NEWS

Norway to Revise its Compensation Scheme

21/03/2024

In light of the increased carbon prices under EU ETS this year, the Norwegian government is set to revise its 10-year-old compensation scheme for power-intensive companies associated with the ETS. The revised scheme, covering the period of 2024-2030 and adding $47mn to its existing budget, will have higher compensation rates as well as stricter rules regarding the usage of these funds by companies.

Companies will be required to allocate at least 40pc of funds towards climate or energy-related measures, as well as to refund any amount that was not used for its intended purpose. They will also need to submit climate and investment plans approved by the Norwegian Environment Agency, which they must implement by 2034.

The revised scheme will be proposed by the Environment Agency and approval from the European Free Trade Association’s surveillance authority (ESA) should be obtained before it is put into force.