The Norwegian National Budget for 2023 proposes a reduction of the CO2
compensation to Norwegian industry of approximately NOK 2.7 billion annually.
Norske Skog expects a reduction in the CO2 compensation payment to be received
from 2023 and onwards of approximately NOK 140 million annually.
Yesterday, 6 October 2022, the Norwegian government presented its National
Budget proposal for 2023. The budget proposes to reduce the CO2 compensation to
Norwegian industry. The CO2 compensation is an EU initiative, which can be
implemented at the discretion of each individual member country, designed to
mitigate the impact of high CO2 allowance (EUA) prices on electricity costs. The
overall ambition is to avoid transfer of energy intensive industries to
countries with less strict climate policies outside the EU, this has been termed
The size of the CO2 compensation is, among other, based on electricity
consumption and the average CO2 allowance price for the preceding year. Starting
in 2023, the government has proposed to introduce a price floor whereby the
industry will only receive compensation for the CO2 allowance price that exceeds
"The Norwegian government had a possibility under the EEA agreement to support
investments in energy intensive industries by using the scope of the CO2
compensation scheme. By first lowering the adjustment factor and now introducing
a floor in the scheme, Norway is losing competitiveness to its European trading
partners. This makes future investments in Norway less likely and increases
uncertainty for the industry", says Sven Ombudstvedt, CEO of Norske Skog ASA.
For Norske Skog, this implies that the Norwegian CO2 compensation to be paid in
2023 under the National Budget for 2023 will be reduced with approximately NOK
140 million. The CO2 compensation to be paid in 2023 is directly tied to
electricity consumption and the related publication paper production in 2022,
and has thus been recognised as a decrease in cost of materials in 2022. The
reduction of the Norwegian CO2 compensation for the first three quarters of 2022
will be reflected in the third quarter results for 2022.
The Norwegian CO2 compensation to be paid in 2022 under the National Budget for
2022 has not been changed, and the payment is expected to be received in the
fourth quarter of 2022.
About Norske Skog
Norske Skog is a world leading producer of publication paper with strong market
positions and customer relations in Europe and Australasia. The Norske Skog
Group operates four mills in Europe, two of which will produce recycled
containerboard following ongoing conversion projects. In addition, the Group
operates one paper mill in Australia. Norske Skog aims to further diversify its
operations and continue its transformation into a growing and high-margin
business through a range of promising energy and bio product development
projects. The Group has approximately 2 100 employees, is headquartered in
Norway and listed on the Oslo Stock Exchange under the ticker NSKOG.
Communications and Public Affairs
For further information:
Norske Skog media:
Vice President Communication and Public Affairs
Mob: +47 917 63 117
Norske Skog financial markets:
Investor Relation Manager
Mob: +47 906 12 919