Norway confirms the CO2 tax exemption for its fishing fleet remains in place, as temporary fuel and CO2 tax cuts run until September.
The CO2 tax exemption for Norway’s fishing fleet will remain in force, following several days of political uncertainty around the measure in Oslo.
In recent days, there have been chaotic developments surrounding the exemption, but it is now clear that the existing arrangements will continue.
Industry body Fiskebåt used Tuesday to clarify to political parties in the Storting that there is no reason for the remaining decision to remove the tax for fishing in near waters to be affected by questions over compliance with the EEA Agreement.
“The postponement of the CO2 tax exemption for fishing in near waters from 1 April to 1 May was solely due to practical reasons and not related to state aid rules. The exemption can therefore be implemented without any risk of subsequent sanctions from ESA,” said Jørn Prangerød, public affairs director at Fiskebåt.
All proposals related to the issue were withdrawn in the Storting during the course of the day, meaning there will be no parliamentary consideration of the matter. Norway’s Ministry of Finance has also confirmed that the remaining tax decisions will be implemented from 1 May and will apply until 1 September.
Norwegian Finance Ministry confirms temporary reductions
In a press release, the Ministry of Finance confirmed that diesel and CO2 taxes will be temporarily reduced across several sectors in Norway.
“From 1 May, the tax on diesel for road transport will be reduced by NOK 1.33 per litre (€0.12 / £0.11). Together with changes that came into force on 1 April, the estimated reduction in pump prices amounts to NOK 4.26 per litre (€0.39 / £0.34).
“The tax on diesel for construction and civil engineering will be reduced by NOK 2.50 per litre (€0.23 / £0.20).
“In addition, taxes for shipping and fishing in near waters will be reduced,” the Ministry stated.
The five tax categories affected are fishing and catching in near waters, automotive diesel, construction diesel, domestic non‑quota‑obligated shipping, and domestic quota‑obligated shipping.
According to the Ministry, the first four decisions raised technical tax issues that have now been resolved. The latter four also raise state‑aid questions in relation to ESA, which remain unresolved. All measures are temporary and will apply until 1 September.
The Ministry estimates the temporary CO2 tax reductions will result in a revenue loss of approximately NOK 2.2 billion (€204 million / £176 million).
Fisheries sector voices concern
The recent political uncertainty has raised concern within Norway’s fishing industry.
“The political twists and turns around the CO2 tax give reason for concern in the fishing sector and create increased uncertainty,” said Jan Roger Lerbukt, leader of Norges Fiskarlag.
His comments come as environmental foundation ZERO published a report highlighting the challenges facing the fishing fleet in Norway’s green transition.
The report concludes that the fishing fleet is among the most difficult sectors to decarbonise. Low‑ and zero‑emission solutions for the ocean‑going fleet are not yet commercially available, while the coastal fleet faces constraints linked to a lack of charging infrastructure and immature technology for smaller vessels.
“The report provides an important professional confirmation of the major challenges the industry faces,” Lerbukt said.
“As long as technical alternatives are not in place, the CO2 tax has no real steering effect; it simply becomes an economic burden without offering genuine choices. It is therefore very strange that there is now complete confusion around fuel tax cuts and a tax pause in the political environment in Oslo.”
Power supply and vessel rules highlighted
Lerbukt said the report’s proposals are relevant but warned that warnings from NVE and Statnett about a looming national power deficit make large‑scale electrification of the fishing fleet unrealistic in the near term.
“The lack of local grid capacity in fishing ports is a structural barrier that politicians must address to enable a green transition,” he said.
Norges Fiskarlag is calling for more targeted policy measures. Lerbukt said the temporary exemption adopted by the Storting before Easter should be extended for several years, alongside increased efforts to develop new technology.
He also said a CO2 fund should be considered to ensure that revenues remain within the industry and are used for emissions reduction and fleet renewal rather than flowing directly into the state treasury.
The organisation is also urging changes to vessel design regulations, arguing that length restrictions in the coastal fleet encourage inefficient hull designs that increase fuel consumption.
“Allowing longer and slimmer hulls would significantly reduce energy demand and make room for new environmental technology without compromising stability or crew safety,” Lerbukt said.
“We are calling for a comprehensive dialogue with authorities to help deliver a greener and more future‑oriented Norwegian fishing fleet.”
