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Norway CO2 Tax and Related Climate Excise Duties (CO2-avgift)

Norway CO2 Tax and Related Climate Excise Duties (CO2-avgift): Norway CO2 Tax: Excise Duties, Sector Rates, and Enforcement Risk

Maílis Carrilho
Written by Maílis Carrilho
Updated on December 22nd, 2025

Summary

Norway’s CO2 tax and climate excise duties impose legally binding payment and reporting obligations across fuels and activities, with rates and exemptions updated regularly through the state budget and tax rules. Companies must maintain accurate measurement and reporting because errors can trigger reassessments, back taxes, and sanctions. Sector-specific schemes such as waste incineration duty and mineral product duty are operational with published annual rates. Compliance risk is highest where emissions or fuel-use measurement is complex.

Details

Jurisdictions
  • Norway
Exemptions

This framework is legally binding.

Obligations apply to:

Fuel suppliers/importers and liable entities under excise rules.

Waste incineration facilities and relevant operators under the waste incineration tax regime.

Sectors brought into scope by budget measures, including specific maritime or fisheries applications noted in budget materials. Regjeringen.no

Exceptions:

Reduced rates and exemptions exist for specific uses and sectors, but these can be tightened or removed. Example: changes affecting fishing in distant waters from 1 January 2025 (shift from exemption to reduced rate).

Deep dive

2 min read
Updated Dec 22, 2025

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What’s Required

Norway applies CO2 taxes and climate-related excise duties across multiple fuels and activities, alongside the EU ETS. Obligations fall on importers, producers, and operators depending on the tax design for each category.

Key requirements include:

  • Paying CO2-related excise duties on specified fuels and activities, with rates and exemptions set in annual budgets and tax rules.

  • Maintaining documentation and correct reporting for taxable quantities and uses, subject to audit by the Norwegian Tax Administration.

  • Sector-specific duties, including waste incineration and mineral product duty categories, with published annual rates.

Important Deadlines

  • Annual rate changes: climate and environmental taxes are updated through the state budget process (typically effective 1 January).

  • 2025 example changes: Norway’s Tax Administration documents rate and exemption changes effective 1 January 2025 for certain uses.

  • Waste incineration duty: published 2025 rates and calculation method apply from 1 January 2025.

Current Status

Norway’s CO2 tax and climate excise duties are fully in force and frequently adjusted. The system is a major compliance and cost driver, especially where measurement and reporting accuracy affect tax liability.

Penalties for Non-Compliance

  • Non-compliance typically results in back taxes, interest, and administrative sanctions, and may escalate to enforcement if misreporting is serious.

Examples of Known Violations

  • A widely reported example involved underreported CO2 emissions from an offshore platform, leading to underpaid CO2 tax over multiple years and later repayments for some periods (while parts were time-barred).

Resources


Maílis Carrilho
Added by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
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Added on Dec 24, 2025 by Maílis Carrilho · Updated on Dec 22, 2025