EFTA Approves Eco Tax Incentives For Norwegian Ships

by Ulrika Lomas,, Brussels

02 December 2016

The European Free Trade Association Surveillance Authority (EFTA Surv) has approved a tax-based state aid scheme aimed at reducing maritime transport pollution in Norway.

Under the program, a reduced rate of taxation will be applied to electricity directly provided to vessels, with the exception of private pleasure craft. The tax break applies to electricity supplied to vessels while in port, and to the recharging of ships’ batteries.

The aim of the scheme is to encourage the use of a cleaner source of power over traditional fossil fuels, and reduce Norway’s overall carbon emissions.

The Norwegian Government has notified EFTA Surv that the tax incentive will be in place for 10 years starting on January 1, 2017.

“This scheme can alleviate air pollution in ports, fjords, and along the Norwegian coast in general,” said EFTA Surv President Sven Erik Svedman.

“The EEA (European Economic Area) state aid rules can be used to further such environmentally friendly and cost-efficient solutions,” he explained.

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