The modern office and residential buildings of the Barcode project in Bjorvika district, view from the Opera House – Oslo, Norway
getty
Cities are home to half the world and consume around 75% of global energy, driving over 70% of global CO2 emissions. A report from Arup supported by Prince William’s Earthshot Prize, Champions of Change, singles out two Scandinavian cities Oslo and Malmö among 11 leading global cities driving down emissions through public sector-led solutions.
The report includes Bogotá for its Urban Mobility Plans prioritising equitable transport, Guanghzou’s Bus Electrification Project and Phoenix for its HeatReady heat mitigation and response scheme. Tamil Nadu, India’s first government-backed, cross-sector climate company and the Western Cape’s Industrial Symbiosis Programme are also commended. But what’s different about Oslo is how many sectors its public policies have transformed.
Oslo’s inclusion won’t surprise readers familiar with the city. It has been driving down emissions from transport and the built environment for years. “The streets of Oslo are full of Teslas,” muttered my Swedish neighbour enviously. Al right, the city took away 8,000 parking spaces to prioritise walking and cycling – and critically, made it easier and more enjoyable to do both – arguably at the expense of car-driving inhabitants, but it is a noticeably clean environment.
The former oil capital of Europe has cut greenhouse gas emissions by 30% since 2009 and 85% of public construction projects in the city are now zero-emission.
Arguably the most critical factor in its success has been the city-wide commitment from both major political parties. In 2016, Oslo became the first city to introduce a climate budget which prioritised measures across 3 key sectors: energy and the built environment, transport and resource management. The city quantifies and monitors carbon dioxide emission as part of this budget.
The Climate Budget is a critical part of Oslo’s success, according to Siw Andersen, CEO of Oslo&Co, the city’s official business and development agency. I asked her to go into more details.
HF: Arup commends Oslo’s direction of funding towards climate solutions. How does this work?
SA: We treat greenhouse gas emissions with the same discipline as financial figures. It sits at the centre of every budget decision. It works because accountability across the entire city organisation. The City of Oslo’s procurement power is substantial so when it sets climate conditions on building, procurement and operations, the market responds.
Andersen: transport is still Oslo’s biggest emissions challenge
Ⓒ Jan Khür & Julie Hrncirova / Abrakadabra 2024HF: What are your greatest challenges?
SA: Transport, which accounts for 42% of Oslo’s climate emissions is the city’s greatest climate challenge. Waste incineration then accounts for 27%, so we are working to reduce waste volumes and drive circular solutions.
Construction machinery sits at 14%. Oslo has taken a clear lead in this: we require zero-emission construction machinery on city contracts. This requirement is reshaping the market and manufacturers are accelerating electrification because Oslo is buying differently.
HF: Last time I was in Oslo I saw how architects were trying to use more sustainable materials in construction. Can you give me some examples?
SA: Yes, Oslo has raised the bar in requiring low emission materials and setting strict standards on how buildings are built, operated and material reuse. We are pushing both regulation and innovation simultaneously, because one without the other will move too slowly. For instance, with SmartOslo funding, the city partnered with local startup Over Easy Solar to retrofit vertical solar panels onto an existing green roof at Løren School.
HF: Why do you like this scheme?
SA: This addresses both energy production and stormwater management and has become a European prototype. SmartOslo provided a working example of a startup, the school got a better building, and the city got proof of concept that solves two climate issues. That is exactly how public investment in innovation should work.
HF: So there is an impact on business?
SA: Yes, deliberately. Hovinbyen Circular, Oslo’s innovation district which is dedicated to sustainable urban development illustrates how this is scaled up. Its centre is Construction City, a business cluster where companies working on sustainable construction and circular solutions are co-located.
Oslo also has two global precedent carbon capture projects. Hafslund Celsio is retrofitting its waste-to-energy plant at Klemetsrud with one of the world’s first carbon capture facilities in this industry. When operational in 2029, it will cut 20% of Oslo’s fossil CO2 emissions and remove around 150,000 tonnes of biogenic CO2 from the atmosphere annually.
HF: How is the project financed?
SA: Through a combination of state support, city investment and, critically, large offtake agreements for carbon removal certificates signed with Microsoft and Frontier.
Klemetsrud is also integral to Oslo’s district heating network, meaning the plant directly supports the city’s urban energy infrastructure. It illustrates the way in which public and private financing can realise large-scale climate projects and create new industries.
HF: Just this week, Inherit announced the world’s first carbon removal project from biogas in Norway. Can you tell Forbes.com readers why it’s so significant?
SA: Biogenic CO2 captured from wastewater biogas at the Veas treatment plant, which processes wastewater from over 800,000 residents across Oslo, Bærum and Asker, is now being permanently stored 2,600 metres below the seabed. It’s the first anywhere in the world to permanently store biogenic CO2 from biogas geologically in a collaboration between HoopCO2, Inherit Carbon Solutions and Northern Lights JV.
HF: And how was this financed?
Again, innovative investment was key, including a carbon removal offtake agreement with Microsoft. It could become a blueprint worldwide. Oslo’s Carbon Cluster brings together public and private partners to scale waste solutions. I don’t think a single company could do this alone.
HF: Oslo has a name for innovative climate solution companies dealing with petroleum and other waste, but what you’re talking about also relates to the urban environment. How do you see this developing?
SA: The propTech company Findable is an AI-driven solution that helps property managers organise and search building documentation, flags compliance gaps, and helps them to navigate complex regulatory requirements.
Access to funding is critical. For instance, SmartOslo funding helped LiTech test out its AI-driven sensors that identify nitrous oxide canisters before they reach the incinerator. The metal is recovered, dismantled, and fed back as raw material into local production. As it’s sensor and AI-driven, it can be scaled up from a pilot such as this into full-scale industrial production.
Oslo acts as a test arena. When something works here, it travels.
HF Thank you.