NEWS

Norway Increases Carbon Tax on Domestic Production


< Back to all news

Norway Increases Carbon Tax on Domestic Production

Business

Category: Energy

By raising the tax rate from 210 Norwegian Krone to 410 Krone (or €28 to more than €55) per ton of CO2, the Norwegian government is setting one of the highest carbon tax rates in the world.

“The commitment to the environment must be followed up on in the budget and resolutions,” said Bård Vegar Solhjell, minister of the environment.

Much of the newly generated tax revenue will go into governmental fund devoted to investing in clean energy, the environment and public transportation.

By 2013, 33 countries and 18 so-called sub-national jurisdictions will have some sort of levy associated with the emission of CO2, according to the Australian Climate Commission. In many cases, the tax will not only be a narrow tax on CO2 emissions themselves, but a “carbon price,” a floor on the price of fuels that generate climate-changing emissions fixed by cap and trade schemes as well as taxes on coal, gasoline and transportation.

Many environmentalists are praising Norway’s new tax, because it is high. But direct comparisons between carbon emission taxes or disincentives around the world are difficult. For example, Sweden’s carbon tax is set at €101 per ton of carbon for consumers, but much less for its industrial producers.

Source: The New York Times

Published: September 17, 2019