oslo’s vehicle fleet (cars, vans and heavy vehicles) to be either zero-emission or powered by sustainable biofuel (ideally biogas, but biodiesel is also permissible) during 2020. As of the first quarter of 2021, the total renewable proportion within the light and heavy vehicle fleet was estimated to be 87 %. The transition away from fossil to zero-emission and biogas-powered municipal vehicles will continue in 2022. Biodiesel will gradually be phased out where suitable, competitive alternatives are available. There is a proposal to set aside NOK 124 million, in addition to the NOK 50 million that was previously allocated during the term of the economic plan, to replace and acquire more refuse collection vehicles to ensure the efficient stable collection of waste. The refuse collection vehicles that are acquired will be powered by biogas, which entails an additional cost. It is proposed that NOK 50 million be set aside in 2022 for further replacements of municipal heavy vehicles and machinery.  It is also proposed that the loan scheme for the districts be continued in an annual amount of NOK 20 million in 2024 and 2025 for the ongoing replacement of the vehicle fleet in the districts.

Measure 7. Better cycling facilities

Amongst the most important instruments for making Oslo a cycling city for all is an interlinked cycle path network. In addition to the new-build and upgrading of cycling infrastructure, the municipality will prioritise operation and maintenance, research and development, along with communication and campaigns. The City Government will set aside NOK 13 million in 2022 and NOK 16 million annually for the remainder of the economic plan period to boost capacity in the work on new and upgraded cycling infrastructure.

Measure 8. Zero-emission taxis by 2025

The measure is based on regulations concerning environmental requirements for taxis in Oslo, which require the taxi industry to use zero-emission vehicles (City Council Proposition 255/20). The municipality is facilitating the transition by establishing ordinary charging infrastructure, various pilot schemes for fast charging, facilitating priority for zero-emission vehicles at taxi stands, dedicated charging infrastructure for zero-emission taxis at stands, and subsidies through the Climate and Energy Fund for home charging for taxi drivers. The City Government is proposing the allocation of NOK 5 million for the establishment of six new charging points for electric taxis in 2022.

Measure 9. Zero-emission goods and service transport vehicles

This measure aims to reduce emissions from vans in Oslo by accelerating the transition to electric vans. The reduction in emissions shown in Table 2.2a concerns impacts over and above what is already included in the projection. This is a package of measures which comprises a range of instruments. At the end of March 2021, electric vans accounted for just under 8 % of the total number of vans registered in Oslo. The City of Oslo is working to reserve business parking spaces within Ring 1 for electric vans. In 2022, an additional 25 business parking spaces will be reserved for electric goods and service transport vehicles. A total of 109 out of 123 business parking spaces within Ring 1 will then be reserved for zero-emission goods and service vehicles. Two zones have been established with loading and unloading stations reserved for zero-emission goods transport, which will be evaluated during 2021. Based on the evaluation, an escalation plan will be drawn up for the re-prioritisation of loading and unloading areas within Ring 1. In 2022, 14 charging points for goods and service transport will be established; see more about appropriations for charging in the introduction.

All entities are responsible for applying the City of Oslo’s standard climate and environmental requirements in the procurement of transport or construction. This will help to accelerate the transition to electric vans. The municipality has two subsidy schemes for charging electric vans through the Climate and Energy Fund, charging infrastructure for businesses and fast chargers for electric vans respectively. Electric vans can also be parked free of charge in resident parking areas. The municipality is working to communicate the benefits of electric vans and other subsidy schemes. Through the Zero Emissions Fund, Enova has established a subsidy scheme for purchases of electric vans and associated normal charging.

Measure 10. Zero-emission buses in public transport

The City Government failed to achieve its target for fossil-free public transport in 2020, largely as a result of the uncertainty created by the government over whether biodiesel over and above the sales requirement would have a climate effect. Ruter is aiming for zero-emission public transport by the end of 2028. As regards Oslo, Ruter is proposing virtually zero-emission operation at the start of new bus contracts, so that all city buses in Oslo are electric by the end of 2023. As Oslo Metro trains and trams are already electric, the replacement of buses will be key to the measure’s effectiveness.

