The environmental governance system around the implementation of sustainable aviation fuels in Norway : a case study on e-fuels and carbon capture and utilization value chain

Abstract

Over the last years Sustainable Aviation Fuels (SAFs) have gained attention as a solution to lower CO2 emissions from aviation, a sector difficult to electrify that contributes to a large extent to global CO2 emissions, and is expected to grow in the future years. A new European consortium based in Norway, Norsk e-Fuel, presented its project on sustainable fuels. The project aims to industrialize a hydrogen based e-fuel, generated from CO2 and water, using Carbon Capture and Utilization (CCU), electrolysis, and Norwegian renewable energy. CCU, as well as many new technological solutions, comes with challenges and uncertainties that hinder their deployment and governance, constantly pushing for institutional changes. This thesis uses Norsk e-Fuel as a case study, and Institutional economics theory to analyze the environmental governance system framework around the implementation of CCU and e-fuels in Norway. Additionally, it looks to identify the uncertainties and challenges for their development and how these and actors from the governance structure push the dynamics of institutional change and influence their implementation. Results showed Norway has a robust environmental governance structure that, together with an international framework, has a lot of influence on the implementation of e-fuels and the CCU value chain. The research identified several challenges and uncertainties for their development and implementation. These challenges have been actively discussed by the main actors involved. The discussions have shown a dynamic action within the national and international governance structure to have clearer policy instruments to implement or refute CCU and e-fuels. Today, a new regulatory framework from the EU that contains relevant instruments for implementing CCU and e-fuels is about to be adopted. However, the results identified some limitations in Norway to adopt new EU regulations, like slow processes and apprehensiveness from the institutions setting the rules to implement new regulations. Regardless of these limitations, institutional change is constantly happening within the actors in the governance structure, and the findings show that the influence they have to implement new solutions has a lot of weight.