The Nordic Race to a Fossil Free Transportation Sector – how can the US follow and accelerate its transition?

Opening remarks by Guðmundur Ingi Guðbrandsson, Minister for the Environment and Natural Resources

Ministers, ladies and gentlemen, dear friends.

The Superbowl is a revered American institution, and the Superbowl TV commercial is a revered institution within that institution. A Superbowl commercial is a sonnet of salesmanship, the gospel according to the church of commerce.

That gospel is not always to the liking of environmentalists. But it is a hopeful sign of the times that the last Superbowl featured a funny ad by General Motors, promoting electric vehicles. To the delight of us Nordics, it featured actor and comedian Will Ferrell insisting on the importance of beating Norway in electric car ownership. That is something Icelanders can related to.

Iceland wholeheartedly agrees with the importance of electric cars. We are currently in second place in the sale of electric vehicles per capita, after Norway. But we will keep trying.

It would be good if the race for cleaner cars and a greener world was as fun and lighthearted as a Superbowl commercial. But getting the climate right is a serious race; one that we cannot afford to lose. And one that we all need to win. The climate crisis is our most important long-term challenge, a true threat to civilization. It may sound dramatic, but a wrong turn in this race will have us driving off a cliff. Let´s not do that.

Transport is a big source of carbon emissions, with around 13% share globally. It is positive that we have a growing fleet of electric car models. But we need more. We must move from fossil fuels to clean energy in transport – and in other fields – with an unprecedented speed.
In that task, governments have a big role to play. But what role? Let me give Icelandic examples which I hope can be helpful.

Iceland is second to none when it comes to overall share of clean energy. Almost 100% of electricity production and heating comes from renewables. This was largely thanks to government policy and support for a clean transformation in heating, using geothermal energy.

Now we are pushing for a similar transformation in transport. The government waives taxes and fees to make clean cars affordable. The government also supports infrastructure for electric transport. Government grants are developed in cooperation with stakeholders and tailored towards ensuring wide access to charging and clearing bottlenecks. PÁSA. The result: charging stations have sprouted like mushrooms in recent years, and drivers have gained confidence in this new technology.

In the first three months of this year over half of the cars sold in Iceland were electric cars or plug-in hybrids, and 67% were considered “clean cars” according to the government tax waiving scheme. That share was 60% in 2020 and 28% in 2019. So, we are seeing a quick and decisive transformation.

Three lessons from these initiatives.

First, government support works. Iceland’s clean energy transformations – in heating and in transport – would have been much slower without such support.

Second, partnerships are essential. Government support works best in cooperation with industry, consumers, local governments, and others.

Third, clean energy change is less costly than it seems. Think investment, not expenses. Few investments have paid off and improved the quality of life for Icelanders as much as developing clean geothermal power. Clean energy brings multiple benefits, including saving the planet. Now, that is quite a benefit.

The Nordic countries are small in a global context, but we all want to do more than our fair share in climate affairs by setting an example, and by exporting clean solutions and success stories. The United States is a superpower and a key player in our common task of building a greener future and avoid a climate catastrophe. I did my master’s degree in the US at the beginning of this century, and I have followed US politics for a long time. I am really excited by recent developments in the US; it is great news for the planet and will bring new opportunities to America. An interesting tidbit: For the first time in decades the best-selling car in Iceland in 2020 was an American model. Congratulations, Tesla.

Ladies and gentlemen,

I hope the United States will join Will Ferrell and Iceland in our quest to beat Norway in the speedy introduction of electric cars. Maybe we will succeed. Just maybe Norway will hold on to their lead, they have surely earned it, let´s be honest. But in the race towards green technologies and planet-saving solutions, we will all be winners by putting in serious effort and resources. Our task is immense, and time is short. But we have momentum in new pledges and increased effort by the US and many others. Let us build on this momentum and hit the accelerator in the race for a livable planet for us and for future generations.

Thank you.