Norway's greenhouse gas emissions declined by 3.5% in 2020

4 Nov 2021

According to Statistics Norway, greenhouse gas (GHG) emissions in the country declined by 3.5% in 2020 to 49.3 MtCO2eq (-1.8 MtCO2eq) thanks to a reduction in emissions from oil and gas extraction (-5%, i.e. -722 ktCO2eq), in air traffic (-32%, i.e. -356 ktCO2eq), and in road transport (-4%, i.e. -346 ktCO2eq, due to travel restriction, home office and the increasing share of electric cars and rechargeable hybrid vehicles). Overall, Norway’s GHG emissions in 2020 stood 4.2% below their 1990 levels.

Norway unveiled in January 2021 a comprehensive climate action plan to 2030. The plan focuses on greenhouse gas (GHG) emissions that are not included in the Emissions Trading System (ETS), including emissions from transport, waste, agriculture, and buildings, and some emissions from industrial production and the oil and gas industry. In October 2021, it presented plans to increase the CO2 tax by 28% from NOK591/tCO2 (€60/tCO2) in 2021 to NOK766/tCO2 (€78/tCO2) in 2022. In addition, the country will no longer compensate the increase in the CO2 tax with a reduction in the road use tax. It will also expand the tax base by removing the exemption from the CO2 tax for the use of fossil gas in the greenhouse industry and will impose a tax on waste incineration. However, the government has proposed to reduce the electricity tax and the motor insurance tax and to increase the travel deduction for those travelling a lot, in a bid to prevent certain groups from being hit disproportionately hard. The tax will gradually increase to reach NOK2,000/tCO2 (€203/tCO2) in 2030, following the country’s climate plan.

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