Opening address
Break-out Session Arctic Circle Assembly 2019
Green Energy Solutions in the West Nordic Countries – The Way Forward
Ríma B Saturday 12 October, 17:30

H.E. Mr Guðlaugur Þór Þórðarson
Minister for Foreign Affairs of Iceland

Dear colleagues Minister of Foreign Affairs of Faroe Islands, Jenis av Rana, and Minister of Foreign Affairs of Greenland, Ane Lone Bagger
Distinguished speakers and participants,
Ladies and gentlemen.

It is my pleasure to open this break-out session on Green Energy Solutions in the West Nordic Countries.

Climate change is a great challenge that demands cooperation and action by all: Government, industry and the general public.

I believe we need stronger and faster progress in all areas of sustainable energy; in access to renewable energy development, energy efficiency and not the least in higher level of financing and stronger policy commitments.

Energy transition is one of the most important actions to combat global climate change. A century ago we turned from coals to geothermal in order to heat up the households of Reykjavík. This decision was brave since we were a poor country that had just regained our sovereignty after 650 years. This remarkable decision is still today the key for the well-being of Icelanders.

I think the situation today calls for actions guided by the same vision and foresight the politicians in Iceland showed 100 years ago.

Iceland is determined to do its bit by reaching the Paris Agreement goals by 2030. Our goal is to achieve at least 40 percent reduction of greenhouse gas emissions by 2030 compared to 1990.

In addition, Iceland has also decided to aim for 50% increase in carbon uptake before 2030 and to reach full Carbon Neutrality by 2040. For us this effectively means that we need to decarbonize transport and fisheries.

This is not only the task for us, politicians, but it is essential to strive for the full participation of and cooperation with the private sector. Actually, last month we established a special forum for with the private sector on climate and green solutions.

Dear guests,

The Nordic countries, including our closest neighbours, Greenland and the Faroe Islands, are among the leaders of the green energy transformation.

Last week Nordic Energy Research published a report on how the Nordic countries are progressing towards carbon neutrality, tracking the Nordic clean energy progress.

The report focuses on several areas and I would like to mention three of them.
Transportation is where we have most to gain in reducing our carbon footprint.
Electrification of transport is likely to become the single-most important measure in the long-term transition of the transport sector to renewable energy.

I am happy to tell you that Iceland has the second highest share of electric vehicle sale in the world, 17% of new cars where electric in 2018. Only Norway does better. Furthermore, our newest ferry that sails between the mainland and the Westman Islands, is electric, charged in port. This is the first electric ferry that runs on an open-ocean-route.

Second, the Nordic energy intensive sector is already relatively energy- and material-efficient, but there are still considerable gains to be made in decarbonizing of industry.
Therefore, the Icelandic Government has signed a memorandum with the energy intensive industry, (aluminium, ferrosilicon and silicon) on applying carbon capture and storage technology (CarbFix) developed at Hellisheiði geothermal plant. This technology captures CO2 and pumps it into certain rock formations, turning it into solid minerals.

It is our hope and ambition that this exciting technology can be developed further, scaled up and adapted for global use. If that will materialize it will mark a big step in the fight against climate change.

Thirdly, buildings account for a third of final energy demand in the Nordic countries. We must therefore create the conditions and lower the barriers for the building industry to build more energy efficient and smart buildings.

Ladies and gentlemen,

The West-Nordic countries are doing relatively well when it comes to renewable energy, but there is still much work to do.

The islands here in the North Atlantic face challenges that are in some ways different from the challenges of the bigger Nordic countries and specific to small Arctic communities.
Remoteness, off-the-grid, and weather related challenges are extreme and difficult. Therefore, it is important that we share our solutions and experiences, that we explore together the way forward.

This is why we are meeting here today and indeed every year in Harpa at the Arctic Circle.

I wish you a fruitful session.