Subsidies and Countervailing Measures |
G/SCM/N/253/NOR |
Norway |
2013 |
|
Grants and direct payments |
Energy, Services |
|
Environment related objective
|
Policy objective of the subsidy
The scheme of the Centres for Environment -friendly Energy Research (FME) seeks to develop expertise and promote innovation through focus on long-term research in selected areas of environment -friendly energy and CO2 management in close cooperation between prominent research communities, industrial companies and public entities.
The scheme seeks to enhance technology transfer, internationalisation and researcher training.
|
Measure description
|
Coverage of the measure
|
2.8 Centres for environment friendly energy research (FME)
|
5. To whom and how the subsidy is provided
The FME grants are based on an open call where a host institution and partners apply for FME status. The scheme is limited to R&D-activity within the thematic area of renewable energy, energy efficiency and CO2-management. The scheme is open to participation of large, internationally oriented enterprises as well as research-intensive small and medium-sized enterprises. In order to take part in an FME, it is not necessary to have headquarters located in Norway; any foreign company, even without operations in Norway, may take part. The host institution, in which the FME will be based, can be a university or a non-profit research institute. It must be situated in Norway.
The RCN will cover up to a maximum 50 per cent of the FME's annual budget. The host Institution with partners undertakes to contribute at least 50 per cent of the centres' annual budget. At least 25 per cent of the FME's budget must come from undertaking partners.
The FMEs will dedicate the greatest part of their resources to fundamental research. In general, 75 per cent of the research carried out is to be fundamental research and the remaining 25 per cent is to cover industrial research. Most projects will cover both fundamental and industrial research but there may be some projects which will consist of industrial research exclusively.
|
Type of measure
|
Grant
|
ICS - HS Code
|
|
Subsidy amount
|
|
Implementation period
|
2009-2017
|
Keywords
|
Renewable
Energy
Environment
Natural resources
|
|
Subsidies and Countervailing Measures |
G/SCM/N/253/NOR |
Norway |
2013 |
|
Grants and direct payments |
Other, Services |
4.1 National Innovation scheme |
Environment related objective
|
Policy objective of the subsidy
Promote information and capacity building for more sustainable production and consumption patterns, including waste reduction and recycling.
|
Measure description
|
Coverage of the measure
|
4.1 National Innovation scheme
|
5. To whom and how the subsidy is provided
Support is granted to a few projects. Financial support to these companies takes most of the aid available.
|
Type of measure
|
One-off investment
|
ICS - HS Code
|
|
Subsidy amount
|
|
Implementation period
|
1990-2011
|
Keywords
|
Environment
Recycle
Waste
Sustainable
|
|
Subsidies and Countervailing Measures |
G/SCM/N/253/NOR |
Norway |
2013 |
|
Grants and direct payments |
Energy, All products/economic activities |
5.1.1 The Energy Fund |
Environment related objective
|
To promote energy efficiency and renewable energy technologies.
3. Policy objective of the subsidy
An important policy instrument to promote energy efficiency, the promotion of renewable energy and the development of energy and climate technologies is the availability of investment aid through the public enterprise Enova. Enova’s activities are financed by resources in a dedicated fund, “the Energy Fund”.
Enova’s management of the Energy Fund is subject to the following six main goals:
· Development and market introduction of energy and climate technologies.
· More efficient and flexible use of energy.
· Increase the use of other energy carriers than electricity, natural gas and oil for heating.
· Increase the use of new energy resources, including energy recovery and bioenergy.
· Well-functioning markets for efficient energy, climate and environmentally friendly solutions.
· Increase the knowledge level in society about energy efficient, climate and environmentally
|
Measure description
|
Coverage of the measure
|
5.1.1 The Energy Fund
|
Energy sector.
5. To whom and how the subsidy is provided
Eligible recipients for aid under the Energy Fund are:
· Undertakings investing in energy saving or conversion to more renewable energy sources in buildings, industry and construction.
· Undertakings investing in renewable energy installation for internal use or external sale.