Measure 11. Zero emissions/sustainable biofuel in the transport of bulk materials and waste from construction sites

Since 2020, the City of Oslo has required the fossil-free transport of bulk materials to and from construction sites in its own projects. In addition, there are rewards for using electricity, hydrogen and biogas, as well as minimising the distances travelled. All relevant agencies stipulate requirements in new contracts where applicable. The municipality is also working to reduce the quantities of bulk materials that are transported around Oslo. This is partly being achieved by:

Raising awareness amongst the City of Oslo’s buyers of bulk transport services concerning how bulk materials can be reused and exploring new solutions and/or logistics through a municipal working group and Pådriv in Hovinbyen:

• In all new planning matters where it is relevant, the Agency for Planning and Building Services asks proposers to present an account of issues relating to the handling of bulk materials
• Breaking down barriers in regulations and acquiring land for local bulk material handling through planning processes
• Exploring the scope to ensure that land is set aside for bulk material handling

Measure 12. Pilot city for zero-emission heavy vehicles

The measure “Pilot city for zero-emissions heavy transport” aims to reduce emissions from trucks in Oslo by accelerating the transition from diesel to electricity, hydrogen or biogas. This is a package of measures which comprises a range of instruments. From 2021, a subsidy scheme for charging infrastructure for electric trucks will be established under the Climate and Energy Fund, as a supplement to Enova’s support schemes. The City of Oslo is working to ensure predictability and appropriate framework conditions for the transport industry inside the road toll ring. The joint imposition of requirements will help to ensure that all vehicles used to deliver goods or services to the City of Oslo will use climate-friendly fuel technologies. The City of Oslo will pursue a dialogue with the business community regarding the imposition of environmental requirements for transport in procurements through the Næring for klima (Business for climate) network.

Furthermore, the municipality will establish charging infrastructure for heavy vehicles; see the introduction for more information on grants for charging infrastructure. The City of Oslo will also facilitate energy stations that offer charging and refuelling with renewable fuels, such as biogas, hydrogen and fast charging. It will also continue the measure to exclusively reserve loading and unloading areas for zero-emission goods vehicles. During 2022, energy stations will be established at Ryen and Kjelsrud, which will supply biogas and hydrogen respectively. In addition, both stations will offer fast charging. In 2021 and 2022, the City of Oslo will conduct an information campaign in cooperation with Viken County Council aimed at heavy transport operators, with a particular focus on small businesses. The Agency for Real Estate and Urban Renewal is currently tasked with acquiring land for climate infrastructure, such as energy stations, bulk material management and freight consolidation centres. The Port of Oslo is planning to install fast charging infrastructure for heavy vehicles at Grønlia in 2021/2022.

Measure 13. Zero emissions/sustainable biofuel in municipal machinery 

All the City of Oslo’s own construction machinery will switch to fossil-free fuel and eventually zero-emission solutions. In the revised budget for 2021, NOK 50 million has been allocated to accelerate this transition. The City Government is proposing that the provision be continued in 2022 and is setting aside NOK 50 million. In addition, NOK 8 million will be allocated annually from 2022 to 2024, along with NOK 6.8 million in 2025 for the replacement of the machinery and vehicle fleet of the Agency for Cemeteries and Burials.

Measure 14. Zero-emission public transport – ferries

Ruter’s electrification of ferry traffic began in 2019 with the Oslo-Nesodden route, and the Nesodden ferries have been electrically operated since April 2020. The existing island ferries will be replaced by new electric ferries in the winter of 2021/2022.

Measure 15. Establishment of shore power

Shore power facilities provide an opportunity to supply the power required by ships when docked using zero-emission solutions rather than fossil diesel. All international ferries serving Oslo have used shore power since the first quarter of 2020. The establishment of shore power for cement ships docked at the northern Sjursøy pier has entered the final phase and is scheduled to become operational during autumn 2021.  The Port of Oslo has applied to Enova for investment support for shore power for container ships in Sydhavna port.

2.6.3   Unquantified measures expected to provide emission reductions

Table 2.2b shows measures that are considered to have an emission-reducing effect, but where the level of uncertainty is considered to be too great to quantify the impact and place the measure in Table 2.2a. This could for example be due to uncertainty in the scope of the measure and the timing of the expected impact.

Even though the emission reductions resulting from the measures have not been quantified, this does not mean that the measures will necessarily have less impact on GHG emissions in Oslo than the quantified measures. For example, requirements regarding zero emissions/sustainable biofuels in machinery used in construction projects will have a major impact, but the underlying data used in the impact calculation must be developed further before the impact can be included in Table 2.2a.

[1] Biofuels which are primarily produced from waste and residues, defined in the list in Appendix V of the Product Regulations

Table 2.2b: Unquantified measures expected to result in emission reductions
in 2022 and 2025

* Asterisk indicates reporting responsibility

2.6.4   Description of measures in Table 2.2b

Measure 16. Increased materials recycling and reduced quantity of plastic waste for incineration

The aim of this measure is to reduce GHG emissions through the increased material recycling of plastic waste from Oslo’s households. The goal is for the Agency for Real Estate and Urban Renewal (EBY) to increase the degree of sorting of plastic from 2,453 tonnes in 2020 to 2,900 tonnes in 2022. To achieve the sorting target in 2022, EBY will both continue and strengthen its communication work. In 2025, 50 % of the plastic in household waste will be separated through sorting (if the Norwegian Environment Agency’s proposed regulations, which are currently out for consultation, are introduced). In 2020, the sorting rate was 30 %. Going forward, the municipality must identify long-term measures to increase the sorting of plastic.

