2. Nordic objectives, targets, and strategies for energy efficiency

2.1 Denmark

2.1.1 Cross-sectoral

• Fulfil the Energy Efficiency Directive (EED) requirements that include the energy saving obligations, energy efficiency targets, and national contribution. Denmark is required to achieve cumulative energy savings of 107.2 TWh over the period 2021–2030, while its indicative national contribution to the EU target amounts to 159.7 TWh of the final energy consumption.
• Reduce GHG emissions by 70% in 2030 compared to the 1990 level and be fossil fuel free by 2050.
• Expand the use of renewable energy sources extensivel.

2.1.2 Building sector

• Focus on improving the energy efficiency of private homes, businesses, and public buildings.
• Phase out oil and gas use in space heating by 2035.
• Achieve 100% green gas by 2030.
• Prohibit new district heat projects that use fossil fuels

  International Energy Agency (IEA), Denmark 2023: Energy Policy Review. OECD, 2023. doi: 10.1787/755105d6-en.

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• Have life-cycle-based targets for carbon dioxide (CO₂) emissions from new buildings.

• Implement the ‘National strategy for sustainable buildings’, the government’s sectoral action plan, to support a comprehensive sustainable transformation of the construction sector, including initiatives for climate-friendly construction, high-quality sustainable buildings, holistic renovation assessments to minimize demolition, and digitally supported construction.
• Execute the ‘Danish Climate Agreement for Energy and Industry 2020’, which also focuses on the green transition of house heating and energy efficiency improvements in buildings.
• Execute a ‘Long-Term Renovation Strategy’, as mandated by the Energy Performance of Buildings Directive (EPBD), to support the renovation of the national building stock.

2.1.3 Industry sector

• Achieve a green transition of industry, targeting complete decarbonization by 2050.

• Implement the Green research, development, and demonstration (RD&D) Strategy for investments in energy efficiency by pinpointing the key research priorities aligned with energy and climate agreements, including industrial electrification, renewable integration, and more green gas such as biogas and synthetic carbon-neutral fuels.
• Execute the ‘Danish Climate Agreement for Energy and Industry 2020’, which also focuses on the green transition and energy efficiency improvement in the industry sector.

2.2 The Faroe Islands

2.2.1 Cross-sectoral

• Achieve 100% green electricity by 2030. 
• Reduce emissions by at least 45% by 2030 compared to 2010 levels.

2.2.2 Building sector

• Reduce energy use and transition 50% of the private houses from heating by oil to renewable energy heating by 2030.

• Incentivise the purchase of heat pumps and use of geothermal heating.
• Support the implementation of the ‘Proposal for an Energy and Climate Policy 2021-2030’, which suggests measures for the transition to renewable energy heating and the reduction of GHG emissions, including a ban on the oil heating in new houses and the introduction of building energy labelling.

2.2.3 Industry sector

• Reduce the oil consumption in industrial operations, especially in sectors such as construction, fishing and shipping.

• Support the implementation of  the ‘Climate policy of the Faroe Islands 2020–2030’, to promote the transition to renewable energy sources, including wind and solar, as well as developing energy storage infrastructure. 
• Support the implementation of the ‘Proposal for an Energy and Climate Policy 2021-2030’, which suggests several measures, including electrification of industrial production and machinery.

2.3 Finland

2.3.1 Cross-sectoral

• Fulfil the EED requirements that include energy saving obligations, energy efficiency targets, and national contribution. Finland is required to achieve cumulative energy savings of 187.5 TWh over the period 2021–2030, and its indicative national contribution to the EU target amounts to 239.6 TWh of the final energy consumption.
• Achieve energy efficiency as part of sustainable energy use measures.
• Achieve at least a 51% renewable energy share of the final energy consumption.
• Achieve carbon neutrality by 2035, with reduced GHG emissions in the effort sharing sectors by 50% in 2030, compared to the 2005 levels.

2.3.2 Building sector

• Reduce the heating energy use of the building stock from 71 TWh/year in 2020 to 56 TWh/year in 2030, 45 TWh/year in 2040, and 36 TWh/year by 2050.

