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Norway to Establish CO2 Compensation Plan for Industry

Tomm W. Christiansen/Bloomberg
The city center skyline stands illuminated at night, seen from the Ekeberg hill, in Oslo, Norway.

Norway will establish a program to compensate industry for carbon-dioxide emissions to prevent businesses from moving production abroad.

The program will be running by July next year and last through 2020, the government said in a statement. The plan will be closely linked to European Union guidelines for compensation and encompass 15 industry areas, including aluminum production and wood processing, the government said.

“We have to ensure that industry can develop in an environmentally friendly direction while ensuring strict environmental demands don’t force a migration of emissions and carbon leakage,” Environment Minister Baard Vegar Solhjell said in the statement.

The plan will only compensate long-term power contracts that have carbon costs, which limits subsidies to agreements made in 2005 or after, the government said.

To contact the reporter on this story: Stephen Treloar in Oslo at streloar1@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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