Measure 17. Increased investment in public transport

Public transport services have been developed over many years through long-term targeted investment, and are a genuinely competitive transport alternative to the car. Public transport services normally hold a very strong position in the Oslo region, but the coronavirus pandemic has resulted in a significant reduction in market share, traffic volumes and ticket revenues. The City Government anticipates a transitional phase of around six months from the abolition of the current travel rules and recommendations before a new normal level of demand for public transport service and ticket revenues is established.  People will need attractive public transport services while travel habits are re-established. If public transport services are scaled down in line with forecasts of reduced demand and ticket revenues, there is a risk that any downward trend will be amplified and that the competitiveness of public transport with respect to the car will be significantly impaired.  Going forward, the City Government will work to increase the overall share of climate-friendly travel by ensuring that pedestrians and cyclists can continue to use these modes of transport, while at the same time encouraging car users back to public transport. The City Government will step up the efforts being made to reduce car use and improve accessibility to public transport. NOK 4 million per year is being set aside during the economic plan period for study and analysis capacity to boost the systematic work being carried out to improve public transport access.

Good access to public transport will be vital in enhancing the competitiveness of public transport with respect to the car. Improved accessibility will also enable better utilisation of the vehicle fleet. The «Vigorous accessibility measures» project began in 2013. In 2021, work began on the seventh package of measures in this project. This work will continue in 2022. On behalf of Oslo Package 3’s steering group, Ruter is coordinating the work relating to an action plan for accessibility in the key corridors of the urban belt. Follow-up of the action plan is expected to commence in 2022.

New trams will be introduced into service through to 2024. The new trams will accommodate more passengers than the existing trams and will be designed according to the principle of universal design. Construction of the Fornebu Line was scheduled to commence in December 2020, with the line expected to be completed in 2027. A number of major public transport measures are currently at the planning stage: a new signalling and interlocking system for the Oslo Metro which will boost capacity in the joint tunnel and improve reliability and punctuality, a new metro hub station at Majorstuen, and a new metro tunnel from Majorstuen to Tøyen via Bislett, Stortinget and Nybrua. The tunnel will enable a five-minute frequency where the traffic base is highest.

Measure 18. Zero emissions/sustainable biofuel in transport when purchasing
goods and services

The joint imposition of requirements will help to ensure that all vehicles used to deliver goods or services to the City of Oslo will use climate-friendly fuel technologies. The imposition of requirements also applies to operating contracts. During the procurement process, emphasis is placed on the suppliers’ proportion of zero-emission vehicles and/or biofuel vehicles (preferably biogas). Requirements regarding vehicles and fuels must either be imposed as a minimum requirement or used as an award criterion in procurements. The climate impact of the use of zero emissions as a result of requirements imposed during the procurement of goods and services is included under measure 9 Zero-emission goods and service transport vehicles and measure 11 Zero-missions/sustainable biofuels in the transport of bulk material and waste from construction projects. The climate impact of the transition from diesel to sustainable biodiesel as a result of the imposition of requirements in the procurement of goods and services has not been quantified. In 2022, the City Government will continue to work actively to follow up and tighten the requirements so that all transport of goods and services under joint procurement agreements (procurements which are carried out for the entire municipality, rather than just one entity) must take place with zero emissions/biogas from 2022.

Measure 19. More efficient goods and service transport

In cooperation with the business community, the City of Oslo will contribute to the establishment of urban terminals for transhipment and freight consolidation and other streamlining measures. The Agency for Urban Environment will appoint a dedicated coordinator who will work on climate-smart urban logistics. Through the innovation project «Goods delivery in the Western Corridor”, the City of Oslo is working closely with the municipalities of Bærum, Asker and Drammen, Viken county council and the Norwegian Public Roads Administration to develop concepts for the sustainable and efficient delivery of goods. Under the MOVE 21 project, the municipality will also work to streamline goods and service transport.

Measure 20. Zero-emission zone

A zero-emission zone is an area that is reserved exclusively for vehicles powered by electricity, hydrogen or biogas. The City of Oslo is investigating how a zone can be established and gradually expanded. The municipality will apply to the central government to establish a pilot project for zero-emission zones, as facilitated through the Norwegian government’s Climate plan for 2021-2030 (Report to the Storting No. 13 (2021-2030)). The study of zero-emission zones will continue in 2022, with the aim of entry into force during the term of the current city government. The City Government is allocating NOK 4 million in 2022 and NOK 10 million annually in 2023-2025 for essential investments in the establishment of a zero-emission zone. A zone is initially being established in Oslo city centre (the car-free “city life area” outside Grønland and Tøyen). Zero-emission zones in Oslo are also a priority area in the EU’s MOVE21 innovation project, which Oslo is leading.

