Norway Proposes CO2 Tax Hike To Increase Climate Mitigation Funds

Norway has announced plans to nearly double its carbon tax on the nation’s offshore petroleum sector to create a £1 billion fund to help combat the effects of climate change, including in developing nations. In a draft budget released this week, government officials proposed a climate program that would increase the tax on oil companies from about £24 per ton of carbon dioxide to £45 (Nkr410) per ton. The plan would allocate about £1 billion (Nkr10 billion) to promote green energy initiatives, reduce carbon emissions, and improve food security in developing countries. In addition, Norway would pledge about £44 million to help developing nations preserve tropical forests, which play a critical role in storing carbon. Norway has previously helped fund efforts to reduce deforestation in Brazil, Indonesia, and Ethiopia. These new plans come as the oil-rich nation looks to expand its oil exploration into the Barents Sea between Norway and Russia.