3 Regulation for a more circular economy

To transition to a more circular economy, Norway must establish new, clearer and more ambitious measures. It is crucial that the regulations contribute to products that can accelerate more circular production and consumption patterns, and that the available resources from waste can be utilised in a better manner. Norway is a small and open economy, however, and we also support the development of common European regulations in this area. With a view to achieving both national and international climate and environmental goals, and with regard to ensuring competitive terms for Norwegian business and industry, Norway must observe regulatory developments elsewhere in the EU/EEA. Much of the legislation that will now be introduced is at the core of the single market, of which Norway is an integral part, and will replace and expand legislation that has mainly already been incorporated into the EEA Agreement. All new regulations will be considered for incorporation and implementation in the usual manner.

Box 3.1 A strong driver of circular economy

The European Commission has presented comprehensive and complex legislation as a follow-up to the European Green Deal. One of the key deliverables under the European Green Deal is the EU’s Circular Economy Action Plan from 2020, which contains 35 action points, the majority of which entail revised or new regulations at pan European level. The EU’s goal is to adopt most of the overall regulations for the circular economy by the end of 2024, and the Commission will make active efforts going forward to develop complementary regulations, such as under the Ecodesign for Sustainable Products Regulation (ESPR) and the Batteries Regulation.

In addition to product characteristics requirements, sustainability is strengthened in the production phase through regulatory changes aimed at ensuring sustainable production of the products on the European market, including requirements for sustainable extraction and processing of raw materials. Examples include the revised Industrial Emissions Directive (IED), the European Critical Raw Materials Act (CRMA) and the Net-Zero Industry Act (NZIA), all of which set out measures targeting the manufacturing sector with a view to transitioning to circularity.

The Norwegian environmental authorities have generally been positive to and supported the proposed regulations and have submitted input regarding Norwegian interests where necessary. Norwegian businesses and organisations are encouraged to actively participate as early as possible in the regulatory processes and provide their input directly to the European Commission.

Figure 3.1 Overview of relevant EU initiatives and regulations

Proposals that may be submitted (not exhaustive)

  • Directive on E-waste (Ministry of Climate and Environment)
  • Sewage Sludge Directive (Ministry of Climate and Environment)

Current proposals

  • Green Claims Directive (Ministry of Children and Families)
  • Directive on Soil Monitoring and Resilience (Ministry of Climate and Environment / Ministry of Agriculture and Food)
  • Regulation on preventing plastic pellet losses to reduce microplastic pollution (Ministry of Climate and Environment)
  • Regulation on circularity requirements for vehicle design and on management of end-of-life vehicles (Ministry of Climate and Environment)
  • Revised Waste Framework Directive (Ministry of Climate and Environment)

Regulations that have been endorsed or formally adopted

  • Batteries Regulation (Ministry of Climate and Environment)
  • Construction Products Regulation (Ministry of Local Government and Regional Development)
  • Common Charger Directive (Ministry of Digitalisation and Public Governance)
  • Single-Use Plastics Directive (Ministry of Climate and Environment)
  • Right to Repair Directive (Ministry of Justice and Public Security)
  • Green Transition Directive (Ministry of Children and Families)
  • Packaging and Packaging Waste Regulation (Ministry of Climate and Environment)
  • Critical Raw Materials Regulation (Ministry of Trade, Industry and Fisheries)
  • Net-Zero Industry Act (Ministry of Trade, Industry and Fisheries)
  • EU Regulation on Certification of Carbon Removals (Ministry of Climate and Environment)
  • Fertilising Products Regulation (Ministry of Agriculture and Food)
  • Waste Shipment Regulation (Ministry of Climate and Environment)
  • Industrial Emissions Directive (Ministry of Climate and Environment)
  • Updated framework to measure the development of a circular economy (not regulations) (Ministry of Climate and Environment)
  • REACH Regulation Annex XVII Restriction on Microplastics (Ministry of Climate and Environment)
  • Ecodesign Regulation (Ministry of Climate and Environment)

3.1 Regulations for sustainable and circular products and value chains

Through the EEA cooperation, Norway is involved in developing a common European and strengthened regulatory framework for sustainable products throughout their life cycle, starting with the extraction and processing of raw materials, manufacturing, ecodesign, as well as the use and waste phase. This is common European legislation at the core of the single market. The new and reinforced requirements mean that sustainability must be ensured throughout a product’s life cycle. The requirements that relate to specific products comprise, firstly, the requirement that products are designed to conform as well as possible to a circular economy, with the least possible environmental impact and resource consumption (ecodesign). It is important to address these considerations at an early stage, since as much as 80 per cent of a product’s total environmental and climate impact is determined during the design phase.11 A key measure as such is the new framework for the design of sustainable products (the Ecodesign Regulation), which will cover virtually all types of products.

