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Arctic oil drilling under attack as Norway dragged to court

Mikael Holter November 13, 2017

OSLO (Bloomberg) -- A group of activists is trying to put a stop to Norway鈥檚 Arctic oil exploration and forcing the country to defend itself in the first court case of its kind.

Greenpeace and a Norwegian group, Nature and Youth, say Norway鈥檚 decision to award 10 Barents Sea exploration licenses in 2016 to Statoil, Lundin Petroleum, Chevron and others, breaches the country鈥檚 constitution. Drilling in these areas, which include new acreage bordering Russian waters, is incompatible with Norway鈥檚 commitment to fight climate change under the 2015 Paris Agreement and poses a threat to the environment, the plaintiffs say.

Norway鈥檚 government says the plaintiffs are misreading the law -- or at least its intention. Representatives from the two sides meet in court in Oslo on Tuesday.

The lawsuit is the first of its kind in Norway. But it marks part of a growing global trend of legal challenges brought against governments and companies for falling short on climate change. While experts doubt this particular suit will be successful, it could pave the way for more legal fights.

The battle will also force Norway to confront its split status as a nation trying to promote green policies while relying on fossil fuels for economic growth. Norway is trying to wean itself off oil and gas reliance, but it remains western Europe鈥檚 biggest producer.

鈥淲e will see more of this, in Norway and other countries,鈥 Catherine Banet, an associate professor at the University of Oslo, said in a phone interview. 鈥淚t鈥檚 definitely interesting -- it addresses an issue that affects many and goes straight to the dilemma of Norway鈥檚 petroleum and energy policy.鈥

First Test

The lawsuit is the first test of an article added in 2014 to Norway鈥檚 Constitution to ensure people have a right to a healthy, productive and diverse environment, and that natural resources are managed in a way that protects that right for future generations. The case is also the first to challenge oil and gas activity based on the Paris Agreement, according to Greenpeace.

Norway is pushing exploration in the Barents, which may hold half the country鈥檚 undiscovered oil and gas, to create a new production hub as North Sea output declines. The government says the plaintiffs鈥 interpretation of Article 112 is too broad, and rejects claims of procedural shortcomings. The responsibility for greenhouse-gas emissions lies with the consumer of fossil fuels, not their producer, the Attorney General said in court documents. What鈥檚 more, a ruling in favor of the plaintiffs might have consequences that go far beyond just the petroleum projects in Arctic waters, government lawyers said.

Ice Sculpture

The environmental groups on Monday unveiled an ice sculpture with Article 112 inscribed in it just a few yards from the entrance of the Oslo District Court, where it will remain during the trial.

鈥淚f we win, it will obviously have big consequences -- so big, some have said, that the case can鈥檛 be won,鈥 Truls Gulowsen, the head of Greenpeace in Norway, said to reporters outside the court house on Monday. 鈥淲e expect to win.鈥

Both Banet and Oystein Jensen, a senior research fellow at the Fridtjof Nansen Institute, said that would be difficult.

鈥淚t鈥檚 important regardless,鈥 Jensen said. 鈥淭he climate problem can鈥檛 be solved in the courts anyway. It requires a political solution.鈥

While drilling opponents ended up with limited gains in this year鈥檚 Norwegian election, the campaign showed voters are increasingly questioning whether it makes sense to look for more oil, especially in sensitive Arctic areas. An August poll showed 44% of Norwegian people, among the planet鈥檚 richest thanks to oil, would be willing to leave resources in the ground if it helps cut emissions.

Meanwhile, adding production in the Barents Sea faces other hurdles with the area鈥檚 first oil platform, Eni SpA鈥檚 Goliat, under scrutiny on both its finances and safety.

Proceedings in the Oslo District Court are scheduled to run from Nov. 14 to Nov. 22. While a court spokesman said it鈥檚 too early to say when a ruling can be expected, a Greenpeace spokeswoman said it would probably not be until early next year. The case鈥檚 docket number is 16-166674TVI-OTIR/06.

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