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NOx tax/NOx fund

NOx tax/NOx fund

In 2006 the Norwegian Parliament adopted a tax policy on emissions of NOx from national shipping, among other sources, that took effect on 1 January 2007. The tax amounts to €2/kg NOx emitted from ships, fishing vessels and other industries.

 

As an alternative to paying the tax, industry can voluntarily sign the environmental agreement with the business sector’s NOx fund. Companies that sign the agreement will be exempt from paying the NOx tax in return for their commitment to the obligations laid down by the business sector’s NOx fund, the primary task of which is to provide funding for NOx-reducing measures. All entities obliged to pay the NOx tax can join the environmental agreement, regardless of whether they are Norwegian or foreign-owned or operated. The NOx fund grants support to companies.

 

LNG-fuelled ships are eligible for 200 NOK (€25) per kg annual NOx emission reductions, capped at 75% of the additional investment costs of LNG propulsion. Over the past few years, the NOx Fund has granted funding to two platform supply vessels, three passenger ferries and one gas carrier. An additional 17 LNG-fuelled ships, currently planned or already under construction, have also been granted funding. The total funding for all vessels constructed or planned amounts to almost €50 million.

Further reading

LNG business models for ports

The business model for LNG terminals depends on a range of factors, including regional maritime demand for LNG, availability and type of neighbouring terminals, demand from trucks and inland barges, and land-based demand for industrial use and power generation.