– An environmental policy built on effective competition ensures that environmental goals are attained in the most efficient manner possible. The environment in which companies operate must not undermine the possibility to attain these goals, says Director General for Competition Knut Eggum Johansen.
The statement is a comment on the report, NOU 2009: 16 Globale miljøutfordringer – norsk politikk, (Official Norwegian Report 2009:16 Global environmental challenges – Norwegian policies), which is now the subject of a written hearing procedure.
Similar price for emissions
In its submission to the hearing, the Norwegian Competition Authority supports the recommendation of the committee that all industry and users should pay the same price for the emission of gases that affect the climate.
- The correct pricing of emissions will lead to industry developing new sustainable energy sources and more energy efficient technology. Simultaneously, well-functioning competition will make companies focus on producing more and being innovative and cost efficient. Competition will also ensure that increases in prices to consumers will not be excessive due to companies exploiting their market power, the Director General emphasized.
Business environment for effective environmental policy
The hearing is focused on how consideration for sustainable development should be factored into the public decision-making process. The Norwegian Competition Authority believes that, in addition, there should have been an assessment as to whether increased competition in specific markets can increase the likelihood of achieving the environmental policy goals. For example, high barriers to entry can limit the number or type of participants in a market. Other conditions can limit participants’ capacity or incentives to compete.
When environmental policy is built using market-based tools, it ensures that environmental goals are met in the most cost-effective way possible. The Norwegian Competition Authority points out that well-functioning competition combined with properly targeted tools in environmental policies will place industry in a position where it faces the correct investment incentives.
Will have active oversight
- Competition authorities will contribute to well-functioning competition through active oversight of the energy markets. Not least should the market for the trade of CO2 quotas be closely overseen in order to restrict illegal cooperation, said Eggum Johansen.
Last published:
17/12/2009
Last changed:
17/12/2009
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