· Undertakings investing in energy recovery of which the waste heat is exclusively or mainly used for electricity production and minor amounts are used for heat in district heating installations.
· Undertakings investing in energy efficient district heating installations.
· Municipalities and other regional entities investing in any of the above.
· Households investing in energy saving measures or conversion from oil electricity to waterborne renewable energy solutions for heating purposes.
The aid recipients are not limited to undertakings registered in Norway. However, to be eligible for aid the projects must take place within Norway.
|
Type of measure
|
Investment aid
|
ICS - HS Code
|
|
Subsidy amount
|
|
Implementation period
|
Since 2002
|
Keywords
|
Energy
Environment
Climate
Renewable
Natural resources
Bio
Energy
Conservation
|
|
Subsidies and Countervailing Measures |
G/SCM/N/253/NOR |
Norway |
2013 |
|
Grants and direct payments |
Energy, All products/economic activities |
5.2. The Bioenergy Scheme |
Environment related objective
|
Policy objective of the subsidy
The objective of the scheme is to promote the production and use of bioenergy as an environmentally friendly alternative to fossil energy.
|
Measure description
|
Coverage of the measure
|
5.2. The Bioenergy Scheme
|
5. To whom and how the subsidy is provided
The scheme applies to all types of companies, all regions and all sectors, but the main target groups are farmers and forest owners.
|
Type of measure
|
Grant
|
ICS - HS Code
|
|
Subsidy amount
|
|
Implementation period
|
Since 2002
|
Keywords
|
Bio
Energy
Environment
Forest
|
|
Subsidies and Countervailing Measures |
G/SCM/N/253/NOR |
Norway |
2013 |
|
Grants and direct payments |
Energy, Manufacturing, Services |
|
Environment related objective
|
To reduce green house gas emissions.
3. Policy objective of the subsidy
To help introduce new and "green" transport technologies, for instance renewable fuels, and transport practice.
|
Measure description
|
Coverage of the measure
|
5.3. TRANSNOVA – Schemes for introduction of zero and low emission transport technologies and transport practice
|
5. To whom and how the subsidy is provided
Regional and local authorities, private companies, NGO's, research institutes and other organizations can apply to Transnova for grants. The scheme do not apply to national authorities and households/private individual consumers.
|
Type of measure
|
Grants/investment support
|
ICS - HS Code
|
|
Subsidy amount
|
|
Implementation period
|
Since 2009
|
Keywords
|
|
|
Subsidies and Countervailing Measures |
G/SCM/N/253/NOR |
Norway |
2013 |
|
Grants and direct payments |
Energy, Manufacturing, Other |
|
Environment related objective
|
Subsidy to address competitive concerns linked to energy taxes and conditioned to the adoption of energy efficiency programmes.
3. Policy objective of the subsidy
The electricity tax was introduced 1 July 1951. The above-mentioned tax concessions have been carried through to avoid an undesirable worsening of the concerned companies' competitive power. Tax concessions are for pulp and paper plants with approved energy efficiency programmes, energy intensive processes, and green houses; Tax concession: Electricity delivered to pulp and paper plants with approved energy efficiency programmes, energy intensive processes, and green houses are exempt from the tax.
|
Measure description
|
Coverage of the measure
|
6.4 Exemption from electricity tax for energy intensive industries, paper and pulp industry and greenhouses
|
5. To whom and how the subsidy is granted.
Tax concessions for pulp and paper plants with approved energy efficiency programmes, energy intensive processes, and green houses.
Main rules: An excise duty is levied on electricity supplied to manufacturing industries with a rate of 0.0045 NOK per kWh for the years below.
