The EFTA Surveillance Authority (ESA) has opened a formal investigation into two proposed environmental tax exemptions in Norway. The measures aim to exempt companies covered by the Emissions Trading Scheme (ETS) from certain environmental taxes.
The first measure concerns an exemption from excise duty on waste incineration for undertakings subject to the EU Emissions Trading System. The second measure is an exemption from CO2 tax for liquefied petroleum gas (‘LPG’) and natural gas for the processing industry for undertakings subject to the EU Emissions Trading System.
With the preliminary view that the measures could qualify as State aid, ESA has expressed doubts regarding the compliance with all the conditions outlined in section 4.7 of the Guidelines on State aid for climate, environmental protection, and energy (CEEAG) concerning "Aid in the form of reductions of environmental taxes and parafiscal levies”.
Additionally, in the decision to open the formal investigation, ESA questions whether the measures could be covered by the General Block Exemption Regulation or be found directly compatible under Article 61(3)(c) of the EEA Agreement.
Interested parties are invited to submit their comments within one month of the publication of the decision in the Official Journal of the EU.
For further information: see EFTA’s Decision