Policy status:Ended
Date Effective:1999
Policy Type:Economic Instruments>Market-based instruments
Policy Target:
Agency:Minsitry of the Environment
Description:The Norwegian Parliament voted down a government proposal to expand Norways CO 2 tax system to reduce greenhouse gas emissions, opting instead for introducing a national system of tradable emissions quotas for industry. The government appointed a committee representing government, industry, and NGOs to elaborate a trading scheme based on the guidelines from the Parliament. The committee recommended that Norway replace its existing CO 2 tax scheme with a system of tradable GHG emissions quotas covering some 90% of the countrys total 1997 emissions. Only emissions that cannot - with reasonable certainty and at acceptable cost - be assigned to a specific polluter - such as methane and nitrous oxide emissions from agriculture - would be excluded. Participation would become mandatory from 2008, the first year of the Kyoto Protocol five-year "budget period". The majority in the committee recommended the government sell the quotas in the market. A minority recommended a combined allocation system, with some quotas being sold and some allocated free of charge based on grand-fathering. The report of the committee has been subject to a public hearing. The government plans to present a proposal to the Parliament in 2001.

Last modified: Wed, 29 Aug 2012 14:24:02 CEST