Measure 21. Climate-friendly travel to/from work

Climate-smart travel to/from work is a municipal subsidy scheme. Private companies can receive support for converting parking spaces to other uses (Scrappage for parking), the provision of facilities at the workplace (Active for work), secure bicycle parking, and for smart and innovative solutions (“Oslo’s smartest travel to/from work”). Municipal employers can apply for support for measures which promote climate-friendly travel to/from work, including both physical and other measures, and the City Government is proposing to continue the scheme in 2022 with funding of NOK 10. A service has also been acquired for mapping and consultancy regarding active and climate-friendly travel to/from the municipality’s workplaces. The municipality has also had an outreach bicycle service at municipal workplaces.

Measure 22. Street and parking measures

The City of Oslo is prioritising accessibility for bicycles and public transport over parking spaces, and re-prioritising parking for other purposes as and where needed. The municipality’s parking regulations, which are intended to stimulate reductions in road transport and the transition to zero-emission vehicles, remain in place, and parking fees in the yellow zone and non-resident parking in residential zones will rise by 25 %, in line with previous resolutions. New parking regulations, which set out rules concerning the number and design of parking spaces for cars and bicycles linked to residential and commercial buildings, are expected to be considered at political level during the first half of 2022. The municipality is also trialling a scheme for car-sharing in public car parking spaces. The aim of this trial scheme is to facilitate the greater use of car-sharing, reduce overall car use in Oslo, and reduce public road space used for parking. The trial scheme will be evaluated after 2022.

Measure 23. Zero-emission and/biogas buses not used on local public transport services

The City of Oslo is in the process of developing a package of measures which will contribute to emission cuts from buses not used on Ruter services around Oslo. This primarily applies to express, airport and tourist buses. The work includes a dialogue with bus companies, an assessment of the utility benefits, the establishment of charging infrastructure and the imposition of requirements and award criteria in connection with the municipality’s procurement of bus services. The municipality is working to impose requirements on route permits for bus routes in Oslo and has asked the Ministry of Transport for a reassessment of the legal basis for stipulating climate-related requirements in route permits

Measure 24. Zero emissions/sustainable biofuel for machinery used in construction projects carried out on behalf of private sector and state developers

In 2020, the City Government introduced requirements for fossil-free construction sites in new zoning plans. Preliminary, rough estimates indicate that the requirements proposed by the City Government could cover around 40 % of construction activity in Oslo by as early as 2024, increasing to 80 % by 2030. This instrument will thus considerably reduce emissions from construction sites over the coming years. It represents a vigorous response to new knowledge regarding emissions from this sector.

The City of Oslo will also continue to facilitate the supply of renewable energy to construction sites, partly through the establishment of a new grant scheme under the Climate and Energy Fund.

Measure 25. Zero emissions/sustainable biofuel for machinery used in construction projects carried out on behalf of the City of Oslo

The joint imposition of requirements will help to ensure that all machinery used at municipal construction sites in Oslo will use fossil-free fuel from 2020. During the procurement process, suppliers are rewarded for using machinery which is either zero-emission or uses biogas technology.

Measure 26. Zero-emission motorised equipment

The Climate and Energy Fund provides subsidies to companies which purchase electric motorised equipment. This scheme complements Enova’s nationwide Energy and climate measures in land transport scheme, enabling businesses in Oslo to receive subsidies for purchases of electric motorised equipment of any size.

Measure 27. Central government ban on the use of fossil oil for temporary heating and drying of buildings

A national ban on the use of mineral oil (fossil oil) for the temporary heating and drying of buildings will take effect from 1 January 2022. This ban represents an extension of the ban on the use of mineral oil for the permanent heating of buildings, which was introduced in 2020. Other fossil energy use is not covered by the ban, and it is therefore permissible to use gas of fossil origin, for example. This means that the ban will not necessarily lead to all building drying and heating being fossil-free from 2022. The City of Oslo already requires the zero-emission heating of construction sites in its projects, so the new ban will only have an impact and potential emission reductions in private sector and state construction projects within the boundaries of the City of Oslo.

2.6.5   Activities that provide a basis for further emission reductions

Table 2.3 shows activities which reinforce the climate work being carried out in the City of Oslo and which could provide a basis for future emission reductions. These activities are included in the Climate budget to highlight the wide range of instruments being used to promote emission reductions in Oslo, and indicate where responsibility for the various activities lies. The activities are divided into the following categories: «communication/mobilisation», «facilitating measures» and «studies/plans/pilots».

Table 2.3 – Activities which provide a basis for further emission reductions