Companies subject to NOx tax
Companies that would like to join the NOx Fund need to fill out the online application form and sign the Norwegian version of the Participant Agreement and submit it to the Fund. Foreign owned companies must also join the Agreement through a Norwegian representative or an "agent". Both the Norwegian representative and the foreign company have to join the NOx Fund separately and submit the signed Participant Agreement to the Fund.
The company that joins the Fund will receive a Participant Certificate as proof that they are entitled to a tax exemption from the Norwegian NOx tax and may obtain support for NOx reducing measures from the NOx Fund.
The tax liability encompasses emissions of nitrogen oxides (NOx) in energy production from:
- Propulsion machinery with a total installed capacity of over 750 kW
- Motors, boilers and turbines with a total installed capacity of more than 10 MW
- Flares on offshore installations and facilities on land
Companies that join the Environmental Agreement on NOx are entitled to a tax exemption from the tax of 21.17 NOK/kg NOx to the state from the date which the enterprise affiliate to the Environmental Agreement. From the same date, the enterprise will have a payment obligation vis a vis the NOx Fund. The rates of payment to the NOx Fund are NOK 11 per kilo NOx for the offshore industry (emission connected to oil- and gas extraction after PDO is passed so that the field is in a taxable petroleum position) and NOK 4 for the other sectors (shipping, supply-vessels, fishing, aviation, district heating etc.).
For movable rigs the rates are NOK 11 per kilo NOx for rigs in the production phase (after PDO, i.e. when a field's rig activity is in tax position), and for exploration drilling before that the rate is NOK 4 per kilo NOx.
The tax exemption applies to objects from the date they are registered in the Fund. This date is automatically generated when the object is registered through the NOx Fund's portal. It is not possible to report emissions from an object that has occurred prior to the object's registration date in the Fund. The tax exemption has no retroactive effect.
Companies that wish to join have to fill out an online application form and upload a signed copy of the Participant Agreement as well as an authorisation or a statement documenting that the signatory has the authority to legally bind the enterprise (e.g. a company certificate). You can access the online application form through this link.
The signed copy of the Participant Agreement and the company certificate can alternatively be forwarded to the Fund, but the application will not be processed until these are received. Please submit the documents to: Næringslivets NOx-fond, Postboks 5250 Majorstuen, NO-0303 Oslo, Norway.
Participating objects i.e. ships, rigs etc.
If a company has objects that needs to be registered separately in the NOx Fund, please do so through the NOx Fund's portal for affiliation and reporting. An accurate and clear description of the registered object is essential for the exemption from the NOx-tax. In the Fund's web portal an object's registration date will automatically be generated when registered by the company and the tax exemption is valid from this date. Emission from an object prior to the registration date must be reported to the Norwegian Tax Administration.
It is the company's responsibility to keep all information about its registered objects updated.
All companies are encouraged to register any ships with the possibility to operate in Norwegian waters. These ships can be flagged as "inactive" in the Fund's portal when they are not operating in waters subject to Norwegian NOx tax. Only emission subject to Norwegian NOx tax shall be reported to the Fund.
Reporting of emission
Participant enterprises shall report NOx emissions each quarter to the NOx Fund through the NOx Fund's web portal for reporting. Based on the reported emissions the enterprises will be sent an invoice.
According to the Participant Agreement affiliated enterprises shall develop a measure plan identifying possible NOx reducing measures. The purpose of the measure plan is to identify profitable measures the enterprise can implement on its own accord, and cost effective NOx reducing measures that are dependant of support from the NOx Fund in order to be realized.
Only applications regarding specific measures should be submitted to the NOx Fund. The measure plan per se is meant to be an internal document and shall be kept at the enterprise. The NOx Fund is well aware that enterprises may not have any profitable or current cost effective measures. Nevertheless, the enterprise shall undertake a review to reveal potential NOx reducing measures.
Implementation of measures
The Business Sector’s NOx Fund is a cooperative effort where participant enterprises may apply for financial support for NOx reducing measures. The Fund’s success is dependent on that sufficient NOx reducing measures are being implemented, ensuring that the emission obligations vis-à-vis the Environmental Agreement are being met. Although several measures have been implemented already, all new measures that will be implemented will serve as important contributions to ensure that the reduction obligations vis-à-vis the Environmental Agreement are being met.
A total of 917 companies are affiliated to the Environmental Agreement on NOx 2011-2017 per 23.06.16.