Secondly, the sustainability requirements will be strengthened specifically in priority product areas of particular economic and environmental importance. In these areas, requirements are made for the entire life cycle, from the production stage, through the use phase and including the waste stage. At the core of these requirements are strict criteria for designing products that can be used and reused for the longest possible duration, and for the utilisation of waste materials and the use of secondary rather than new raw materials in new products. The overarching goal is to reduce the overall pressure on natural resources in the entire value chain of specific products or product groups. In order to strengthen the impact of more sustainable products on the market, strong emphasis is also placed on reinforcing the market function and demand side of the economy through stronger rights for private consumers and requirements for green public procurement. This will require significant advancements when it comes to documentation, information and digitalisation. Based on the same purpose, the fundamental European regulatory framework for waste, industrial pollution and chemical management will also be revised and streamlined.

New act on sustainable products and value chains

Norway’s strategy for a circular economy is closely aligned with the European work on more sustainable production and consumption of products and supports this development in Europe. New legislation in line with government policy is essential to promoting a circular economy and the green transition in Norway. There is no Norwegian legislation that is equivalent to the strengthened product framework currently under development in the EU, and to which we contribute through the EEA cooperation. The proposal for a comprehensive new act on sustainable products and value chains aims to promote sustainable products and value chains for products that contribute to a resource-efficient and sustainable production and consumption pattern, and contribute to the transition to a more circular economy in Norway. The Government will submit the act to the Storting for consideration in 2024.

Legislation that facilitates the effective implementation of strengthened requirements for sustainability of products is one of the most important actions the Government can take to promote the circular economy and green transition in Norway. It is also important to ensure a level playing field for Norwegian industry in the EU/EEA single market.

Ecodesign

An important measure to ensure more circular and sustainable products is the new Ecodesign for Sustainable Products Regulation (ESPR).The regulation implies a significant change to the markets for products in the EU single market by placing requirements on the sustainability characteristics of all kinds of products, with very few exceptions, including food and pharmaceuticals. It will establish a new minimum standard for products in Europe, and make products more adapted to a circular economy from the early stages of their life cycle. The purpose is to make sustainable products the norm in the EU/EEA and it will significantly raise sustainability standards throughout the single market. Ecodesign requirements also include information for consumers, improving their access to information on sustainable product choices, in an easily accessible and ideally digital format. These requirements will be specified through more detailed, underlying regulations. A large number of product-specific underlying regulations have also been announced once the Ecodesign Regulation has been adopted. Norway will monitor and participate in the drafting of underlying legislation for priority areas where Norway has important knowledge to share or interests to safeguard.

Box 3.2 Ecodesign/sustainability requirements under the new Ecodesign Regulation may be related to:

  • Durability
  • Reliability
  • Reusability
  • Upgradability
  • Repairability
  • Possibility of maintenance and refurbishment
  • The presence of substances of concern
  • Energy use and energy efficiency
  • Resource consumption and resource efficiency
  • Water use and water efficiency
  • Recycled content
  • Possibility of remanufacturing and recyclability
  • Possibility of the recovery of materials
  • Carbon and environmental footprint
  • Expected generation of waste

The seven priority value chains

Below is a brief overview of the status of regulations related to the seven key product value chains, along with the Government’s work in the respective areas. See Norway’s strategy for developing a green, circular economy for more information about the priority product value chains.

Batteries and vehicles

Batteries

The green transition, with extensive electrification of major sectors such as energy and transport, is expected to entail a massive increase in the demand for batteries. The new Batteries Regulation is the European Commission’s first major regulatory delivery under the Circular Economy Action Plan. This broad measure also sets the standard for regulation based on value chains in the other priority product areas under the EU’s Circular Economy Action Plan.

Norway has a well-developed collection system and a newly established advanced processing facility for discarded electric-car batteries, which could represent a competitive advantage. As the amount of batteries from, among other things, second-hand electric cars increases over the next few years, Norway may play an important role in further developing appropriate reuse and recycling systems. For more information about the Government’s efforts in the area of batteries, see Norway’s battery strategy.

Vehicles

Vehicle production is one of the most resource-intensive industries. As the automotive sector moves towards zero-emission technology, and vehicles are equipped with more integrated electronics, demand for copper and other critical raw materials will increase. In July 2023, the European Commission presented a proposal for a new regulation that sets new circular requirements for the design of new vehicles, repairs and handling of discarded vehicles. It proposes requirements relating to the content of recycled materials in new vehicles and that countries introduce incentives for the reuse of second-hand car parts for repairs and maintenance. The proposal also aims to bring about better control of used vehicle exports.

