ESA closes investigation of Norwegian Waste Incineration Tax Exemption
The EFTA Surveillance Authority (ESA) has closed its formal investigation into Norway’s planned exemption from the waste-incineration excise duty for emissions already covered by the EU Emissions Trading System (ETS).
In 2022, Norway introduced a national excise duty on waste incineration. To avoid double carbon pricing for operators already subject to the ETS, under which they must surrender allowances for their previous year’s emissions, Norway proposed exempting ETS-covered emissions from the new duty.
After assessing the measure, which was first notified in February 2024, ESA concluded that the exemption forms part of Norway’s normal taxation system for waste-incineration emissions and does not grant a selective advantage. ESA therefore found that the measure does not constitute State aid under Article 61(1) of the EEA Agreement and is therefore not subject to state aid control.
For more information, see ESA’s decision.