The Nordic countries adopt diverse but aligned policy instruments to enhance energy efficiency and mitigate climate change, with notable similarities and differences across the building and industry sectors.
In the building sector, Nordic countries use various informational instruments to promote energy efficiency. For instance, Denmark’s SparEnergi.dk, Finland’s Motiva Oy, and Norway’s Enova offer advisory services, Additionally, Denmark, Finland, Sweden, and Iceland also provide guidance through specialised centres. Regarding regulatory tools, all Nordic countries have adopted regulations setting minimum energy efficiency requirements for new and renovated buildings through national building codes. Energy labelling systems for buildings are common in Denmark, Finland, Norway, and Sweden. Iceland has regulations to support heating costs, while the Faroe Islands set requirements for heat pump systems and installer approvals. Financial instruments, such as subsidies and grants, support activities, such as heat pump installations, energy renovations, and transitions to renewable energy. Denmark offers funds, such as the heat pump fund and energy renovation fund, while Iceland and Finland provide subsidies for energy-efficient equipment and heating system conversions. In Norway, Enova offers financial aid for energy efficiency measures, including energy mapping and performance improvement in commercial building. Tax incentives in Denmark, Finland, and Sweden encourage energy saving renovations, including heat pump installations and window replacements. Green financing options, including low-interest loans and green bonds, are available in most Nordic countries. Voluntary initiatives include energy efficiency standards, such as passive house criteria in Norway and the low-energy Building Class 2020 in Denmark. Environmental certifications, including BREEAM, LEED, and the Nordic Swan Ecolabel, are widely used across Denmark, Finland, Iceland, Norway, and Sweden to certify buildings exceeding energy efficiency requirements. Innovation programmes like Sweden's technology procurement clusters and Norway’s FutureBuilt aim to promote sustainable-building practices. Collaborative platforms in Denmark and Finland help reduce energy consumption in buildings.
In the industry sector, as informational instruments, Denmark’s SparEnergi.dk, Norway's Enova, and Finland’s Motiva Oy offer guides and consulting services on energy efficiency. Iceland’s Energy Centre supports businesses with renewable energy adoption, while Sweden's Energy Agency provides sector-specific energy saving advice. Regarding regulatory tools, all Nordic countries prioritise energy audits to identify efficiency opportunities, with mandatory requirements in Denmark, Finland, Norway, and Sweden. In Iceland, the National Energy Fund Law outlines the National Energy Authority's role in advising the government, conducting energy research, and planning long-term energy supply. Financial instruments are widely adopted across the Nordic countries, with Denmark offering grants, such as the business pool scheme, while Enova support programmes in Norway fund energy-efficient technology. Finland’s energy investment aid and Business Finland provide loans and grants, and Iceland’s National Energy Fund supports renewable energy projects. Sweden’s Climate Leap programme funds emissions reduction efforts. Voluntary initiatives, such as ISO 50001 implementation, are widely encouraged in most Nordic countries to improve energy management practices across industries. Sweden has roadmaps for fossil-free competitiveness, which focus on policy follow-up, national strategies, public procurement climate requirements, regional action plans, and support for green industrial projects. Finland supports voluntary energy audits for SMEs and energy efficiency agreements, while Norway’s Green Industrial Initiative promotes the emission reduction in industries. In the Faroe Islands, a network of businesses focuses on green transition and competitive sustainability, aligning with the United Nations (UN) Sustainable Development Goals (SDGs). In countries such as Norway, Sweden, and Denmark, companies set voluntary energy efficiency and/or climate targets.
While this chapter presents a comprehensive overview, it represents a snapshot and only includes a selection of relevant information. We observed a discrepancy in the level of detail available, with the building sector having more extensive data compared to the industry sector, which is likely due to the industry's dynamic nature and complex interconnections.
The following sections provide country overviews of the policy instruments for Denmark (2.1), the Faroe Islands (2.2), Finland (2.3), Iceland (2.4), Norway (2.5), and Sweden (2.6). Each country overview is organised into two categories: building sector and industry sector.