The Norwegian National Budget for 2024 proposes a further reduction of the CO2
compensation to Norwegian industry. Norske Skog expects a reduction in the CO2
compensation payment to be received from 2024 and onwards of approximately NOK
100 million annually.

Today, 6 October 2023, the Norwegian government presented its National Budget
proposal for 2024. 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
Carbon Leakage.

The size of the CO2 compensation is, among other, based on electricity
consumption and the average CO2 allowance price for the preceding year. The
government has proposed to increase the price floor whereby the industry will
only receive compensation for the CO2 allowance price that exceeds NOK 375.
Prior to today's announcement the floor was set at NOK 200.

For Norske Skog, this implies that the Norwegian CO2 compensation to be paid in
2024 under the National Budget for 2024 will be reduced with approximately NOK
100 million. The CO2 compensation to be paid in 2024 is directly tied to
electricity consumption and the related publication paper production in 2023 and
has thus been recognised as a decrease in cost of materials in 2023. The
reduction of the Norwegian CO2 compensation for the first three quarters of 2023
will be reflected in the third quarter results for 2023.

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, which produce publication paper, recycled
packaging paper, energy and bioproducts. 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.

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

Norske Skog financial markets:
Investor Relations Manager
Even Lund
Email: even.lund@norskeskog.com
Mob: +47 906 12 919