California – hit hard, but full of opportunities

By Kristian Bye, Head of our San Francisco and Silicon Valley office

For the US in general, and California in particular, 2020 was an extremely challenging year. The pandemic hit the country's most populous state hard, while wildfires and unrest surrounding the presidential election and racial tensions added to the turmoil. For those of us living and working in Silicon Valley, this meant strict restrictions and a rapid shift to entirely new ways of working.

But from the ashes of natural disasters, disease and division, new opportunities also emerge. This was part of the backdrop to the historic virtual delegation from Norway to California on 27 and 28 April. Over the two days, senior leaders from the two coastal economies met to discuss a sustainable future and how innovation and industrial collaboration can address our greatest challenges in the years ahead.

The delegation is historic in several ways. It is the first virtual delegation to California from another country, with HRH Crown Prince Haakon as a guest and actively leading several of the discussions. The use of technology to bring the parties together from opposite sides of the Atlantic is also new. Working with Norwegian company Myreze, we have developed a virtual studio where participants from California and Norway can meet as if they were in the same room, with the majestic Golden Gate Bridge and San Francisco providing a three-dimensional backdrop.

Watch the digital delegation to California.

The project was initiated by Consul General Jo Sletbak at the Norwegian Consulate in San Francisco and delivered through close collaboration between the Ministry of Foreign Affairs, us and representatives from several ministries, clusters and businesses. This is exactly how Team Norway should work.

We were responsible for the programme on the second day of the delegation's visit and used the opportunity to position Norwegian companies and technology in the largest and most environmentally focused state in the US.

The day began with a conversation between Nancy Pelosi, Speaker of the House of Representatives, HRH Crown Prince Haakon and Minister of Foreign Affairs Ine Marie Eriksen Søreide. They emphasised the importance of international cooperation in achieving the Sustainable Development Goals.

This set the scene nicely for the first panel, which discussed the transition to a zero-emission vehicle fleet and environmentally friendly mobility on land and at sea. In 2020, California adopted a strategy requiring all new passenger cars to be emission-free from 2035 – and, as Will Ferrell did in the recent General Motors advert, they are looking to Norway to learn and find solutions.

Renewable energy is crucial to achieving the climate targets, not least the ambition of zero-emission mobility. Offshore wind was therefore next on the agenda, with companies such as Aker Offshore Wind and Equinor joining talks with California's political leaders.

Finally, representatives from leading financial institutions seeking to support the green transition came together. Little Silicon Valley accounts for 22 per cent of all venture capital investment in the US and 44 per cent of all investment in start-ups. The region is known for its ability to help new and innovative solutions grow. Investors are now placing increasing emphasis on ESG targets – Environmental, Social and Governance – covering environmental and social issues and corporate governance. Collaboration between public and private funders on major infrastructure projects is also crucial to providing predictability and reducing risk.

For Norwegian businesses, delegations like this can provide valuable insights, contacts and future contracts. Over the past 20 years, our Silicon Valley office has built a unique network and a reputation that gives us access to key decision-makers at the highest level. We drew on this to organise the delegation, and we can do so again for businesses that need it.