In Norway, the requirements and the need for new knowledge, new systems and new working methods will particularly affect vehicle suppliers, vehicle workshops and facilities that process discarded vehicles. There will also be a general need to develop technology and knowledge in order to ensure reuse and high-quality recycling. The Government will develop incentives that promote increased reuse of second-hand car parts.

Electrical and electronic equipment

Electronics and electronic equipment constitute one of the fastest growing waste streams in the EU. With less than 40 per cent of the electronic waste in the EU being recycled, valuable raw materials are being lost. In Norway, the growth in waste has stabilised and a high proportion of waste electrical and electronic equipment (WEEE) is recycled, but we also have a high consumption of electronics. Electrical and electronic equipment is regulated in several regulations, including the Restriction of Hazardous Substances Directive (RoHS), the Directive on Electrical and Electronic Waste (WEEE Directive) and in legislation underlying the current Ecodesign Directive. The WEEE Directive is currently under evaluation in the EU.

Packaging

Various efforts are being made to recycle more packaging, including through new requirements for sorting and recycling in the national Waste Regulations adopted in spring 2022. Proposals for new requirements for separate sorting and collection of glass and metal, cardboard and paper and textiles from municipal waste have been submitted for consultation. The Norwegian Environment Agency has also proposed changes to the current extended producer responsibility scheme for packaging and packaging waste, with a view to making the scheme more robust, efficient and supportive of a circular economy.

In November 2022, the European Commission presented a proposal for new regulation on packaging and packaging waste (Packaging and Packaging Waste Regulation). The purpose of the regulation is to reduce the climate and environmental impact from all parts of the packaging value chain, and to harmonise the regulatory framework for packaging in the EU/EEA countries. The suggested amendments will help reduce unnecessary use of packaging, lower packaging waste and increase reuse and recycling. The EU reached an agreement on a new packaging regulation in March 2024, but the text must still be formally approved by the Council and the European Parliament.

Textiles

To reduce the negative impact of textiles on the environment and climate, it is important to introduce requirements that promote sustainable textiles throughout the life cycle, from the extraction of raw materials and production, and all the way through to the waste stage. In autumn 2022, the Government appointed a working group on extended producer responsibility for textiles that included key stakeholders from the textile and waste industries, as well as environmental organisations. The working group prepared a report with recommendations and, in October 2023, submitted its recommendation on how an extended producer responsibility scheme for textiles in Norway should be designed. The working group also considered how digital product passports can be designed to contain useful information for stakeholders throughout the value chain, from consumers when purchasing a product, to how products can be repaired, reused and recycled. The Norwegian Environment Agency has been assigned the task of preparing a regulatory proposal for such a new extended producer responsibility scheme. In July 2023, the European Commission also proposed requirements for extended producer responsibility for textiles in its proposal for a revised Waste Framework Directive. An assessment is being made of whether it may be possible to implement such a scheme in Norway faster than in the EU, and whether any elements of extended producer responsibility can be introduced sooner. Textile waste is also covered by the amendments to the Waste Regulations on sorting, which have been submitted for consultation.

The EU Strategy for Sustainable and Circular Textiles was presented in March 2022. The purpose of the strategy is to reduce the environmental impact of textiles throughout the value chain, and the European Commission states in the strategy that textiles will be regulated under several pieces of legislation. Of particular importance are the upcoming ecodesign requirements for textiles through the underlying regulations to the Ecodesign Regulation. As part of the Ecodesign Regulation, an EU ban on the destruction of unsold textiles and footwear has been adopted, applying to large and, eventually, medium-sized actors.

Plastics

The production and consumption of plastics contributes to significant greenhouse gas (GHG) emissions and other forms of pollution. An important set of rules regulating plastics is the Single-Use Plastics Directive. Plastic packaging is currently regulated by the Packaging and Packaging Waste Directive. A number of requirements relating to plastic packaging have been proposed in the new Packaging and Packaging Waste Regulation. Agreement has been reached on the restriction on intentionally added microplastics under the chemical regulation REACH. The European Commission has also proposed a new regulation to prevent the unintentional release of plastic pellets.

Norway will also introduce rules on extended producer responsibility for certain plastic products, requiring producers to cover municipalities’ costs for cleaning up these products in public spaces. Norway will also introduce extended producer responsibility for equipment containing plastics used in fisheries, aquaculture and recreational fishing.

