Norway beats back lawsuit seeking to curb Arctic oil drilling
The government acted lawfully in awarding exploration licenses in the Arctic Barents Sea to companies such as Statoil ASA and Chevron Corp. in 2016, Oslo District Court said in a ruling on Thursday. The risk of environmental damage from the government鈥檚 decision is 鈥渓imited and remedial measures are sufficient,鈥 the court said, also ordering the environmental groups to pay 580,000 kroner ($72,000) in court costs.
The result 鈥渨as as expected, in the sense that our view has been that there have been good processes with regards to the 23rd licensing round, in line with the legislation,鈥 Norwegian Oil and Energy Minister Terje Soviknes said in an interview Thursday.
Greenpeace and Nature and Youth, a Norwegian environmental group, had sued the government, claiming it breached the constitution and acted contrary to the Nordic country鈥檚 commitment to fight climate change under the Paris Agreement. The group will decide later whether to appeal, Truls Gulowsen, head of Greenpeace in Norway, said in a message.
鈥淪ome issues that the environmental organizations have raised fall outside what was tried by the court,鈥 according to the ruling. 鈥淲hether Norway is doing enough for the environment and climate, and if it was sensible to open fields so far north and east鈥 are questions 鈥渂etter assessed through political processes,鈥 the court said.
The lawsuit was the first of its kind in Norway and is part of a growing global trend of legal challenges against governments and companies for falling short on tackling climate change. Analysts said the suit was a long-shot, but that it could be a stepping stone to further legal challenges, which Greenpeace cited as one objective.
The courtroom battle unfolded against a backdrop of growing skepticism toward the oil industry and, especially, its Arctic exploration.聽The industry鈥檚 future took center stage in the campaign for Norway鈥檚 parliamentary election last year, as voters increasingly question whether it makes moral or even financial sense to keep exploring for more fossil fuels.聽
The country鈥檚 $1-trillion wealth fund, built from its offshore riches, last year proposed dumping oil and gas stocks to limit risks.
Yet at the same time, Norway has pushed for more exploration in the Barents Sea, which is thought to hold half of the country鈥檚 undiscovered resources. The region is seen as key to limit a new drop in oil production in the middle of the next decade after it already fell by half since a 2000 peak.