CO2 Tax

Norway introduced the CO2 taxes in 1991.  The CO2 tax on mineral products applies to mainland activities and is levied on the use of mineral oil (including auto diesel), petrol,  natural gas and LPG. It also applied to coke and coal up until January 2003.

A specific CO2 tax applies to emissions from the petroleum activitities on the continental shelf. The tax is paid per litre of oil and natural gas liquids and per standard cubic metre of gas (Sm3) burnt off or emitted directly to air on platforms, installations or facilities. It is classified as a deductible operating cost associated with petroleum activities, which reduces the ordinary tax and special tax actually paid by oil companies.

Installations included in the  EU ETS are  exempt from the CO2 tax on mineral oil and are subject to a reduced CO2 tax rate on natural gas and LPG. The general tax rates in 2013 are 0.61 NOK per litre of mineral oil, 0.46 NOK per Sm3 of natural gas and 0.68 NPK per kg of LPG. A higher tax rate applies to domestic aviation not covered by the EU ETS (0.71 NOK per litre in 2013).

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