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Analysis of Norway’s competitiveness in energy transformation From Carbon neutralization

The following is the Analysis of Norway’s competitiveness in energy transformation From Carbon neutralization recommended by recordtrend.com. And this article belongs to the classification: new energy, Boston Consulting.

In order to successfully achieve the energy transformation, Norway must take immediate action

The Norwegian Business Association (NHO) is the largest business lobbying organization serving employers in Norway. It is committed to creating and maintaining good social conditions and ensuring the competitiveness and profitability of Norwegian industry and commerce. The Federation has drawn up a road map for the future development of Norwegian enterprises and stressed that energy transformation will become a major growth area in the coming decades, especially for export-oriented enterprises.

Norway can take advantage of many competitive advantages related to energy transformation to maximize the transformation dividend. Norway is rich in natural resources and has a strong academic and research environment in related fields. Many Norwegian companies have successfully created new green jobs.

At the same time, some countries have taken active actions to prepare for energy transformation. The new business model emerging in the green value chain will lay the foundation for employment in the energy sector and other fields in the future. The green footprints of the COVID-19 recovery plan and the EU green new deal highlight the momentum of European energy transformation. In this context, Norway must make a wise choice in the energy transformation in order to maximize the value and employment opportunities brought by the energy transformation.

Measuring Norway’s competitiveness in energy transformation

BCG and NHO have jointly established a “competitiveness meter” to quantitatively rank the competitive position of specific countries in energy transformation. The purpose of the instrument is to identify and measure the sources of competitiveness of countries in terms of economic growth related to energy transformation, focusing on technology areas with strong export potential. Our goal is to identify commonalities and rules among successful countries, and what other countries can improve.

Based on the World Economic Forum (WEF) and the framework for measuring national competitiveness recognized by the European Union, we have developed the measurement method and adjusted it for the purpose of energy transformation, mainly covering five dimensions: human capital, market and capital, policy framework and incentives, natural resources and infrastructure, technology and innovation. Each dimension has a set of measurement indicators to ensure the quantitative, transparent and objective comparison. Over time, this comparison can remain robust and expand to more countries“ There are 30 different indicators distributed in each dimension.

In the European region, Norway participates in the assessment with ten other relevant European countries to measure their competitive position. To assess Europe’s global performance, we used the same framework to conduct a preliminary quantitative assessment of five countries outside Europe.

In order to supplement the results of the above quantitative analysis, we conducted interviews with leading Norwegian enterprises and obtained qualitative analysis, so as to identify the growth opportunities in the energy transformation, as well as the necessary conditions for successful export opportunities and job creation.

Norway has a solid starting point, but failed to make it to the podium

Analysis shows that Norway ranks fourth in Europe, behind Denmark, Germany and Sweden.

As the results of the competition in Figure 2 show, Scandinavian countries and Germany are at the top. Norway has a solid starting point, rich natural resources and a solid foundation of human capital, technology and innovation. The country has a huge oil industry and a large number of highly skilled future workers in the energy field; In universities, the proportion of technical students is very high. In addition to the perfect transportation system and power infrastructure, Norway also has abundant hydropower resources and natural gas, which brings great advantages to it.

From Figure 3, we can see that Norway lags behind the leading countries in some dimensions, especially in the two dimensions of “policy framework and incentives” and “market and capital”. On the one hand, the Norwegian government has relatively few environmental financial subsidies and direct economic stimulus, which leads to its low score of “policy framework and incentive measures”. On the other hand, the labor cost of Norway is higher than that of other EU countries, which will make Norway bear a higher cost in the scale development of energy transformation, so that it also falls behind in the dimension of “market and capital”. In contrast, Germany is the leader in “market and capital”, while Denmark has set an example in “policy framework and incentives” and “technology and innovation”.

Our analysis shows that compared with other leading countries in the world, European countries are in a strong competitive position in the energy transformation. Of all the countries included in the assessment – the United States, Japan, China, Australia and Canada – scored lower than Norway, with Japan closest to the top three in Europe.

