Nordic lessons on effective energy transition and decarbonizing hard-to-abate sectors

Did you know the Nordics already source more than 78% of their electricity from renewables, making the benchmark in energy transition—compared to just 42% in the United States, 71% across Europe, and just 29% in Asia. While many countries are still crawling toward an energy transition, Denmark, Sweden, Norway, and Finland are quietly showing us how the Nordic energy transition is done.

If you want to decarbonize the toughest of industries—steel, cement, chemicals, and heavy transport—you need more than basic energy efficiency. These sectors account for over 30% of global energy use and emissions. No country can successfully navigate its energy transition without tackling them.

But for that, you need a smart decarbonization strategy, and the Nordics have one. It’s time for the rest of the world to follow suit. That’s why we’re gathering industrial leaders, innovators, and changemakers in Copenhagen for the Schneider Electric Innovation Summit 2025.

Three lessons from the Nordic energy transition

1. Early investment in renewables

The Nordics leapt ahead of the curve. Denmark generates over 50% of its electricity from wind. Last year, 98% of electricity generated in Norway came from low-carbon sources. In 2023, renewables accounted for around 66% of Sweden’s and over 50% of Finland’s gross final energy consumption, with solid biofuels, hydro, and wind making up the bulk of the mix

Through bold investment in renewables, their approach not only cuts emissions but also strengthens energy independence and fosters healthier, more resilient communities in the process.

The enabler of this transition is technology: smart grid technologies, advanced meters, power monitoring, and building management systems that optimize and accelerate renewables integration. Essentially, it’s smart engineering and a healthy dose of Nordic determination.

2. Modern grids, digitalization, and cross-border cooperation

The Nordic power market (Nord Pool) is a masterclass in collaboration, enabling Nordic and Baltic countries to share surplus renewable energy and respond collectively to supply shocks. It’s a system designed for resilience, flexibility, and efficiency.

Digital technologies, such as smart meters and remote monitoring systems, help to manage energy more efficiently through predictive maintenance, outage management, and integration of distributed energy resources. A powerful example is Lippulaiva in Finland, where Schneider Electric worked with Citycon, the leading owner and developer of city centers in the Nordics, to implement a smart, energy-efficient urban center.

Thanks to a virtual power plant solution using solar energy, energy storage, and demand flexibility, the project cut annual CO₂ emissions by 335 tCO₂ and is on track to achieve its €3 million investment payback within five years. This illustrates how digitalization not only increases transparency and efficiency but also strengthens resilience and reduces operations-related emissions.

3. Strong policy frameworks and carbon pricing

Nordic governments have implemented some of the world’s most ambitious climate policies, including high carbon taxes and binding net-zero targets. Sweden is aiming for net-zero by 2045, and for Denmark, a 70% emissions cut by 2030 from its 1990 baseline.

To achieve its targets, Sweden, for example, has one of the highest carbon taxes globally, currently SEK 1,510 (€134) per tonne of CO₂ in 2025, significantly incentivising low-carbon technologies and discouraging fossil fuel use. Denmark has also legislated a new corporate CO2 levy, rising DKK 1,125 (€150) per ton by 2030. These policies are backed by long-term political commitment and regional cooperation, including the Nordic Declaration on Carbon Neutrality signed in 2019. 

This aligns with findings from Schneider Electric’s 2023 C-Level Pulse Check, where regulatory pressure and cost-saving opportunities were identified as the top two drivers for corporate decarbonization efforts. Such legislative measures not only reinforce national climate goals but also reflect broader global trends influencing executive decision-making.

Public-private partnerships have further accelerated smart infrastructure, microgrids, and sustainable transportation solutions. For example, in 2022, the Icelandic government launched a collaborative project between government authorities and the business sector, known as The Business Climate Roadmaps. The goal was to contribute to the development of a comprehensive and realistic plan to achieve Iceland’s climate targets through dialogue between business and the public sector. The initiative has formalized collaboration between government and industry across 11 sectors, and generated over 300 proposals for emission reduction measures. Its outcomes are intended to inform Iceland’s forthcoming Climate Action Plan, providing a structured way to bring business sector input into national climate policy.

Decarbonizing hard-to-abate Sectors: The Nordic way

Proven to be 3-5 times more efficient than other energy sources, electricity is a powerful driver for decarbonization. This is central to Schneider’s Electricity 4.0 vision, which combines electrification and digitalization at scale. This maximizes energy efficiency, creating a smarter and more sustainable energy ecosystem.

Digitalization and innovative design

Steelmakers are deploying green hydrogen and electric arc furnaces, while chemical plants are cutting energy waste through advanced monitoring systems. Outside of heavy industry, smart offices and sustainable buildings are also setting a benchmark, integrating sensors and automation to optimize energy use and indoor air quality.

Another example from the Nordic energy transition is the world’s first pilot plant for climate-friendly concrete, recently opened in Sandnes, Norway. The project, led by Cemonite, uses mining waste to produce a sustainable alternative to cement, addressing two major sources of industrial emissions. The plant is equipped with Schneider Electric’s EcoStruxure Plant Advisor, a digital monitoring system that combines sensors and AI analytics, providing live energy usage updates every few minutes.

This allows for faster operational adjustments, helping operators cut energy and water use while boosting productivity by up to 5%, and enabling continuous optimization and flexible scaling.  If deployed at scale, this technology has the potential to significantly reduce emissions from cement production and mining and demonstrates how digital innovation is accelerating the green transition in even the hardest-to-abate sectors. The result is a future-ready backbone that cuts installation time, saves space, and keeps critical operations running, no matter what.

Innovation Summit Copenhagen: Accelerating Impact

I’ve focused on the Nordics, but Innovation Summit Copenhagen is more than a local showcase, it’s a catalyst for global transformation. Leaders from every sector will spotlight the latest in electrification, automation, and digitalization.

For the event, I’ll be leading a strategy talk, “Decoding Decarbonization: Transitioning Against Challenges in Hard-to-Abate Industries,” alongside Nicola Rossi, head of innovation at Enel Group. We’ll explore how electrification, innovative design, and integration strategies can reduce emissions and costs while boosting efficiency.

We hope to see you there to discuss the Nordic energy transition firsthand—not just from leading voices inside the hall, but from material results across the city.

Visit our Innovation Summit events page to learn more about the event.