Box 3.3 A new global agreement to stop plastic pollution

Since 2014, Norway has worked for a stronger global commitment to reducing plastic pollution, and consensus was reached at the UN Environment Assembly in March 2022 to develop an international legally binding instrument to end plastic pollution. Norway has taken a leading role in the negotiation process to establish an ambitious agreement with global commitments, including as chair of the High Ambition Coalition to End Plastic Pollution, together with Rwanda. The coalition is working to enable a transition to a circular economy for plastics through measures that promote sustainable plastic products, remove plastic polymers and chemicals that pose long-term effects to health and the environment and those that can prevent recycling, as well as measures that stimulate increased collection, reuse, sorting and recycling of plastic waste.

Food, water and nutrients

Food production and the use of bioresources play a crucial role in the transition to a more circular and sustainable economy. Bioresources can be better utilised in a circular system, and they can reduce the use of, or replace, resources with a higher climate and environmental footprint.

Through the EEA Agreement, comprehensive and detailed legislation has been established in the area of food, that among other things covers food, animals and inputs. This regulatory framework has a whole-chain approach and is very much designed for a linear rather than a circular economy. To increase circular resource utilisation in the food value chain, regulations must be designed to ensure that residual raw materials are utilised at the highest possible level of the value pyramid, while safeguarding considerations for safe food and feed, good animal and plant health, and the climate and the environment. Efforts to remove unnecessary barriers to increased use of resources require an active influence in the EU’s regulatory processes supported by documentation demonstrating that food safety has been ensured.

A key element of the European Green Deal is the Farm to Fork Strategy (2020), which describes how the EU will work to make food systems fair, healthy and environmentally-friendly, and ensure that everyone has access to sufficient, safe, nutritious and sustainable food. It covers the entire food system, including production, transport, distribution, marketing and consumption. Several of the initiatives in the strategy have been followed up with specific proposals, while some of the initiatives have been delayed and will not be presented during the current commission period. This includes a common framework for sustainable food systems.

Through the EEA Agreement, Norway’s food and feed regulations are common with those of the EU and are intended to ensure safe feed and food. At the same time, we see a need to better adapt the regulations to support circular reuse and the utilisation of new resources. For example, it is not currently permitted to use fish sludge to cultivate bristleworms and insects destined for feed, due to insufficient documentation that sludge is safe to use. Several ministries and the Norwegian Food Safety Authority are collaborating on this matter, which requires effective processes for engaging with the EU. The Government increased its allocation to the Norwegian Food Safety Authority by NOK 5 million in 2023–2025 in order to better adapt existing regulations to more circular reuse and utilisation of new resources. The total investment of NOK 15 million over three years will strengthen the work on documentation and regulations that facilitate the utilisation of residual raw materials and by-products for feed from land and sea.

Box 3.4 Stronger efforts to prevent food waste

Food waste is a major global environmental problem. Massive quantities of edible food still end up as waste in Norway, with 84.7 kg thrown away per capita every year (2020 figures). The primary instrument for reducing food waste in Norway today is the Norwegian Voluntary Agreement on Reduction of Food Waste from 2017, which sets the target of halving food waste in Norway by 2030. In January 2024, the Food Waste Committee submitted its recommendations to the Government. The committee assessed the overall use of measures and policy instruments to achieve the goal of halving food waste by 2030, and considered how a food waste act could form part of the overall policy instrument framework. The Government is in the process of assessing the committee’s recommendations and is preparing a further process for efforts to prevent edible food from being thrown away.

In July 2023, the European Commission presented a proposal for legally binding food waste reduction targets as part of the revised Waste Framework Directive, one of the measures under the Farm to Fork Strategy. They propose that EU member states reduce the amount of food waste in the food manufacturing sector by 10 per cent, with an overall reduction of 30 per cent per capita for groceries, restaurants and food services and households by 2030.

Even with efforts to avoid wasting edible food, there will still be nutrition-containing waste from the production and consumption of food that cannot be utilised at a higher level. It is desirable to return this as fertiliser for agriculture or for other purposes. The fertilizer regulations are currently under revision, where part of the goal is to ensure increased utilisation of nutrients, while also reducing pollution and the spread of unwanted substances.

Construction and building materials

The building, construction and real estate industry is Norway’s largest mainland industry, and accounts for substantial resource consumption. The industry is also the largest single source of waste in Norway.

