Green Building Sector Profile[1] - Oslo, Norway

August 2013

Produced by the Canadian Trade Commissioner Service

Sector Overview

The Norwegian building industry is projected to increase over the coming years, with economic

indicators showing continued growth through 2013. Current building stock in Norway comprises

2.5 million domestic and 1.5 million commercial properties. Domestic properties comprise

50% detached homes, 20% semi-detached and 20% apartments.

Investment in mainland Norway (excluding offshore oil and gas), housing prices, population,

disposable income and consumer purchasing power are all increasing. Coupled with a stable

employment outlook, projections for the continued growth of the building sector are strong:

Residential new builds are projected to increase 32% in 2011 to 28,000 new homes, with

further increases of 7% in 2012 and 2013, bringing the number of new homes started

to 32,000 in 2013.

For the commercial property sector, an 8% rise in building is projected, bringing new

commercial property to 5.15 million m² in 2012 and a further increase to 5.5 million m² new

space in 2013.

The renovations sector is also projected to enjoy growth with the commercial renovation

market increasing 1% in 2011, 3% in 2012 and 4% in 2013. For domestic properties, market

increases are projected at 3.5%, 3% and 2.5% for the same period. This represents the

largest spending per capita in European terms.

The total building market is expected to increase from NOK 235 billion in 2011 to NOK 260 billion

in 2013. The sector employs around 210,000 in construction, while a further 80,000 are involved in

the manufacture of building products, retail and related services.

Coupled with this general increase, new regulations will offer new opportunities for the green building

sector. Unusually high energy costs over the last winters have also increased the interest in

integrating alternative energy forms, and media attention on low energy and energy positive building

are also changing market conditions.

The introduction of BREEAM as the green building standard for industry and the founding of the

Norwegian Green Building Council in late 2010 have increased focus on the green building sector. The

first buildings are now being assessed to these standards, and a contract signed for the construction

of Norway’s first energy positive commercial property.

Market and Sector

Focus on green building is relatively new. Norway has typically enjoyed relatively low electricity

prices and the majority of homes have been converted to electric heating. Approximately 80% of

homes were heated by electricity in 2001, with breakdown of heating sources as follows:

36.4 TWh electricity

6.7 TWh wood / bioenergy

2.8 TWh oil

0.25 TWh district heating

0.08 TWh natural gas

There has now been substantial investment in district heating, and one ENOVA programs are

completed, district heating will account for 6 TWh of heating. Water based heating systems are

installed in around 40% of new buildings, 25% of these are residential dwellings.

As of January 2011 only 70 passive houses were built in Norway, but a report published by SINTEF

suggests that several thousand are being planned. It is expected that the number of passive houses

in Norway will surpass the 1,500 built in Sweden in the coming years.

Building regulations have been proposed in the TEK ‘15 report, recently published by Rambøll

consultants. The TEK ’15 requirements are likely to be more target based than prescriptive, as a

means to secure more innovative solutions in the Norwegian building sector towards 2015.

The previous TEK ’10 introduced requirements in increased sealing and insulation values in buildings

with less than 30m² of heated living area. For commercial buildings energy recovery is increased

to 80%. Energy standards for new buildings are set as follows:

homes - 120kWh/m² heated area per year

apartment buildings - 115kWh/m² heated area per year

kindergartens - 140kWh/m² heated area per year

office buildings - 150kWh/m² heated area per year

schools - 120kWh/m² heated area per year

university buildings - 160kWh/m² heated area per year

hospitals - 300kWh/m² heated area per year

care homes - 215kWh/m² heated area per year

hotels - 220kWh/m² heated area per year

sports facilities - 170kWh/m² heated area per year

businesses - 210kWh/m² heated area per year

cultural buildings - 165kWh/m² heated area per year

light industry - 175kWh/m² heated area per year

There are also specific requirements for heating systems, insulation and glazed areas.

Drivers for green building include the following:

Changes in regulation in Norway. An “energy certificate” must be supplied for any

residence sold or rented after 1 July 2010. This is a self-assessment which applies an energy

grading to the property reflecting the energy efficiency of the building. The system s also

applied to commercial properties.

Support programs. ENOVA, the state energy efficiency program, offers support for passive

house assessments, building of passive houses and low energy houses and for some

renovations. ENOVA support programs focus primarily on commercial buildings.

Energy costs. Spikes in winter energy prices have drawn attention to alternative forms of

energy. As the majority of homes are heated with electricity, air-to-air heat pumps have

been the most prevalent heating source, with an estimated 480,000 now installed in

Norwegian homes. The market for ventilation systems in Norway, including heat pumps,

for 2011 was NOK 8.11 billion, with this figure projected to rise toNOK 9.16 billion in 2013.

Lighthouse projects. FutureBuilt is one of the programs promoting highly visible projects to

bring attention to green building. Added to the work of very influential ENGOs, this is

increasing media attention and general.

Knowledge. Increasing awareness and knowledge amongst builders and architects, coupled

with increased knowledge by home owners and businesses are seen to be a key driver.

Building product can be imported to Norway without duties, but will be subject to value added tax at

a rate of 25%. While ISO standards and CE marking are prevalent, Norway has a voluntary

certification system administered through SINTEF, which documents that the product is fit for use.

This process has a cost attached, and while it is not compulsory, the approval does aid market

entry. A link giving further information is provided at the end of this document.

Due to high costs in Norway, import of products from the Baltics and from countries such as Poland

has been increasing. There is existing import of products from Canada, and Canadian companies have

been at the forefront of certification of green buildings in Norway.

Sub-Sector Identification

Energy efficiency

Focus of some funding support through ENOVA.

Ventilation and heat recovery

There are Scandinavian suppliers to this market, but success has been seen in other European

markets for Canadian products. Growing sector with potential for Canadian suppliers.

Green roof

Recent interest in green roof solutions. There are local companies focusing on the supply of plants,

but opportunities for system suppliers.

Renewable energy

Geothermal, solar and air-to-air heat pumps are all increasing in popularity for new builds. Small scale

wind does not yet have focus in the market.

Case study

Golder Associates have established themselves as the leader in green building certification, with the

first BREEAM assessor in Norway and first green building certified in Norway. The list of BREEAM

buildings certified by Golder Associatesis growing, with the Company partnering in key projects in

Norway.

Canadian Government Contacts

Embassy of Canada, Olso, Norway

Email: john.winterbourne@international.gc.ca

Internet: www.tradecommissioner.gc.ca

Foreign Affairs, Trade and Development Canada

125 Sussex Dr.

Ottawa, ON K1A 0G2

Internet: http://www.tradecommissioner.gc.ca

Useful Internet Sites

Bellona

Concrete Innovation Centre

Ecobox

ENOVA

Futurebuilt

Green Building Alliance

Norwegian Architects Association

Norwegian Building Technology Portal

Norwegian Green Building Council (NGBC)

Research Centre on Zero Emission Building

SINTEF certification

Zero

[1] The Government of Canada has prepared this report based on primary and secondary sources of

information. Readers should take note that the Government of Canada does not guarantee the

accuracy of any of the information contained in this report, nor does it necessarily endorse the

organizations listed herein. Readers should independently verify the accuracy and reliability of the

information.