Edgar Hertwich supports Norway to chart a path toward climate- and nature-neutral settlements

Summary
Steadily rising housing prices make it difficult for many working people to acquire a home. Household living costs have increased sharply. At the same time, Norway has never had more living space per capita (Oppøyen 2023). Norwegians are close to the top in Europe (EUROSTAT 2025). Increased housing construction can help satisfy demand, but causes large environmental costs. Environmental damage is caused by both material production and land use (International Resource Panel 2020). Norway will not be able to meet its obligations under the climate agreement or the nature agreement if the pattern of construction and use of housing and infrastructure continues.

Key findings are:

An increased utilization of existing housing and infrastructure will lead to a significant reduction in demand for living space.
Reusing buildings and building elements can reduce the need for the production of new materials.

People aged 80 and over are the fastest growing population group in the five major cities and will account for almost half of new demand for housing (Oust 2025). Only a tenth of the expected growth is among those under 60. If the older group moves earlier to smaller, adapted and adapted homes, then larger homes in established areas with good infrastructure can be freed up for families with children and those in the establishment phase.

An important reason for the high demand for living space in Norway is that housing is used to reduce taxes on wealth and income (Skatteutvalget 2022). There is no cap on the benefits of owning your own home, so that wealthy people receive higher tax benefits through their large residential properties than young people in the establishment phase. In addition, the benefit of living in your own home is not taxed, so there is no incentive for adults to move to a smaller unit after their children have moved out or their partner has passed away. Furthermore, document fees make it less attractive to move.

Reusing buildings and infrastructure, building elements and building materials can significantly reduce the need for virgin building materials and greenhouse gas emissions. Several demonstration projects and innovative solutions show the possibilities and diversity of resource-efficient construction with the reuse of structures and components. Such projects achieve today’s requirements in an attractive way. Reuse is not yet well-established today and a phase of facilitation and support for the establishment of market players and institutions is needed. The regulations should be updated so that new construction and the use of virgin materials and components are no longer favored. Public procurement, and requirements for reuse and climate accounting, can contribute to a sharp reduction in emissions and nature use related to the extraction of building materials.

The committee supports the tax committee’s proposal on taxation of housing and the circular economy committee’s recommendations regarding reuse in the construction sector (Expert Group for the Study of Instruments for Promoting Circular Activities 2025; Tax Committee 2022). Furthermore, the committee emphasizes the necessity of developing settlements to meet the needs of the aging population and at the same time free up larger housing for people in the establishment phase.

Read the summary here: Climate and nature-neutral housing

Video recording: https://www.youtube.com/watch?v=MsckPBW1k9s