Less demolition, extending the lifetime of buildings and the reuse of materials could in many cases contribute to lower resource consumption and emissions. The Govern­ment has introduced amendments to the Planning and Building Act that make it easier to use the existing building stock for new purposes, as long as health, safety and the environment are safeguarded. The new rules apply from 1 January 2023. The Government will now assess whether the planning regulations under the Planning and Building Act sufficiently facilitate the reuse of buildings. In 2022, the Government also introduced a requirement in the Technical Regulations (TEK) that new buildings must be designed in a way that enables them to be disassembled, and that materials must be mapped for reuse in the event of changes to existing buildings. Furthermore, the Government amended the regulations on documentation of building materials in 2022, making it easier to sell used building material for reuse in other constructions. The change enables developers and actors that sell used building materials to obtain the necessary documentation for use of the product. This has made the regulations more flexible, opening up opportunities for growth in the market for used building materials.

The EU has reached agreement in the negotiations on a revised Construction Products Regulation. The regulation aims to ensure safe building materials on the market, reduce national trade barriers, resolve problems related to the publication of standards and reduce the overall climate and environmental footprint of construction products. It is closely linked to the Ecodesign Regulation.

Box 3.5 OMTRE seeks to make it easier to choose used wood

OMTRE manages the Green Platform project SirkTRE, which has sub-projects in the field of mapping standing structures and processing recycled wood, as well as research and development projects in the field of building systems, digitalisation, regulation and market development for better circular resource utilisation. The project is working with several partners to accelerate the construction industry’s transition to the circular economy.

Regulations that enable consumers to make good environmental choices

Consumers can play a key role in the transition to a circular economy by changing their general material consumption, choosing products wisely and by reusing and repairing more products. By demanding sustainable products, consumers are drivers for more resource-efficient production and consumption patterns. This demands products on the market that meet stringent environmental requirements and that relevant, quality-assured information is readily available, for example in the form of official eco-labels.

To address this, the European Commission presented three proposals in 2022/2023 for regulations aimed at helping consumers make more sustainable choices that contribute to a more circular economy:

The directive on empowering consumers for the green transition was adopted on 20 February 2024. Among its goals is to ensure better information about durability and repair options. It will also provide consumers with better protection against commercial practices that discourage sustainable consumption, such as the use of misleading environmental claims and labels in marketing (‘greenwashing’) and premature failure of goods. The proposed Green Claims Directive, which is still under consideration, will complement the directive on empowering consumers for the green transition by setting out more detailed and specific requirements. Green claims must be substantiated and verified by a third party. The proposal for a Right to Repair Directive is about giving consumers new rights to have products repaired, rather than replaced, including outside the warranty claim period. The purpose is increased repair and reuse. Input on this proposal was submitted to the EU in the form of a joint EFTA comment. Agreement has been reached on the proposal, but it has not yet been formally adopted.

Product information, which may be made available in digital product passports, could be useful to consumers not only at the time of purchase but also later in a product’s service life. The Consumer Council of Norway will also continue its work on consumer information that facilitates good environmental choices. The Consumer Council will disseminate ideas and methods for promoting circular practices through a contact point for consumer power in the green transition.

3.2 Sustainable finance

EU taxonomy

The transition to a circular economy, waste prevention and recycling are key aspects of the EU taxonomy for sustainable activities. The purpose of the Taxonomy regulation is to facilitate financial markets to channel capital to sustainable activities and projects. It serves as a tool for identifying which investments align with long-term climate and environmental goals, while also providing companies with better opportunities for transition.

The European Commission sets out further taxonomy criteria for when a specific activity can be defined as sustainable. In June 2023, the Commission adopted a new set of criteria for activities that will contribute to the transition to a circular economy. The criteria include activities in the production of plastic packaging and electrical products, water supply, sewage and waste treatment, construction, IT services and communication and other services, such as the repair and sale of used materials/goods, etc. The criteria were incorporated into the EEA Agreement and implemented in Norwegian law as regulations in February 2024.

The Government is working to safeguard Norwegian interests in the EU’s efforts to further develop the taxonomy, to ensure that Norwegian companies that are transitioning towards sustainability, or that want to expand operations that are already sustainable, can use the system as a tool.

Corporate sustainability reporting

Access to relevant information is important for financial market participants to be able to correctly assess and price return prospects and risks. If financial institutions and investors are to channel capital to the companies that are best equipped to handle climate and sustainability risk, access to good information is crucial. It could also give the reporting companies a better opportunity to highlight their sustainability efforts. A new Corporate Sustainability Reporting Directive (CSRD) was adopted in the EU in December 2022. The directive aims to facilitate the transition to a sustainable economy by ensuring that sufficient public information is available about the sustainability risks to which companies are exposed, and the company’s impact on people and the environment. The information reported should be comparable, reliable and easy for users to find.

