Norway will subsequent yr implement a useful resource hire tax on onshore wind energy that it says will give society a “fair proportion” of the worth of its huge pure sources, regardless of trade objections.
The Norwegian authorities will right this moment (Friday) current a modified invoice for the introduction of the tax taking impact on 1 January.
It’s proposing an efficient price of 35%, structured as a money circulate tax with a direct deduction of funding prices.
The federal government stated right this moment that the tax will be certain that a “bigger share of the worth added within the wind energy trade will accrue to society as a complete” and that “host municipalities will likely be higher off below the proposal.”
“Authorities revenues will initially be marginal,” it stated, “largely as a result of beneficiant transitional preparations for present wind farms.”
Prime Minister Jonas Gahr Støre stated that Norway has a “lengthy and treasured custom of making certain that the worth added by our frequent pure sources additionally advantages society,” a practice that has “served the nation nicely.”
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Finance minister Trygve Slagsvold Vedum stated that Norway “has a few of the finest wind sources in Europe” and the federal government believes that “society as a complete ought to obtain a fair proportion of the worth added by utilising our frequent sources.”
The federal government insists that investments that had been worthwhile earlier than the tax may even be worthwhile with it.
Norway started a session on the tax in late 2022, at that stage envisaging a 40% price that would have kicked on this yr moderately than subsequent.
But it surely pushed again its plans following trade objections, together with a warning that the tax in its initially proposed type may bankrupt some tasks.
In an announcement right this moment, Norwegian power trade group Fornybar Norge stated that the federal government “has listened to our objections”.
Nevertheless, it added this was nonetheless “hardly ok” contemplating the nation’s want for brand new wind energy and that the tax is “nonetheless not neutrally designed.”
It stated that it had requested a complete exemption for present wind farms, which has not been accepted. “There have been modifications to the transitional preparations, however we want time to see if that is adequate.”
It added that it’s “essential that we are able to preserve the profitability of present onshore wind energy vegetation.”
