Norway is committed to achieving its emission reduction target under the Paris Agreement. Today, the Government is presenting a white paper describing its action plan for transformation of Norwegian society as a whole by 2030. The plan shows how Norway will achieve its climate target and at the same time create green growth.
The main emphasis of the climate action plan is on emissions that are not included in the Emissions Trading System, or non-ETS emissions. These include emissions from transport, waste, agriculture and buildings, and some emissions from industrial production and the oil and gas industry. It also deals with the EU Emissions Trading System, which applies to the bulk of emissions from industrial production and the oil and gas industry. In addition, the action plan discusses CO2 removals and emissions in the land-use, land-use change and forestry (LULUCF) sector.
The main policy instruments in the climate action plan are taxation of greenhouse gas emissions, regulatory measures, climate-related requirements in public procurement processes, information on climate-friendly options, financial support for the development of new technology, and initiatives to promote research and innovation. The Government intends to make greater use of climate-related requirements in public procurement processes. Requirements for zero-emission solutions will be introduced for passenger cars and small vans in 2022, and for local buses from 2025. Criteria relating to low- or zero-emission solutions will also be introduced for ferry services and high-speed passenger vessel services.
The white paper also announces a gradual increase in the carbon tax rate from its current level of about NOK 590 to NOK 2000 per tonne CO2 equivalents in 2030. This will progressively increase the cost of emitting CO2 and give stronger incentives to reduce emissions. The Government’s policy is not to increase the overall level of taxation. Any tax increase will therefore be offset by reducing other taxes correspondingly.