Norway: Climate issue and oil production dictate terms of new coalition govt

by   |  VIEW 252

Norway: Climate issue and oil production dictate terms of new coalition govt

Recent elections in Norway saw the centre-left opposition parties win the mandate. This win meant the end of the eight-year rule of the incumbent, the Conservative Party. Following the election results, prime minister Erna Solberg will also step down from her post.

Jonas Gahr Stoere, who heads the Labour Party is expected to form the next government and be the prime minister of the country. The next government, led by Gahr Stoere, will, however, be a coalition government and talks have started regarding the formation of a coalition.

The main subjects of discussion before a coalition is agreed upon are oil production and the climate crisis. The Labour Party is hoping to form a coalition government with the Socialist Left Party and the Centre Party. As of now, Norway accounts for about 40% of the world’s oil exports.

The new government is expected to address the people’s concerns on the subject of climate crisis while also trying to veer the country away from the oil exploration industry. The latter would also have implications for the country’s addressing to mitigate the climate crisis.

Norway: What do the results of the 2021 election mean for the country?

Speaking with Reuters, Norwegian analysis firm CICERO’s analyst Baard Lahn said, “The likely compromise has to do with restricting exploration, and the less explored and matured areas are easier to stop exploration in.

Also, the industry has indicated they are less interested in those areas at the moment. That's a possible outcome, but exactly what that will look like, there are many possibilities”. Other market experts have also pointed out that the Labour Party doing well on its own has removed the possibility of a coalition being formed with the inclusion of more stringent political rivals such as the Green Party and the Red Party.

In order to form the government, the coalition parties need to have 85 seats in the assembly that has 169 members. As it stands, Labour Party – with its 48 seats – joining forces with the Socialist Left (13) and the Centre Party (28) would mean the new coalition government will have well over the majority mark needed. The new government is expected to form in Norway, in October.