INDUSTRY
The industry sector comprises a wide range of industries, responsible for around 60 percent of Norway’s total carbon emissions. Industrial segments include upstream and downstream oil and gas extraction and production, metal production, and the chemical and construction industries. Other industries include cement production and food production.
The Norwegian industry sector (excluding the oil and gas extraction and production segment) has reduced its greenhouse gas emissions by nearly 40 percent since 1990 while increasing production by some 37 percent. Despite this incredible performance, further emission reductions need to be made in coming years. Electrification of different industries is an essential solution for reducing emissions, but some segments of the industry sector (such as cement, steel and plastic production) remain extremely difficult to electrify due to process-related emissions generated in the specific industrial processes that are currently used.
BUILDING
The buildings sector is referred to as the ’40 percent sector’ on the global level, as it typically uses 40 percent of all energy consumed, accounts for 40 percent of greenhouse gas emissions and uses 40 percent of the world’s materials. The sector includes residential properties, public and municipal buildings, and commercial, retail and other buildings. In Norway, emissions from buildings during the operational phase are quite low, as Norway relies mainly on hydropower for electricity production and uses a lot of electricity and very little fossil fuel to fuel the buildings.
Buildings can play a key role in the electrification of Norway, without involving additional electrification in this sector. For heat production, for example, direct electric heating can be substituted by water-based heating using heat pumps. This will reduce buildings’ electricity demand and free up electricity for other uses, in sectors that depend entirely on electricity for decarbonisation.