The Norwegian Environment Agency has issued a decision to exclude Norske Skog
Skogn and Norske Skog Saugbrugs from the EU Emissions Trading System (EU ETS)
for the period 2026 to 2030. The decision is based on a revised qualification
criterion, which states that facilities exceeding 95% of emissions deriving from
sustainable biomass no longer will qualify for free CO2 allowances. This ruling
has significant economic and competitive consequences for Norske Skog, which has
invested substantial resources over several decades to become a leader in low
fossil CO2 emissions from the mills.

Norske Skog CEO Geir Drangsland expresses deep disappointment over the decision:

"This is a major setback for sustainable industry and a clear signal that
prioritizing renewable energy and sustainable solutions does not pay off. Norske
Skog has heavily invested in energy efficiency and CO2 reduction, implementing
multiple measures to minimize our fossil carbon footprint. This decision
penalizes those who have worked to reduce greenhouse gas emissions and instead
incentivizes increased use of fossil fuels. This will slow down the green
transition." 

The basis for the exclusion is the implementation of a revised qualification
criterion in the EU ETS scheme for the 2026-2030 period. The criterion excludes
facilities where more than 95% of greenhouse gas (GHG) emissions, on average,
during the qualification period from 2019 to 2023, come from sustainable
biomass-as defined by the Renewable Energy Directive (RED II)-instead of fossil
fuels. As a result, facilities that have successfully reduced their fossil
carbon footprint will no longer have incentives to be sustainability leaders
within their industry. Facilities excluded from the EU ETS scheme will not be
required to submit emissions allowances (EUAs) for their greenhouse gas
emissions.

"We have always been committed to climate responsibility and have made
significant investments to reduce our carbon footprint. Now, we are being
penalized for prioritizing sustainable solutions. We also believe that our
emissions during the qualification period do not exceed the threshold for
emissions from sustainable biomass, as defined by the regulations, and that our
operations should therefore remain included in the EU ETS system. For this
reason, we will appeal the decision to the Ministry of Climate and Environment,
as it is crucial for the competitiveness of our businesses and the future of
green industry in Norway," says Drangsland.

If the decision to exclude Norske Skog Skogn and Norske Skog Saugbrugs stands,
these mills will neither be allocated free allowances (EUAs) nor be required to
submit emissions allowances (EUAs) to cover their greenhouse gas emissions from
January 1, 2026, to December 31, 2030. Norske Skog's Norwegian mills-Norske Skog
Saugbrugs and Norske Skog Skogn-will collectively lose approximately NOK 120
million per year, or NOK 600 million in total over the entire period, as a
result of the Norwegian Environment Agency's decision.



For further information:
Norske Skog media:
Vice President Corporate Communication and Public Affairs
Carsten Dybevig
carsten.dybevig@norskeskog.com
Mob: +47 917 63 117

Norske Skog Investor Relations:
Senior Vice President Corporate Finance
Even Lund
even.lund@norskeskog.com
Mob: +47 906 12 919