ABSTRACT

This chapter explores how, why and to what extent Norway has embarked on the transformation towards a low carbon economy, as a response to the global challenge of climate change. Norway's low carbon strategy and the prospects for change are analysed from two perspectives with different relevances for varieties of capitalism varieties of capitalism theory. The first, a domestic politics perspective, indicates that the key drivers of change in the face of an international challenge can be found at the domestic level, rather than emanating from abroad. The second perspective takes us from domestic politics to the external context, particularly the European Union (EU). The EU's decarbonisation target – reducing greenhouse gas emissions by 80–95 per cent by 2050 – may affect Norway's climate policy and energy strategies in various ways. EU legislation may directly affect Norwegian public policy for low carbon transformation. EU policies may affect domestic alliances and institutions by strengthening alternative energy technologies.