Law and policy of combining carbon pricing and transition to renewable energy sources for the purposes of reducing greenhouse gas emissions on the example of Norway and the UK
Chapter I. The key elements of climate change problem_________________________
Chapter II. The global concern of carbon pricing, renewable energy and reducing GHG emissions________________________________________________________________
Chapter III. Current position of Norway and the UK in climate change and energy policy_
Chapter IV. Legal regulation of carbon pricing, renewable energy and reduce of greenhouse gas emissions in Norway and the UK________________________________
Nowadays the topics related to the climate change problems are the top interest for all parts of the society. According to the United Nations Framework Convention on Climate Change (UNFCCC), this means “a change of climate, which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods” . The whole planet is faced to the possibility of continuation of global warming and the dramatic consequences caused by it.
There are many possible scenarios of which outcomes can appear because of the change of the climate. In addition, there is a clear relation between the climate change and the concern of the world society about this problem. The cost of climate change is very high, and people and governments realize that they have to deal with it in order to live in a better place in 50, 100 and more years after.
One of the key elements of the global climate change is the increased in recent centuries greenhouse gas emissions (GHG). Even if the greenhouse gases have existed since the birth of the Earth, it is not correct to argue that the global warming is a natural process. The problem is that the total amount of these gases has upgraded in recent centuries.
In this project, I want to put my attention on two methods of influencing the decreasing of negative effect of global climate change. As we can see, the modern society realize the danger of environmental issues, so many states try to manage with it not only in international level, but also through national policies.
Thereby, I want to cover the implementation of different types of carbon pricing policies and the transition to renewable energy sources in order to reduce the GHG emissions. I have chosen these ways of solving the climate change problems because they seem to be the most effective in compresence with other existing, but not excluding them. Moreover, they are widespread around states, and such policies we can see in Norway and the UK, which I have chosen for a kind of joint review in this paper.
Writing this project, I will not only focus on the example of Norway and the United Kingdom, but I will also examine the attitude towards the problem of climate change on the international and regional levels. I want to check actions made by the World Bank, which has activated during last years, attempts of the United Nations, which are designed in several international agreements, and the efforts made by the European Union (EU) and European Free Trade Association – European Economic Area (EFTA-EEA).
Additionally, I want to put there some points about the reason to choose Norway and the United Kingdom to compare with each other. Norway has a developed position in a field of using renewable energy sources and has a well-organised energy industry; in addition, it is one of leading producer in oil industry. Norway obtain a developed potential of innovations in a field of alternative energy sources, moreover, Norway was always about to invest in climate commitments and to facilitate developing countries to use their renewable energy resources and to put attention on climate change adaptation. Finally, the Government of a state has an approach to make Norway an environmentally friendly energy nation, which should encourage other nations and governments to make changes in their energy sectors and to develop renewable energy use.
As for the UK, which was during a long period of time one of the world’s first industrial-scale CO2 emitter, now it takes efforts to decrease the negative impact on the environment. In addition, the state has gaps to obtain a certain level of renewables in national energy sector up to 2050. The key element of the policy of the UK nowadays is the process of leaving the EU, which also affects every part of policy and legislation, especially energy and environmental.
After the analyses of the policies and legislations of these two states and the overlook at the international practices, I will be able to say whether it is effective or not to combine carbon pricing and transition to renewable energy sources for the purposes of reducing greenhouse gas emissions.
Pricing greenhouse gas emissions is obviously an essential part of environmental policy. Pricing emissions with taxes, emissions trading schemes or with a combination of these instruments encourages emitters to look for less expensive and more environmental-friendly ways of doing business. The reason why carbon pricing is so effective lays in the increase of the price of carbon-based energy, which encourages to seek and transit to greener energy sources, like a variety of renewable energy sources.
Here goes the strong liaison between these three parts of effective environmental policy and legislation: the introduction of carbon pricing let the transition to renewables more obvious. As a result, the amount of greenhouse gas emissions decreases, and the environmental situation goes to its best. The state can reach their national and international targets.
However, the effectiveness of such policies highly depends on every particular state. The effectiveness of carbon pricing is related to the rate of this price or the rate of the tax. The higher it is, the better it works. According to OECD, only few states provides an effective policy in carbon pricing area. It also depends on the level of corruption in the country, on the interest of society and government in environmental problems.
One of these states is Norway, which is the main character of current study. It provides both high rate of national carbon tax, it takes part in EU ETS, it uses mostly renewables in internal energy sector and puts ambitious goals in a field of GHG emissions reducing. The controversial thing is that this state on its own is the biggest fossil-fuels producer and exporter. Is it fair enough?
As for the United Kingdom, this state also makes sufficient steps towards effective carbon pricing policies and transition to renewables. It has attainable targets of reducing GHG emissions. However, the main issue for the whole state is the Brexit and how it would deal with it, which way it would choose. Having strong relations with the EU for a long decade, it could be hard to decide wisely.
Nevertheless, many studies and researches show us, that the combination of carbon pricing and transition to renewables works and the Planet has a chance to survive.
