Norway will require state-owned firms to set science-based emissions reduction targets, according to a new Norwegian Government white paper presented to the supreme legislature.

The paper, “A greener and more active state ownership – The state’s direct ownership of companies,” develops the government’s policies and strengthens the state’s expectations for state-owned companies. Norway owns 70 companies managed across 12 different ministries, with the value of the state’s direct ownership estimated at NOK 1.2 trillion (USD$113 million).

The report set out climate, nature and ecosystem-related expectations for the companies, including setting targets and implementing measures to reduce greenhouse gas emissions (GHG) both in the short and long term, in line with the Paris agreement. Targets are expected to be science-based, when possible, and to report on target achievement.

The announcement follows recently set expectations from Norway’s pension fund for all high emitting companies in its $1.2 trillion portfolio to set 2050 net zero targets “as a matter of urgency,” and for all portfolio companies to do so by 2040 at the latest.