The Climate Budget

Climate Agency of the City of Oslo
The Pitch

The Climate Agency of the City of Oslo pioneered a first-of-its-kind climate budgeting tool to incentivize mainstream, holistic and accountable climate action. The flexible tool can be adjusted to any city’s capacity, resources and level of ambition. 

The Problem

Oslo faces increased climate threats including heavy rainfall and flooding, drought and heat waves. Globally, cities contribute up to 80% of greenhouse emissions across a complex array of sectors, industries and sources. In 2015, Oslo decided to cut GHG emissions by 95% compared to 2009 levels by 2030.  

The Process
  • Developed a guidebook for establishing a carbon budget
  • Worked strategically with the private sector at the local, national and regional level to spur innovation, including organizing market dialogues about net-zero solutions
  • Promoted solutions developed through the Climate Budget process in venues like the EU Net Zero Cities and the EU Big Buyers Initiative
  • Showcased public procurement as a strategic climate mitigation instrument for the construction sector
  • Supported market development for zero-emissions construction machinery 
The Impact
  • Expanded its scope of impact: ~200 municipalities adopted the Climate Budget
  • Established fossil-free infrastructure such as city-wide charging outlets, reduced parking, mobile charging at construction sites, an electric ferry and carbon capture technology at the main waste incineration plant (Klemetsrud)
  • Supported investments in energy-efficient infrastructure as well as subsidies for insulation and energy smart rehabilitation of existing buildings
  • Improved the circular economy, facilitating reuse of materials for the built environment
  • Promoted local business: The Beehive and Oslo Centre for City Ecology provided a meeting space for city residents to develop and facilitate sustainable urban life, catalyzing urban farms and sustainable consumption projects  
  • Preserved and strengthened green spaces and increased green, multi-functional solutions and provisions on climate adaptation
  • Transformed Oslo’s process of governing: Anchoring the process within the Department of Finance signaled commitment, ensured transparency and predictability of funding, encouraged compliance, and enabled a whole-of-city approach to climate-friendly planning; while the identification of responsible entities created accountability for meeting targets
  • Tracked of GHG emissions alongside city finances, guaranteeing transparency on progress  
  • Encouraged city staff to collaborate across traditional silos, supporting new skills development, coordination and efficiency
  • Changed public behaviors and attitudes: Annual polls commissioned by the Climate Agency showed that “most people” used public transportation and took measures to reduce their food waste, the share of electric car and bike users grew, and more people made efforts to reduce their own consumption
  • Built 100 kilometers of new bike lanes
  • Increased cycling by 51% since 2016
  • Reduced public transit fares for youth, students, the elderly and asylum seekers
  • Reduced citywide GHG emissions by 13% since 2016 from 2009 levels
  • Electrified nearly 100% of Oslo’s public transit fleet