FX.co ★ Norsk Hydro: Industry, Norwegian Government Agree On CO2 Compensation Scheme In Norway

Norsk Hydro has announced that an agreement on the future of the Norwegian CO2 compensation scheme has been reached between the Norwegian government, industry associations, and trade unions. This agreement, which is set to go into effect from 2024 until 2030, includes a yearly cap on CO2 compensation for eligible industries set at 7 billion Norwegian Kroner. The entities involved in this agreement are the Norwegian government, Norsk Industri, Industri Energi and Forbundet for ledelse og teknikk, Fellesforbundet, LO, and NHO.

In light of their current production levels, Norsk Hydro is estimating that they will qualify for a CO2 compensation amounting to roughly 3.2 billion Norwegian Kroner for the year 2024, which should be payable in 2025. They have noted, however, that the updated CO2 compensation scheme would have to get approval from the EFTA Surveillance Authority and also pass the Norwegian Parliament's annual approval.