– It will probably be a surprise – E24

In all the years, Norway has prided itself on renewable hydropower, the “green battery” that makes the country one of the world’s leading environmental nations.

But in the new EU recommendation to investors, the so-called “green taxonomy”, hydropower is not considered as green as solar and wind power. The reason is the significant invasions of nature that this form of renewable energy entails.

– Probably a surprise to many, says Parliamentary Representative Espen Barth Eide (Labor) to E24.

– Now even existing hydropower will not be considered green, because it has the entire life of the plant. Although the procedure has been done for a long time, it is not considered green. Then hydroelectric power will have worse conditions for financing and the availability of capital will be much lower, he says.

– Not fully followed in class

Eide believes that Norway should have been closer to the process in which the EU has tried to classify what is green investment and what is simply greenwashing.

– I have the very clear impression that one has not fully followed the class on the Norwegian side, and so far neither on the swedish sidesays Eide.

This week, he raised the issue with the Minister of Climate and Environment, Sveinung Rotevatn (V), at the Storting Question Time. Rotevatn noted that the classification that has now been presented is only a proposal from the European Commission, and that it is now in the process of consultation. The deadline for submissions is December 18.

– Of course, from the government we will consider whether we should give input in the consultation and, if so, what, Rotevatn said at the Storting on Wednesday.

He says he has met with the Vice-President of the European Commission, Frans Timmermans, about this. Norway also participates as an observer in the EU Commission group that looks at sustainable funding and ranking (the EU green taxonomy). Rotevatn works with input to the EU consultation.

– Hydropower is a problem, there are also other problems that apply to wind power, that applies to investments in carbon capture and storage, that applies to investments in zero-emission supply vessels, for example, Rotevatn says.

– So here are a number of things that we need to go deeper into, and then we need to go back to Norway’s positions in that area, says the Minister.

– On a berry trip

In the debate at the Storting, Ole André Myhrvold (Sp) was also critical of the government.

– Can we expect the government to defend clean Norwegian hydropower now and against unrealistic proposals and decisions from Brussels that do not fit the Norwegian reality, asked Myhrvold.

Parliamentary representative Terje Halleland (Frp) also believes that it is strange that hydropower is not considered as environmentally friendly as solar and wind. This week he asked a written question in which he asked the Minister of Oil and Energy, Tina Bru (H), to take action.

– I was very surprised when I understood that the EU classification system could affect Norwegian hydropower as unsustainable, writes Halleland in an email to E24.

– This shows how quickly a system can end up on a berry trip, he adds.

Halleland agrees with Eide that the government should try to change the position of the EU Commission.

– We should not get into a situation that somehow favors the sun and the wind over the water when this is not justified, writes Halleland.

– a little funny

The representative of the Storting, Lars Haltbrekken (SV), reacts to the EU’s attitude towards hydropower.

– I think it’s a little funny. It should not be underestimated that there are significant natural challenges with hydropower. But here it has almost been placed in the same cabin as oil and gas. It’s weird, Haltbrekken tells E24.

Haltbrekken points out that very few EU countries have the same experience with hydropower as Norway. He also believes that the Water Framework Directive is important because it will correct the mistakes of previous hydroelectric development. But he thinks the EU will change its mind.

– I think there is total pressure to rectify this now. But it should not be underestimated that there are natural challenges with developing hydropower, he says.

Statkraft follows the process closely

In the European Commission proposal, hydropower is considered to make a “significant contribution” to climate cuts. At the same time, the EU establishes a series of technical requirements for hydropower to be considered sustainable.

Norwegian hydroelectric giant Statkraft says the criteria may have consequences for hydropower.

– We are therefore following the process closely, writes Statkraft spokesman Lars Magnus Günther in an email to E24.

– We will provide concrete inputs that make these criteria more relevant and prevent hydroelectric energy from being perceived as less sustainable. We do this work together with Energi Norge, the European industrial organization Eurelectric and other hydroelectric companies, he writes.

Statkraft hopes that hydroelectric nations like Norway, Sweden, Finland, Austria and France will also contribute to the EU proposal.

– There is currently one underway consultation process which is open to improvement, and we have a good dialogue with the Norwegian authorities on these issues, writes Günther.

Both the government and Statkraft support the EU’s decision to classify whether investments are green or not. But Statkraft hopes it will be possible to influence the proposal to make hydropower work better. Otherwise it may be more expensive to raise capital for hydroelectric projects.

– The taxonomy could also have an effect on how cheaply we can obtain capital markets financing for our various projects, and how attractive such financing can be to investors and financial institutions, Günther writes.

– A good initiative

Espen Barth Eide fears that this ranking will make investors prefer to finance wind and solar because it appears greener in their reports.

– It is important to emphasize that the EU taxonomy does not say that hydroelectric power should not be built. It comes down to whether this is recorded as sustainable in company accounts and investor reports, says Eide.

He supports the idea of ​​creating such a classification, but hopes that it can be changed.

– The green end of the EU is important to us. It is advisable to make such a taxonomy to be able to evaluate what is real green and what is green wash. It’s a good initiative, but Norway should be involved when the rules are formulated and not after, says Eide.