Tax concession: Electricity delivered to pulp and paper plants with approved energy efficiency programmes, energy intensive processes, and green houses are exempt from the tax.
|
Type of measure
|
Tax concessions
|
ICS - HS Code
|
|
Subsidy amount
|
|
Implementation period
|
Since 1993
|
Keywords
|
|
|
Subsidies and Countervailing Measures |
G/SCM/N/253/NOR |
Norway |
2013 |
Climate change mitigation and adaptation |
Tax concessions |
Energy |
|
Environment related objective
|
To address competitive concerns linked to carbon taxes
3. Policy objective of the subsidy
The CO2 taxes were introduced 1 January 1991 and are high compared to similar taxes that have been established or proposed in other countries. From 1 September 2010 the CO2 tax also applies to natural gas and LPG used on the mainland (CO2 taxes already apply to natural gas used in offshore activity). The tax on mineral oil (base-tax on heating oil) was introduced 1 January 2000. From 1 September 2008 undertakings covered by the EU Emission Trading Scheme are exempted from the CO2 tax on mineral oil, in order to avoid the use of two economic instruments (tax and quota) to reduce the same emissions. Exemptions and reduced rates for undertakings covered by the EU Emission Trading Scheme are therefore not included in the listed figures for the tax expenditures.
|
Measure description
|
Coverage of the measure
|
7.1 Exemptions and reduced rates in the CO2 taxes and in the tax on mineral oil (base tax on mineral oil)
|
5. To whom and how the subsidy is granted.
Tax concessions for the pulp and paper industry and the fish oil and fish meal industries.
(a) CO2 tax
Main rules: An excise duty is levied on mineral oil, natural gas and LPG. In 2011 the CO2 tax on mineral oil was NOK 0.59 per litre and in 2012 the tax was NOK 0.60 per litre. The CO2 tax on natural gas was NOK 0.44 per sm3 in 2011 and NOK 0.45 per Sm3 in 2012. The CO2 tax on LPG was NOK 0.66 per kg in 2011 and NOK 0.67 per kg in 2012.
Tax concession: Mineral oil used in the fish oil and fish meal industries is subject to a reduced CO2 tax rate. The reduced CO2 tax was NOK 0.31 per litre in 2011 and 2012.
Undertakings covered by the EU Emission Trading Scheme are exempted from the CO2 tax on mineral oil, in order to avoid double regulation. Manufacturing and mining and undertakings covered by the EU Emission Trading Scheme are however levied a minimum rate of NOK 0,05 per Sm3 natural gas.
Vessels used for fishing and hunting are exempted from the CO2 tax on mineral oil, natural gas and LPG. Green houses have also been exempted from the CO2 taxes on natural gas and LPG.
(b) Tax on mineral oil (base tax on heating oil)
Main rules: An excise duty is levied on mineral oil. In 2011 the tax rate was NOK 0.983 per litre and in 2012 the tax was NOK 0.999 per litre.
Tax concession: For the usage of mineral oil in the pulp and paper industry and in the production of pigments and colouring agents a reduced tax rate is applied. The reduced tax rate was NOK 0.126 NOK per litre in 2011 and 2012.
Vessels used for fishing and catching and the fish oil and fish meal industries are exempted from the tax on mineral oil (base tax on mineral oil).
|
Type of measure
|
Tax concessions
|
ICS - HS Code
|
|
Subsidy amount
|
|
Implementation period
|
Starting date:
(a) CO2 tax: 1 January 1993
(b) Tax on mineral oil: 1 January 2000
|
Keywords
|
|
|
Subsidies and Countervailing Measures |
G/SCM/N/253/NOR |
Norway |
2013 |
Climate change mitigation and adaptation |
Grants and direct payments |
Energy |
CO2 Technology Centre Mongstad (TCM) project |
Environment related objective
|
To allow large scale carbon capture.
3. Policy objective of the subsidy
The objective of the TCM is to test, verify, and demonstrate different concepts and technologies capable of reducing costs and risks related to large scale carbon capture.
