The Government will raise CO2 tax by 5 per cent

Smoke from two pipes in OsloSmoke from two pipes in Oslo. Photo: Håkon Mosvold Larsen.NTB scanpix

The Government wants to increase the C02 tax by 5 percent, Prime Minister Erna Solberg (H) told the press before speaking to the UN General Assembly on Thursday.

“We have said that we will do this, and we will start in this year’s budget,” said Solberg to the Norsk Telegram Byrå (NTB).

At the Granavollen platform, the four government parties agreed to an annual increase in the CO2 tax of 5 per cent until 2025. The increase applies to all sectors that currently have a carbon tax, including the oil sector. The increased revenues will be used to lower other taxes and fees in the same sectors.

Solberg said that together with the quota system, the tax increase helps ensure that it is profitable to choose environmentally-friendly solutions. Several companies will see the increase as an important step to invest in new technology and new solutions because they will have to pay taxes, she added.

Powerful signal
Climate and Environment Minister Ola Elvestuen (V) pointed  out that for his party, increased pollution taxes combined with tax breaks in other areas, are  cornerstones of  Norway’s climate policy.

“It should always be worthwhile to make green choices  and pollution must cost more,” said  Elvestuen,

He believes that although the increase was earlier announced by the Government, it remains a strong signal to the business community .

“They must cut emissions and convert to zero-emission solutions such as electricity, hydrogen and biogas,” he added. .

© NTB Scanpix / #Norway Today

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