• Implement ‘Carbon Neutral Finland 2035 strategy – national climate and energy strategy’, where improving energy efficiency is acknowledged as a key measure for the decarbonisation of the building stock.
• Enact ‘Long-term renovation strategy’, as mandated by EPBD, to support the renovation of the national building stock.
• Execute the ‘Ministry of Environment's Strategy 2035’, which recognizes energy efficiency and reasonable energy use as well as smart technology as integral parts of planning, implementation, and use.
• Implement the ‘Low-carbon roadmap’, which emphasizes a significant potential for reducing the energy consumption and emissions from the existing building stock.

2.3.3 Industry sector

• Renew the industry sector to make Finland the world’s most competitive carbon-neutral industrial environment by 2030.

• Implement the ‘Low-carbon roadmaps’, identifying technological solutions to promote decarbonisation as well as the necessary investments, skills, and training, in more than 10 industry sectors, including the energy, chemical, technological, and textile industries.
• Enforce the ‘Renewable Industry Strategy’, aiming to make Finland the world’s most competitive operating environment for industry by 2030, while achieving carbon neutrality. Recognize increasing industrial investments as crucial, with energy efficiency as a key pathway to carbon neutrality.
• Increase electrification and use of waste heat in the industry sector.

2.4 Iceland

2.4.1 Cross-sectoral

• Analyse the potential for increased energy efficiency in Iceland and provide support to selected measures.
• Replace fossil fuels with renewables.
• Achieve climate neutrality by 2040; about 35% emission decrease by 2030, compared to the 2005 levels; and take further actions to reach a 40–46% emission reduction by 2030.

2.4.2 Building sector

• Achieve a 7.5% reduction in emissions from energy use in buildings and a 43% total reduction in emissions from buildings by 2030.

• Implement the ‘Sustainable energy future – An energy policy to the year 2050’, which acknowledges that significant energy savings can be achieved with more efficient buildings, better insulation, and advanced energy systems as well as smart technology, which offers great potential for enhanced energy efficiency. An updated version was undergoing public consultation as of December 2024.
• Execute the ‘Roadmap towards a more sustainable construction by 2030’, a comprehensive guide for sustainable construction practices in Iceland. It outlines the goals and action plans to achieve environment-friendly constructions.

2.4.3 Industry sector

• Eliminate the dependence on fossil fuels and transition to renewable energy sources in all industrial areas.
• Diversify energy systems with wind and other renewables alongside hydropower and geothermal energy.

• Implement the ‘Icelandic Climate Action Plan’, which includes a series of mitigation measures for the industry sector to reduce emissions such as the electrification of fishmeal production plants, energy transitioning in manufacturing industries, and carbon capture from geothermal energy plants and heavy industries.
• Implement ‘Iceland’s Long-Term Low Emission Development Strategy’, which illustrates Iceland’s climate policies and measures towards climate neutrality and possible scenarios based on different technological solutions and systems.
• Enact the ‘Sustainable energy future – An energy policy to the year 2050’, which mentions that all energy resulting from other manufacturing activities must be utilised where technically and economically feasible, whether in energy production or industrial manufacturing (waste heat).

2.5 Norway

2.5.1 Cross-sectoral

• Achieve a 30% improvement in energy intensity by 2030, compared to 2015.
• Develop indicators for monitoring and improving energy efficiency and emissions.
• Develop tools to track energy use in various sectors and identify the potential energy efficiency measure.
• Achieve a ‘Low Emission Society’ by 2050.

2.5.2 Building sector

• Reduce electricity use in the building sector by 10 TWh/year by 2030, relative to the 2015 levels.
• Cut the GHG emissions by half by 2030, compared to the 1990 levels.

• Execute the 'Action plan for energy efficiency in all sectors of the Norwegian economy', with a focus on reducing energy use in buildings and strengthening existing measures through initiatives such as increased funding, regulatory reviews, and improvements to energy labelling.

2.5.3 Industry sector

• Establish new industries to support transitioning to a low-emission society.
• Phase out fossil fuels in industry.
• Implement extensive energy use analysis for large companies.