The test facilities at TCM will test two post-combustion technologies, amine absorption and ammonium carbon ate absorption (chilled ammonia). Both technologies, provided by two different suppliers, will be tested in parallel. TCM will have a capture capacity of 100 000 tons of CO2 a year from two different sources of flue gas.
|
Measure description
|
Coverage of the measure
|
CO2 Technology Centre Mongstad (TCM) project
|
5. To whom and how the subsidy is provided.
The TCM project is operated by a so-called unlimited company with shared liability. Statoil participates with a share of 20 per cent in the Company, Shell and SASOL participates with a share of 2.44 per cent each, whereas the State covers the remaining 75.12 per cent. Should other undertakings invest in the Company, the State's share will be reduced accordingly.
The State participation is managed by Gassnova SF, a state-owned enterprise for CO2 capture and storage.
|
Type of measure
|
Grant
|
ICS - HS Code
|
|
Subsidy amount
|
|
Implementation period
|
Since 2009
|
Keywords
|
|
|
Subsidies and Countervailing Measures |
G/SCM/N/253/NOR |
Norway |
2013 |
Climate change mitigation and adaptation |
Grants and direct payments |
Energy |
|
Environment related objective
|
To allow full scale carbon capture.
3. Policy objective of the subsidy
The objective of the CCM project is to establish a full scale CO2 - capture plant to be retro-fitted into the gas-fired combined heat and power plant at Mongstad.
In 2006, the Norwegian state and Statoil signed the Implementation Agreement, which stated that the parties to the agreement shall co-operate in developing CO2-capture technology and the establishment of a full-scale capture facility at Mongstad. In 2011, the Norwegian state and Statoil signed the Development Agreement, which regulates the rights and obligations of the parties to the agreement on issues related to the development phase of the full scale project.
|
Measure description
|
Coverage of the measure
|
Full scale CO2 Capture project at Mongstad (CCM) – Development Agreement
|
5. To whom and how the subsidy is provided.
Funding for the development and planning stages of the Carbon Capture Mongstad facility is awarded to Statoil as yearly grants over the state budget. Gassnova SF manages the Norwegian state’s interests as defined in the Development Agreement between the Norwegian state and Statoil.
|
Type of measure
|
Grant
|
ICS - HS Code
|
|
Subsidy amount
|
|
Implementation period
|
2012-2016
|
Keywords
|
|
|
Subsidies and Countervailing Measures |
G/SCM/N/253/NOR |
Norway |
2013 |
Sustainable forestry management |
Tax concessions |
Forestry |
The Forest Fund Scheme |
Environment related objective
|
Policy objective of the subsidy
The objective is to promote sustainable utilisation of forest resources. Due to the particular circumstances in the forest sector caused by the long production period, forest owners are conceded tax benefits to promote long-term forest investments.
|
Measure description
|
Coverage of the measure
|
The Forest Fund Scheme
|
Forestry sector.
5. To whom and how the subsidy is provided
Forestry income is in principle being taxed as other economic activities. Norwegian forest owners are however subject to two special tax schemes.
The Forest fund is a mandatory forest investment scheme. The Forestry Act requires all forest owners to place into the fund from 4 to 40 per cent of the gross sales value of the round wood. At the time of sale, the buyer automatically deducts a pre-decided percentage from the sale receipts. This amount is deposited in the forest owner fund account. The money may be used for specified forestry investments. The amount deposited is not considered as taxable income at the time of deposit.
Long-range forest investments may be fully deducted on the income tax return for the year the investment is made. 15 per cent of the amount disbursed from the fund account for this investment is considered as taxable income the year the disbursement is made. The tax treatment entails that the forest owner receives an interest free tax credit and that 85 per cent of the forest owner’s deposit on the forest fund is not taxed.
The forest owner does not receive any interests generated by the fund. The interest is used for designated purposes to the benefit of Norwegian forestry.
Average tax assessment: The yearly income tax for the forest owner is based on the last 5 years average income. The marginal tax may thus be reduced compared to other income groups, where the single last year income is the basis for taxation. The system implies that the forest owner receives a tax credit. The cost of this tax concession is not estimated.
|
Type of measure
|
Tax concessions
|
ICS - HS Code
|
|
Subsidy amount
|
|
Implementation period
|
Since 1965
|
Keywords
|
|
|