Norway can improve its competitiveness by learning from successful countries

Norway’s strong comprehensive score and its advantages in natural resources and human capital have laid a solid foundation for the country’s energy transformation. In the competition with Europe and the world’s top countries, a strong foundation is important, but the country itself is not enough to create a sustainable competitive advantage. The outstanding characteristics of the winning countries are worth learning from Norway: they can link up different advantages through long-term overall strategy.

Take Denmark as an example. Denmark has set a grand goal of reducing carbon dioxide equivalent by 70%, while focusing on creating long-term competitiveness, wealth and employment opportunities. This goal has been written into law and is the responsibility of the Ministry of climate and energy. In order to achieve this goal, the government has established a partnership with the business sector to ensure that business representatives are consistent with the government on environmental issues and to promote the progress of the business sector in the field of environmental protection. The government has entrusted the responsibility to the business sector to effectively determine relevant measures, set priorities, and let the business sector make suggestions according to business needs.

In addition, Denmark has adopted a comprehensive and long-term development strategy in priority areas such as wind energy and energy efficiency for more than 30 years. As part of this strategy, the government allocated a large amount of subsidies at the beginning of the long-term profit plan.

Norway can learn from successful countries to improve its competitiveness. Norway needs a clear direction for energy transformation, an overall strategy to pool all advantages, and a clear cooperation and responsibility relationship between government and enterprises.

The success of energy transformation needs national strategy

The strong momentum of energy transformation in various countries intensifies the sense of urgency. Norway needs to set a clear and consistent direction for energy transformation. Norwegian businesses are ready, but in order to focus on the right opportunities, the private and public sectors must unite and adopt a holistic strategy. We suggest a “three-step” strategy

Strategy one

Building partnerships between the public and private sectors. Inspired by Denmark, Norway needs to build a strong partnership between government and business, covering all relevant sectors in the energy transition. The partnership aims to coordinate public investment, private sector interest and academic research to achieve the same goal.

Strategy 2

Develop specific industry plans. Each partnership should be responsible for identifying the initiatives that Norway can best leverage its competitive advantage in a particular sector. Enterprises should take an active part in policy recommendations and strive to create export opportunities, wealth and employment demand in the renewable energy sector while reducing carbon dioxide emissions. Business must be responsible for the goals assigned to each industry.

Strategy 3

Ensure accountability and track progress. Only a single enterprise or institution can not complete the large-scale transformation. As with any other transformation, we propose to establish a strong coordinating body to ensure intra industry and inter industry cooperation between enterprises and institutions. The coordinating body needs to set goals and track the progress of each department.

Norway needs to show national leadership and set a clear and consistent direction for energy transformation. Only through the joint efforts of interdisciplinary and traditional boundaries can we make full use of our competitive advantages in the energy transformation.

Norway’s energy transformation experience is a valuable reference for China’s own transformation strategy. In the process of energy transformation, China has abundant renewable energy resources, and has laid a good foundation for new energy industry in the past two decades. In the future, China should continue to play the key role of policy, make clear the direction and route of reform, and send clear signals to stakeholders in the energy sector, so as to create a more attractive market investment environment. At the same time, the business sector should actively cooperate with the government to jointly use technological innovation and human capital to promote the implementation of energy transformation.

More reading: towards 2060 carbon neutrality: focusing on opportunities and challenges on the road of decarbonization Analysis on B2C competitiveness of Chinese cosmetics such as Jumei premium products Yiguan International: analysis report on hotel price competitiveness in the first half of 2012 competitiveness of three low cost airlines in the world National Energy Administration: wind power grid connected operation in the first half of 2019 BCG & China Foreign Trade Trust: China Trust Industry Report in 2017 (attached with download) towards zero carbon: green world economy based on scientific and technological innovation Economic Forum: report on promoting effective transformation of energy system in 2021 passenger Union: sales volume of China Tesla exceeds 35000 vehicles in March 2021, a sharp increase of 90% shell: Outlook report of liquefied natural gas (LNG) in 2021 China Academy of Petroleum Economics: 2050 world energy outlook – 2020 Version (with download) net zero carbon building: international trends and policy innovation (with download) National Bureau of Statistics: energy in October 2020 IEA: renewable energy power generation will account for nearly 90% of the global new generation in 2020

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