Page 4 - EurOil Annual Review 2021

EurOil JANUARY EurOil

Norwegian oil industry irked

by carbon tax hike

The Nordic state is aiming to achieve a 50-55% reduction in its emissions by 2030

NORWAY NORWAY’S plan to hike carbon taxes over the forward a compelling, comprehensive plan for
next few decades has drawn criticism from the cutting emissions in every sector,” Climate Min-
WHAT: country’s oil and gas industry, which warns that ister Sveinung Rotevatn said in a statement. “We
Norway wants to raise the move will undermine the competitiveness of must make sure it pays to cut greenhouse gas
carbon tax on oil and gas offshore production. [GHG] emissions.”
producers threefold over The Nordic state is aiming to achieve a By mid-2021, the government will also pub-
the next decade. 50-55% reduction in its emissions by 2030 com- lish a white paper on the long-term development
pared with 1990s levels, representing one of the of its energy sector, including oil and gas opera-
WHY: most aggressive climate targets in the world. But tions, Prime Minister Erna Solberg said at a news
The country has among there are doubts about whether this strategy is conference.
the most aggressive compatible with continued oil and gas extrac- “The government will show how the oil and
emissions targets in the tion, which over the decades has made Norway gas industry will cut, by 2030, its emissions by
world. one of the richest countries in the world. 50%,” she said.
The government published an action plan Norway’s climate plan, which will be updated
WHAT NEXT: for how Norway will deliver on its ambitious every few years, also outlines plans for increased
Northern Lights and other goals on January 8. At the heart of the plan is offshore wind power, carbon capture and stor-
CCS ventures stand to a proposal to more than triple the tax on CO2 age (CCS) and hydrogen production. Details on
gain from the increase in emissions. The overall cost of emissions will be these other technologies will be presented in the
carbon tax. raised to NOK2,000 ($237) per tonne by 2030, energy white paper.
with Norway supplementing EU taxes with its A representative of Norway’s main opposi-
own to meet this ceiling. Norwegian oil and gas tion Labour Party told broadcaster NRK that
firms currently pay around NOK800 per tonne, Norway should have set even higher targets for
which is more than most industries, which pay emissions cuts. But the party is willing to hold
less than NOK600. constructive talks with the minority govern-
“For the first time, a government is putting ment, he said.

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