|Policy status:||In Force|
|Policy Type:||Economic Instruments>Fiscal/financial incentives>Taxes, Economic Instruments>Market-based instruments>GHG emissions trading, Voluntary Approaches>Public Voluntary Schemes|
|Policy Target:||Industry, Energy Sector>Electricity Generation>Fossil fuels (Coal, gas, oil), Carbon Capture Storage|
|Agency:||Directorate of Customs and Excise|
Norway introduced the CO2 taxes in 1991. The CO2 tax on mineral products applies to mainland activities and is levied on the use of mineral oil (including auto diesel), petrol, natural gas and LPG. It also applied to coke and coal up until January 2003.
A specific CO2 tax applies to emissions from the petroleum activitities on the continental shelf. The tax is paid per litre of oil and natural gas liquids and per standard cubic metre of gas (Sm3) burnt off or emitted directly to air on platforms, installations or facilities. It is classified as a deductible operating cost associated with petroleum activities, which reduces the ordinary tax and special tax actually paid by oil companies.
Installations included in the EU ETS are exempt from the CO2 tax on mineral oil and are subject to a reduced CO2 tax rate on natural gas and LPG. The general tax rates in 2013 are 0.61 NOK per litre of mineral oil, 0.46 NOK per Sm3 of natural gas and 0.68 NPK per kg of LPG. A higher tax rate applies to domestic aviation not covered by the EU ETS (0.71 NOK per litre in 2013).
Domestic aviation covered by the EU ETS is from 2012 subject to a reduced tax rate (0.43 NOK per litre). As of 2013, fishing and catching in inshore waters is subject to a reduced CO2 tax on mineral oil (0,13 NOK per litre). This sector has previously been exempt from the CO2 tax.
From 2013, the CO2 tax on petroleum activities was increased from 0.49 to 0.96 NOK per litre/sm3 of mineral oil/natural gas.
Last modified: Wed, 30 Oct 2013 14:47:16 CET