Europe Takes a Giant Step: Historic Carbon Tariff Clearance Ignites a New Era of Sustainability

After a long tug-of-war between the ruling parties Ap and Sp, it finally became clear on Monday that Norway will say yes to the EU’s carbon tariff.

– It was time for it to be clarified, but it is good that we have received a clarification now, says NHO chief Ole Erik Almlid to NTB.

A united business and working life has long pressed to get the government to say yes to the carbon tariff, but until now Ap and Sp have been divided on the issue.

Even out the price

The carbon tariff – or more precisely: carbon border adjustment mechanism (Carbon Border Adjustment Mechanism) – is a tax placed on the import of goods such as steel, aluminium, artificial fertilizers and cement from countries where the industry does not pay CO2 taxes for emissions – and thus can produce more cheaply.

The tax is to equalize the price and thus prevent goods from here being dumped on the European market and outcompeting European companies.

CBAM is also an important pillar in the EU’s large climate package “Ready for 55”. The hope is also that the tax will stimulate other countries to cut their emissions.

CBAM will be introduced from 1 January 2026, but the EU is already running a trial period.

Set aside 50 million

Norway’s “yes” comes in connection with the national budget. There, NOK 50 million has been set aside to build up capacity in, among other things, the customs service to handle the regulation.

– It is important that Norwegian companies have the same regime as their competitors and partners in Europe. We are part of an internal market, Almlid points out.

At the same time, it is currently too early to say when the scheme can be implemented in Norway, writes the government in a press release.

– There are still a number of clarifications between the EFTA countries and the EU, says Finance Minister Trygve Slagsvold Vedum (Sp).

– Voluntary cooperation

The EU first marked the regulation as EEA-relevant, but Norway did not agree.

Norway can nevertheless choose to voluntarily incorporate CBAM into the EEA Agreement. This is what is now being done.

– The government has considered the matter thoroughly and is in favor of the CBAM regulation being introduced in Norway as a voluntary collaboration. The government will now take this message forward in the ongoing dialogue with our partners in EEA cooperation, says Minister for Business Cecilie Myrseth (Ap).

The three EEA countries Norway, Iceland and Liechtenstein are now working to agree on the necessary adaptations before a decision to include the regulation in the EEA agreement can be made.