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State Aid

State Aid: Norwegian CO2 compensation scheme approved



The EFTA Surveillance Authority has approved a Norwegian aid scheme for the compensation of indirect emission costs.

The purpose of the scheme is to prevent “carbon leakage” resulting from companies moving their production outside the EEA to avoid such costs.

The scheme is designed to compensate certain energy-intensive industries for increases in electricity prices as a result of the EU Emissions Trading System (ETS). The EU ETS is the first and most extensive international system for trading greenhouse gas emission allowances.

«The Norwegian scheme balances the need to keep the industry sectors exposed to carbon leakage competitive on the global market and to preserve the integrity of the ETS. Our assessment has shown that the scheme complies with EEA rules», said Ms. Oda Helen Sletnes, President of the EFTA Surveillance Authority.

“Carbon leakage” describes the prospect of an increase in global greenhouse gas emissions when companies move production outside the EEA because the cost increases resulting from the EU ETS make them less competitive.

The Authority has found that the scheme complies with the Authority's State Aid Guidelines on aid in the context of the greenhouse gas emission allowance trading scheme.

A non-confidential version of the Decision will be published in the register of state aid decisions on the Authority's website, usually within a month.


For further information, please contact:

Andreas Kjeldsberg Pihl
Press and Information Officer
Tel. (+32)(0)2 286 18 66
Mob. (+32)(0)492 900 187

Other EEA Institutions

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