The Norwegian government, industry associations and trade unions have reached an agreement on the future of the Norwegian CO2 compensation scheme, valid from 2024 until 2030.
“The CO2 compensation scheme is essential for maintaining competitive frame conditions for industries in
The agreement between the Norwegian government, Norsk Industri, Industri Energi & Forbundet for ledelse og teknikk, Fellesforbundet, LO, and NHO is valid from 2024 until 2030. It includes an annual maximum CO2 compensation for eligible industries of
“We appreciate the constructive dialogue between the parties that has led to this agreement,” says Aasheim.
The revised CO2 compensation scheme will be subject to approval by
The CO2 compensation scheme is linked to the EU emissions trading system (ETS). The scheme partially compensates for the unintended CO2 price effect to Norwegian power price from the European ETS system. In
“With a predictability for the CO2 compensation scheme, we can continue our ambitious decarbonization efforts at our primary aluminium plants in
Based on current production, it is estimated that Hydro will be eligible for a CO2 compensation of approximately
The purpose of the CO2 compensation scheme is to create a level playing field for European energy intensive industries and prevent carbon leakage, which means energy intensive industries move production to countries without costs for CO2 emissions, but with similar or higher CO2 emissions.
"Our Norwegian smelters’ CO2 emissions are already 75 percent below global average. We are planning significant investments in new technologies to cut CO2 emissions even further and create greener products that the world needs. A predictable CO2 compensation scheme is one of the most critical prerequisites for the industry to continue investing in
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Martine.Rambol.Hagen@hydro.com
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Source:
2024 GlobeNewswire, Inc., source