Claims the incineration tax affects climate investment – news Norway – Overview of news from different parts of the country

– It is called an environmental tax, but on the contrary, we feel that the tax strains local environmental companies and slows down the development of good climate-related environmental measures, says director at Eidsiva Bioenergi, Marit Storvik. Director of Eidsiva Bioenergi, Marit Storvik, says that the current arrangement covers operations at the plant. Photo: Dag Kessel / news She has little understanding that last autumn the government increased the tax on waste incineration at the same time as the Swedes removed their tax. – In Sweden, they realized that the tax had no environmental effect, she says. The tax Storvik is aiming for was introduced in the state budget for 2021. At the time, with a tax rate of NOK 149 per tonne of CO₂. The tax has now increased to NOK 238 per tonne. This means that Norwegian incinerators must pay NOK 238 per tonne of CO₂ to burn rubbish. This is covered by the tax. The tax covers emissions of fossil CO2 (carbon dioxide) into the air when burning waste. The duty to pay does not include emissions from the incineration of waste that does not contain fossil material. The fee obligation arises when waste is submitted for incineration in incineration plants. Exemption from tax is granted when incinerating Sending rubbish to Sweden The director feels that more and more suppliers are choosing to send their rubbish to Sweden rather than sell it in Norway. – We noticed it as soon as this tax change was announced. Then all the suppliers came to us and announced that they wanted to renegotiate the contracts. Trehörningen energy center outside Hamar. Photo: Dag Kessel / news – Now it’s about trying and saving further operation of the facility, she says. Storvik says that this will come at the expense of investment in specific environmental projects that would have reduced emissions. Will extend the fee This week, Storvik and the interest organization Norsk Fjernvarme invited a press conference at the Trehørningen energy center outside Hamar. There, the waste industry presented its plan for how the fee can be changed. Central to the plan is a report from the analysis company Norwaste where they point to specific proposals. Among other things, Norwaste proposes to extend the current incineration fee to also apply to residual waste sent out of the country. Norwaste proposes to extend the fee to also apply to waste that is exported. Photo: Stig Westre / news – If a tax on waste incineration is intended to reduce fossil CO₂ emissions, it must have an effect in the market. Only then will it be able to stimulate increased sorting and material recycling, and carbon capture, says Henrik Lystad in Norwaste. According to the report from the industry, the current tax does not have this effect. He points out that a significant proportion of the waste that needs to be recovered for energy is sent to Sweden without being subject to the same tax. – This counteracts the effect of the tax and means that it probably has very little effect. According to Norwaste, countries such as the Netherlands, Belgium and France also have taxes on waste that is sent out of the country. Photo: Stig Westre / news Should stimulate carbon capture The incineration tax has also previously been the subject of debate. The purpose of the tax is to stimulate recycling and carbon capture. In Norway, the Ministry of Finance is responsible for the tax. In a written reply from State Secretary Lars Vangen (Sp), it is stated that the export and incineration of waste in other countries does not result in emissions in the Norwegian emissions accounts and that it is therefore not covered by the tax in Norway. Lars Vangen is state secretary in the Ministry of Finance. He points out that the tax rewards facilities in Norway that sort out fossil material from the waste, or that invest in technology for capturing and storing their emissions. – The industry therefore has the opportunity to adapt to the tax and contribute to us cutting our emissions together and reaching our climate targets. Waste exported to Sweden and Denmark is covered by the EU’s quota system. – Increased emissions as a result of the incineration of Norwegian waste in these facilities will therefore have little to no effect globally, as they will be matched by reduced emissions from other parts of the quota system.



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