Norway NOx and NOx Fund

This is a NOx tax applicable mainly to national industries including shipping. The NOx tax is collected from participating industries and is fed into a NOx fund. The participating companies could include oil and gas producers, fishing and offshore supply vessels, ferries, airlines, cargo, railways, land based industry, etc. The NOx fund then provides financial incentives for those participating organisations that want to implement NOx reduction measures including shipping industry.

This incentive system in Norway is only applicable to domestic shipping around Norway. It is an example of an effective local program that tries to create a finical scheme and business case for NOx reduction from shipping. These funds are generated by gathering revenue from companies that emit NOx emissions by making them subject to a NOx tax. On the basis of the scheme, a large number of ships have so far been equipped with NOx reduction technologies.

As for shipping, this started from 1st January 2007 and tax level is 1.9 €per kg NOx. It is applicable to propulsions engines exceeding 750 kW. This fund has so far widely funded major Norwegian initiatives such as the move to LNG as fuel for ships operating in Norwegian water (MariEMS 2017).