Norwegian local authorities sell emission reductions to finance climate action plans
The Norwegian Association of Local and Regional Authorities (KS) has developed a mechanism whereby local authorities outline their planned climate measures and sell the calculated emission reductions to the national government.
This new mechanism, named KLOKT, provides an alternate means of financing local climate and energy action plans, while encouraging municipalities to reduce their CO2 emissions and become more climate-friendly.
In order to avoid the emission reduction calculations becoming a part of the price negotiations between the national government and local authorities, the county in which the municipality is situated undertakes the price negotiations on its behalf.
Once the planned climate measures successfully implemented, local authorities are free to keep any excess money but, conversely, are responsible for paying for any potential deficit.
KLOKT is the result of a research and development project, started in 2008 and financed by KS, which also includes a web-based calculation tool for quantifying the effects of climate measures in areas under local government authority.
Norwegian local and regional authorities and CEMR
The Council of European Municipalities and Regions (CEMR) has one member association in Norway: the Norwegian Association of Local and Regional Authorities (KS).
KS, which was founded in 1972, aims at strengthening the role of its members as employers and at increasing their freedom of action. Presided over by Halvdan Skard since 1992, it advocates the interests of its member municipalities and counties vis-à-vis the national government, the parliament and labour organisations as well as advises and informs them on matters of importance to local and regional government.
'It is important that governments of all kinds devolve power, funding and responsibility to the lowest possible level," underlines Sigrun VÃ¥geng, director general of KS.
As of 2006, all 430 municipalities and 19 counties are members of KS, as well as close to 500 public companies, for which KS conducts collective negotiations and bargaining with labour unions.
Local and regional government in Norway
Norway is a unitary state composed of 430 municipalities (kommune) and 19 counties (fylkeskommune).
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Climate, Sustainable Finance Officer