In May 2023, the Securities Law Committee submitted its report on the implementation of the CSRD into Norwegian law. The report has been submitted for consultation. In March 2024, the Ministry of Finance will present a proposal to the Storting, enabling the new rules to be introduced in Norway at the same pace as in the EU. The CSRD will be supplemented by European reporting standards to be adopted in delegated acts by the European Commission. The Commission adopted a first set of standards in July 2023, including a standard on resource use and circular economy.

To enable comparable reporting across companies, sectors and countries, companies should, as far as possible, report according to the same standards.

3.3 Chemical regulations

The goals of the chemicals policy is to eliminate the use and releases of environmental toxins and other substances of concern. To achieve a circular economy, it is crucial that the most hazardous substances are removed from the material cycles. The same requirements must apply to products produced from primary and secondary raw materials, which will contribute to safer materials recycling. It will also provide greater potential for developing new material flows and products based on secondary raw materials, thereby increasing the degree of recycling. We need more knowledge about hazardous substances in the material flows throughout the life cycle of products.

Norway shares a common chemicals regulatory framework with the EU and is a driving force in efforts to phase out the most hazardous chemicals, both in Europe and globally. Under the EU Chemical Strategy for Sustainability, the chemicals legislation will be simplified and strengthened. A framework and criteria will be developed for the design and redesign of safe and sustainable chemicals and materials, which will also contribute to the circular economy. The Ecodesign Regulation and the Batteries Regulation both refer to these forthcoming criteria.

3.4 Waste legislation

Norwegian waste policy is constantly evolved. The main goals are overall reduction in the waste amounts, increased preparation for reuse and increased recycling. Many pieces of legislation regulate waste in EU/EEA countries. The Waste Framework Directive and the Regulation on shipments of waste are two key pieces of waste legislation currently under revision. Agreement has been reached in the EU on the latter. At the same time, new specific requirements for waste prevention and waste management are proposed in the new value chain regulations.

Box 3.6 Box 3.6 Offshore wind and recycling

Norway has opened two areas for offshore wind production: Sørlige Nordsjø II (fixed-bottom technology) and Utsira Nord (floating technology). The location of the production in the opened areas will be allocated through competitive bidding. For Sørlige Nordsjø II, a pre-qualification of the actors will first be conducted to determine whether they can participate in the price competition for the right to apply for a production licence in the area. One of the pre-qualification requirements is that applicants must have a plan that helps ensure that the project has good waste management, with particular emphasis on recycling.

As a minimum, the plan must contain a description of planned measures related to:

  1. Waste management in the project
  2. The potential for recycling, including estimates of the possible share of recyclable materials for turbines, turbine blades, turbine towers, foundations, cables and substations
  3. Reuse of larger elements of the energy system
  4. Material and chemical use in the project
  5. Pollution, including microplastics

For Utsira Nord, the right to apply for an offshore wind production licence in the three different project areas will be awarded according to a set of qualitative competition criteria. The three applicants that collectively receive the highest overall score on the competition criteria may each be awarded their own project area for which they can apply for a licence. One of the qualitative criteria in the competition is the plan for waste management, recycling and reuse of larger elements of the plant. The content of the various elements of this competition criteria is the same as for Sørlige Nordsjø II (given above).

Waste Framework Directive

The Waste Framework Directive includes targets of 55 per cent recycling of municipal by 2025, 60 per cent by 2030 and 65 per cent by 2035. Going forward, the Government will propose additional policy instruments and measures to increase the proportion of municipal waste that is prepared for reuse or sent to recycling, through follow-up of the Norwegian Environment Agency’s report with analysis of measures.12 Norwegian municipalities play an important role in waste management and in implementing the measures required to achieve the recycling targets. The role of municipalities and counties in the circular economy is otherwise described in Norway’s strategy for developing a green, circular economy from 2021.

In July 2023, the European Commission proposed a new revision of the Waste Framework Directive. The main proposed changes are discussed in the chapters relating to the value chains for textiles and food and nutrients. A more extensive revision of the Framework Directive has also been announced in 2024, in which the European Commission has said it will look at measures to promote increased re-use, including quantitative reuse targets. They will also assess the possibility of introducing other waste prevention measures, including waste reduction targets.

Hazardous waste

The Waste Framework Directive also stipulates that countries must have sufficient treatment capacity for hazardous waste for disposal. Hazardous waste contains substances that are harmful to health and the environment that must be removed from circulation and treated in a suitable manner. The capacity to handle hazardous waste is also important in a circular economy, as there will be a number of waste types that cannot be recycled. Industries that are important in the green transition may also require capacity to handle hazardous waste.

