Policy status:Superseded
Date Effective:2008
Date Ended:2012
Policy Type:Economic Instruments>Market-based instruments>GHG emissions trading
Policy Target:Framework/ Multi-sectoral Policy
Agency:Ministry of the Environment, Section for Climate and Energy

On 26 October 2007 the Joint Committee of the European Economic Area, comprising Iceland, Lichtenstein and Norway, agreed to incorporate the Emissions Trading Directive 2003/87/EC and a number of implementing provisions into the Agreement on the European Economic Area (EEA). This agreement allows the above three countries to participate in the EU internal market. The decision entered into force 29 December 2007 following parliamentary approval from the EEA states. The Norwegian National Allocation Plan (NAP) sets out the framework for the allocation to installations obliged to surrender emission allowances under the 2008-12 EU emissions trading scheme, which Norway entered as of 1 January 2008. The Norwegian emission trading scheme (ETS) will cover 35 - 40% of the greenhouse gas emissions from Norwegian sources, and hence become a vital part of the Norwegian efforts to ensure compliance with the Kyoto Protocol. The petroleum sector, excluded under Norways previous domestic ETS, will be included in the scheme. Pulp and paper facilities are also included as of 2008, representing 20 installations, as are emissions from energy combustion in production of fishmeal and oil (less than 8 installations). Other types of facilities included are gas-fired plants, petrochemical installations, cement plants, and installations processing lime, leca and mineral wool. As of November 2007, 120 facilities were to be included in the scheme. The principles for allocation will give incentives for emission reductions, and enable cost-effectiveness across different sectors. About half of the allowances will be allocated free of charge to existing installations (excluding petroleum sector), and the other half of the total quantity of allowances could be sold at market conditions. The allocation free of charge for the trading period 2008 - 2012 will be calculated based on the installations historical emissions in 1998 - 2001. Installations will get 100% free allowances corresponding to the average 1998-2001 emissions for industry process. For energy related activities the figure is 87%. The production of nitric acid (N2O) will be allocated allowances free of charge for existing landbased installations, for 50% of the installations average N2O emissions from industrial processes based on 1998-2001 emissions. Moreover, a reserve will be set aside for new gas-fired power plants based on technology for carbon capture and storage (CCS) and for highly efficient heat and power plants. The governments position is that no business shall rely upon allocation free of charge post 2012. The NAP is currently under review, following its assessment by the EFTA Surveillance Authority in July 2008.

This record is superseded by:EU ETS 2013-2020 , National Allocation Plan for the Emissions Trading Scheme 2013 -2020

Last modified: Wed, 12 Nov 2014 15:28:12 CET