Climate change

Norwegian National Allocation Plan

On December 21 the Government put forward it’s National Allocation Plan. The Norwegian emission trading system (ETS) will cover more than 40 % of the greenhouse gas emissions from Norwegian sources, and hence become a vital part of the Norwegian efforts to ensure compliance with the Kyoto Protocol.

16/01/2008 :: The Norwegian National Allocation Plan (NAP) has been under consultation until January 14, and will shortly be submitted to the Efta Surveillance Authority.

The Norwegian NAP sets out the framework for the allocation to installations obliged to surrender emission allowances under the emissions trading scheme. The Norwegian emission trading system (ETS) will cover more than 40 % of the greenhouse gas emissions from Norwegian sources, and hence become a vital part of the Norwegian efforts to ensure compliance with the Kyoto Protocol.

The principles for allocation will give incentives for emission reductions, and enable costeffectiveness across different sectors. Some allowances will be allocated free of charge to existing installations, but more than half of the total quantity of allowances could be sold at market conditions.

The allocation free of charge for the trading period 2008-2012 will be calculated based on the installations’ historical emissions in 1998-2001. Moreover, a reserve will be set aside for new gas-fired power plants based on technology for carbon capture and storage (CCS) and for highly efficient heat and power plants. The government’s position is that no business shall rely upon allocation free of charge post 2012.

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