• Execute the ‘Energi21 – National strategy for research and development (R&D) of new energy tech’, Norway’s national strategy for research, development, and commercialisation of new climate-friendly energy technologies which has been advising on research and investment in the energy sector since 2008.
• Execute the ‘Action plan for energy efficiency in all sectors of the Norwegian economy’, proposing regulatory measures for energy efficiency in industry, such as mandatory energy audits and cost-use analysis for surplus heat in energy-intensive companies.

2.6 Sweden

2.6.1 Cross-sectoral

• Fulfil the EED requirements that include energy saving obligations, energy efficiency targets, and national contribution. Sweden is required to achieve cumulative energy savings of 237 TWh over the period 2021–2030, and its indicative national contribution to the EU target amounts to 350 TWh of the final energy consumption.
• Achieve 50% more efficient energy use by 2030, compared to the year 2005.
• Achieve net-zero GHG emissions latest by 2045 and 100% fossil-free electricity production by 2040.
• Review the energy efficiency target to promote more clearly the socio-economically efficient use of energy and the efficient use of the energy system contributing to the green transition.

2.6.2 Building sector

• Lower energy consumption of the building stock (kilowatt-hour (kWh)/square meter (m²)) than at the previous milestone by 2030, 2040 and 2050, as an indicative milestone for Swedish long-term renovation strategy.
• Increase the use of renewable energy sources in heating and cooling.
• Reach a climate-neutral value chain in the building sector: 50% reduced GHG emissions by 2030 (compared to 2015); 75% reduced GHG emissions by 2040 (compared to 2015); and net zero GHG emissions by 2045.

• Enact ‘long-term renovation strategy’, as mandated by EPBD, to support the renovation of the national building stock.
• Promote the ‘Sector Strategy for Resource-Efficient Construction’, which guides and sets ambitions for transitioning into more resource-efficient buildings, with a focus on measures for existing buildings where the potential for resource-efficient energy use is the greatest. This strategy was developed as part of an assignment for the Swedish Energy Agency.
• Encourage the ‘Strategy for Efficient Use of Energy and Power’, which aims to improve energy efficiency in buildings by optimizing electricity use and upgrading systems. It shows that using electricity more efficiently in buildings and industry is the fastest way to free up electricity, lower prices, and accelerate the transition to a fossil-free society.
• Follow the ‘Roadmaps for Fossil-Free Competitiveness – Construction and Civil Engineering Sector’, which has 26 challenges to politicians, authorities, and actors in the construction value chain. It suggests that sector strategies for energy efficiency will be developed with various industries and in consultation with relevant authorities.

2.6.3 Industry sector

• Unlock the energy efficiency potential in the industry sector, through energy- and resource-efficient production processes and products.
• Enhance the flexibility and robustness of the energy system through methods such as power management, demand response, and electrification,

• Encourage the ‘Strategy for Efficient Use of Energy and Power’, which aims to optimize energy use and efficiency in the industry sector. The strategy highlights energy efficiency as the fastest and most cost-effective way to reduce costs, enhance competitiveness, and support the transition to a fossil-free economy.

• The sector strategy of ‘flexible and robust energy system’, focuses on the energy sector and necessitates collaboration among all stakeholders, including producers and energy companies. It aims to foster open and innovative markets, ensure resource-efficient infrastructure use, promote flexibility throughout the energy system, and leverage the energy system to drive societal goals

  Swedish Energy Agency, “Sektorsstrategi för Flexibelt och robust energisystem [Sector Strategy for a Flexible and Robust Energy System],” 2021. [Online]. Available: https://www.energimyndigheten.se/energisystem-och-analys/samhallsbyggnad-och-energiplanering/vagledning-for-kommunal-energiplanering/energisystemet/flexibelt-och-robust-energisystem/

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• The sector strategy of ‘world-class production’ for a resource-efficient production and products within a circular context integrates energy efficiency in organizational and technological changes and encourages collaboration and digitalization for energy-intensive industries. The strategic areas here are resource-efficient industrial production and products.