Norway: New CO2 tax exemptions for emissions trading system-covered entities
The exemption applies to ETS covered entities not subject to the EU Effort Sharing Regulation.
The Ministry of Finance in March 2026 implemented an exemption from CO₂ tax for companies covered by the EU emissions trading system (ETS) on the same emissions, following approval by the EFTA Surveillance Authority.
The exemption applies to ETS‑covered entities not subject to the EU Effort Sharing Regulation, while sectors covered by both regimes, such as domestic maritime transport, are subject to a reduced CO₂ tax rate.
The reform also introduces a reduced CO₂ tax rate for natural gas and liquefied petroleum gas used in certain non‑quota chemical industries.
The measure aims to eliminate double carbon pricing, align with EEA state aid rules, and improve predictability for Norwegian businesses while maintaining climate commitments.
For more information, contact a KPMG tax professional in Norway:
Kjerstin Ongre | kjerstin.ongre@kpmg.no