Norway’s plans to raise carbon tax draw oil industry ire – The US will follow this exhample

“We must make sure that it pays to cut greenhouse gas emissions,”

Norway Environment Minister Sveinung Rotevatn - Energy News Beat

Energy News Beat Publishers Note: We need to watch how Norway handles this, as this is what is politically correct in the new administration. 

OSLO (Reuters) – Norway plans to more than triple its national tax on carbon dioxide (CO2) emissions by 2030 to help it reach its climate goals, the government said on Friday, drawing criticism from the country’s powerful oil lobby.

The cost of emissions will be raised to 2,000 Norwegian crowns ($237) per tonne by 2030 from 590 crowns for most industries at present, Environment Minister Sveinung Rotevatn said when presenting the cabinet’s “Climate plan 2021-30”.

“We must make sure that it pays to cut greenhouse gas emissions,” he told a news conference.

Norway, western Europe’s largest oil and gas producer, aims to cut its greenhouse gas emissions by 50-55% by 2030 compared with 1990 levels.

By mid-2021 the government will also present a white paper on the long-term development of its energy industries, including oil and gas, Prime Minister Erna Solberg told a news conference.

“The government will show how the oil and gas industry will cut, by 2030, its emissions by 50%,” Solberg said.

Big emitters, such as oil producers and aviation, already pay around 800 crowns annually in pollution costs.

That includes the charge they face because of non-EU Norway’s adherence to the European Union’s Emissions Trading System (ETS), which uses trade to establish the cost of carbon emissions.

The combined cost of the national tax and of ETS payments will be capped at 2,000 crowns, under the latest plans.

The government also promised to lower other taxes and levies for those affected, but industry said the change could decrease competitiveness.

“This will be expensive, increase the cost of the Norwegian continental shelf and could weaken Norwegian competitiveness,” said Anniken Hauglie, the head of the Norwegian Oil and Gas Associaion (NOG), representing companies such as Equinor.

Espen Barth Eide, energy spokesman for Norway’s main opposition Labour Party told broacaster NRK the government should have set a higher target for emission cuts, but it would be constructive in its talks with the minority government.

($1 = 8.4363 Norwegian crowns)

Editing by Terje Solsvik and Barbara Lewis

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience in implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor in this space. Stuart has led the “Total Corporate Digital Integration” platform at Sandstone and works with Sandstone clients to help integrate all aspects of modern digital business. He is also the Executive Publisher of, the best source for 24/7 energy news coverage and is the Co-Host of the energy news video and Podcast Energy News Beat. Stuart is on Board Member of ASN Productions, DI Communities Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.