Regulations for shipments of waste

The European Parliament and the Council have reached political agreement on a new regulation on shipments of waste (Waste Shipment Regulation), which is expected to be formally adopted in spring 2024. The new regulation will to a greater extent ensure that the EU does not export its waste challenges to third countries, make it easier to transport waste for recycling and reuse in the EU and improve monitoring of illegal shipments of waste. It will contribute to a greater use of waste to obtain secondary raw materials, thereby replacing primary raw materials and contributing to a more circular economy in the single market. The new regulation also lays down further restrictions on export and import of waste for final treatment, which underlines the need for national solutions, particularly when it comes to the management of hazardous waste, and the necessary infrastructure. There will also be stricter controls on exports of waste to countries outside the EU, including an export ban on plastic waste to non-OECD countries. The EU regulations were finalised in December 2023.

Regulations on building and construction waste

Technical Regulations (TEK) require that all construction waste must be delivered to an approved waste station, reuse facility or direct material recycling. The regulations also set requirements for waste sorting. In 2022, the Government increased the requirement for waste sorting at construction sites from 60 to 70 per cent by weight.

Better management of clean surplus materials

Clean surplus materials are a resource that should be reused wherever possible. Reuse of surplus materials reduces the need to extract new construction raw materials and minimises land use associated with permanent landfills. It can also reduce the need for transport and GHG emissions. More sustainable management of surplus materials requires cooperation between public and private actors, often across municipal borders. A number of measures have been proposed that can contribute to this end in a report by a cross-sectoral working group (in Norwegian only). The report is being followed up through various processes involving several ministries.

Box 3.7 Bærum Ressursbank

The resource bank Bærum Ressursbank is a project that works to maximise the recovery and utilisation of surplus materials (stone, soil, concrete, asphalt, etc.) from construction and infrastructure projects in the region. The resource bank works according to the resource pyramid, emphasising maximum reuse and minimal disposal. Development projects such as the Ringeriksbanen and Fornebubanen railways, the E16 and E18 roads, a new water supply system to Oslo and new waterworks in Asker and Bærum, are generating a large surplus of materials. Bærum Ressursbank aims to make the surplus materials a resource that can be reused rather than being treated as waste. Reuse of rock and stone should become a natural first choice for builders and contractors. The market system for climate-wise resource management of surplus materials is one of several projects under the auspices of Bærum Ressursbank. The resource bank is financed by Bærum Municipality and the Norwegian Environment Agency through the Klimasats fund. It also receives innovation and research funding from the Regional Research Fund Viken and Enova.

3.5 Revised Industrial Emissions Directive

The EU has reached an agreement in trilogue negotiations on a revised Industrial Emissions Directive which includes requirements aimed at reducing industrial pollution, cutting GHG emissions, increasing energy efficiency and promoting a circular economy. The regulatory framework includes, among other things, binding requirements for resource utilization and obligations for industry, meaning the companies covered by the directive to, by 2030, develop plans on how to contribute to the transition toward a sustainable, clean, circular, resource-efficient and climate-neutral economy by 2050.

3.6 Critical raw materials

Good access to metals and minerals is a prerequisite for the green transition and the transition from fossil to renewable energy, and Norwegian districts play a key role in facilitating extraction of such metals and minerals in Norway. Access to metals and minerals is of pivotal importance in many industrial sectors, including sectors of strategic and national security importance. There is a shortage of several metals and minerals. The demand for many raw materials necessary for the green transition is expected to increase faster than the development of new mines and new capacity for the production and recycling of critical raw materials.

The EU Critical Raw Materials Act (CRMA) aims to strengthen the value chains for critical raw materials for EU countries, including by promoting efficiency and circularity throughout the value chain. The EU seeks to reduce supply risks and strengthen research and development, innovation and expertise. The CRMA specifies what the EU considers to be critical and strategic raw materials. The identified raw materials are linked to economic importance, security of supply and anticipated increased demand in the years ahead in connection with the green transition. Improved design, increased reuse and recycling can help improve access to these materials.

The CRMA contains EU-wide goals for 2030: to approach or reach extraction capacity necessary to produce at least 10 per cent, and process at least 40 per cent of the EU annual consumption of strategic raw materials, and for 25 per cent of strategic raw materials used in new products to be recycled. In addition, that no single third country accounts for more than 65 per cent of the EU’s annual consumption of a strategic raw material. The countries must prepare national programmes for the circularity of critical raw materials. The Act proposes measures for the collection and recycling of strategic raw materials from waste at the national level, in order to achieve increased circularity and sustainability. Another key aspect is accelerating government processes for extraction, processing and material recycling projects for critical raw materials.

