Green Project Classification and Green Reporting

A proposal for how the project can be implemented has been prepared in collaboration between a number of key actors within the Norwegian policy instrument framework – Innovation Norway, the Research Council of Norway, Siva, Eksfin, DOGA, Enova and Gassnova.

The policy instrument actors have committed to the work of classifying and reporting on green projects. This effort is not only a response to the government’s mandate but also an expansion of the existing cooperation to promote green growth. Through close dialogue with the NFD, which acts as a coordinator among relevant departments, it is ensured that the project is developed in harmony with the overarching goals for the environment and climate.

Three ministries are central

Ministries such as the Ministry of Climate and Environment (KLD), the Ministry of Education and Research (KD), and the Ministry of Energy (ED) play key roles in this process – through their ownership and management of respective entities such as Enova, the Research Council and Gassnova.

Starting this year, the actors will implement a classification of projects assumed to have a positive effect on climate and the environment, based on six environmental categories. This includes a commitment to develop a guide for green project classification and reporting, which will facilitate case handling and ensure involvement of relevant departments in an appropriate manner.

The further development of the reporting solution will also focus on the “do no significant harm” principle, which lays the groundwork for a differentiated assessment of the projects. There is a push for a dynamic development of the reporting system, which can be adjusted based on experiences and general development within the field. 

Norway takes the lead

In a time when climate change poses one of the greatest challenges for global sustainability, Norway takes the lead with this new initiative. The core is to promote sustainable growth through a systematic approach to project categorization based on environmental impact. By providing detailed statistical data and clear guidance for environmental categorization, the aim is to enhance project developers’ ability to carry out measures that are both innovative and environmentally friendly. This occurs in line with the EU taxonomy for sustainable economic activity – ensuring Norwegian projects to meet not only local but also international sustainability standards.

Challenges and solutions

One of the biggest challenges in the implementation of green project classification is the complexity related to evaluating projects’ environmental impact. Therefore, simplified assessment criteria are proposed balancing the need for thorough environmental assessments against the feasibility of the projects. This will ease the burden on project developers while simultaneously improving the availability and quality of environmental data for the public and decision-makers.

A differentiated system ensures that projects of various scales and nature can meet sustainability requirements without being overwhelmed by the complexity of reporting requirements.

The way forward

To ensure that progress and experiences are shared, the policy instrument actors will report to the NFD by the end of May this year, with a status update on the implementation of classification and reporting. This will be followed by an evaluation to measure the effectiveness and impact of the measures, forming the basis for decisions and adjustments in the work going forward.