3.7 Second-hand Trade Act

The current second-hand trade legislation (the Second-hand Trade Act and the Second-hand Trade Regulations) have had adverse effects on the development of new circular business models. The Act originates from the Trade Act, which was repealed in 1999 and applied to all trade in goods. When the Trade Act was repealed, special rules were introduced for trade in second-hand and discarded goods. The purpose of the Act is to prevent the sale of stolen and illegally received items and to assist police efforts to trace such items. The regulations stipulate that trade in second-hand goods requires permission from the police. The regulations also lay down detailed requirements as to how such commercial activities are to be conducted. Among other things, the goods received must be registered in a detailed record system and stored for two weeks before they can be destroyed, processed or resold. For items intended for industrial destruction and/or recycling, as well as motor vehicles, there are exceptions to the duty to record and the storage obligation. The legislation is a tool for preventing the receiving and sale of stolen property. It grants the police the authority to ensure that those subject to the legislation comply with the requirements it sets out, and gives the right of inspection of the second-hand trade records and the premises where the second-hand items are stored.

The Government’s official assessment of the legislation has shown that the regulations have weaknesses and are applied inconsistently. The requirements for obtaining a licence to trade are somewhat unclear, the licences are granted with different durations, and there is no simple overview of who possesses a licence. The requirements are considered burdensome for traders and make it significantly more difficult to run a business that deals in second-hand rather than new goods. Amendments to the regulations for second-hand trade could help stimulate growth in the sale of used/second-hand goods/materials between businesses and from businesses to end users in major industries such as retail, heavy industry and building and construction.

In the summer of 2023, the Ministry of Trade, Industry and Fisheries submitted a consultation paper outlining two options: a proposal to repeal all of the second-hand trade legislation (the Second-hand Trade Act and the Second-hand Trade Regulations) and an alternative comprising a new act with a narrower scope and less burdensome requirements for retailers who trade in second-hand goods. The proposal to repeal the Second-hand Trade Act and the Second-hand Trade Regulations was considered the best of the two options.

Action points

  • Present a new act on sustainable products and value chains to the Storting in spring 2024
  • Introduce stricter regulations for sustainable and non-toxic products and value chains to contribute to a green circular economy and the same framework conditions for Norwegian business and industry as in the rest of Europe
  • Strengthen the extended producer responsibility scheme for packaging to ensure that it is robust, efficient and adapted to a circular economy
  • Introduce new extended producer responsibility schemes for certain single-use plastic products and for equipment containing plastics used by fisheries and in aquaculture and recreational fishing
  • Introduce a new extended producer responsibility scheme for textiles
  • Consider introducing new requirements for separate sorting and collection of glass and metal packaging, cardboard and paper, and textiles from municipal waste with effect from 2025
  • Propose new policy instruments to increase the proportion of municipal waste that is prepared for reuse or sent to recycling
  • Use Norway’s leading role to put in place an ambitious international agreement that stops plastic pollution and promotes a circular value chain for plastics
  • Strengthen efforts to halve food waste by 2030, in line with the Food Waste Committee’s recommendations
  • Remove barriers to increased use of resources in the bio-industries through targeted efforts in the EU’s regulatory processes and the preparation of necessary documentation to ensure safe food and prevent harm to the environment
  • Review policy instruments for better reuse of phosphorus
  • Present revised fertilizer regulations
  • Assess whether there is a need to amend the planning section of the Planning and Building Act to make it simpler to renovate and simpler to prevent the demolition of existing buildings
  • Develop a cross-sectoral guide on the current rules for handling of materials in dialogue with the construction industry
  • Assess the need for changes and harmonisation of regulations relating to the handling of materials
  • Facilitate or consider establishing marketplaces for construction raw materials based on surplus materials from mineral extraction, transport projects and building projects
  • Stipulate requirements for minimising the proportion of surplus materials in processes where this is feasible, based on the best available technology and best available business models and operating and disposal methods
  • Require that project developers draw up plans for annual reductions of surplus materials, chemical use and other environmental impacts
  • Consider measures to increase the collection and recycling of waste with a high potential for recycling of critical and strategic raw materials
  • Implement regulations that enable consumers to make good environmental choices, by helping consumers find good and reliable information about products’ environmental characteristics, preventing ‘greenwashing’ and premature failure of goods, and making goods easier to repair
  • Make it easier to trade in second-hand goods