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MDG proposes returning CO2 tax revenue to businesses for green investment

The Green Party wants the proceeds from Norway's CO2 levy to be funneled back to companies to fund zero-emission technologies.

Norway imposes a CO2 levy of 1639 kroner per tonne on both enterprises and households to make polluting more costly and spur a shift to greener alternatives. MDG's Oda Indgaard contends that the tax's primary purpose is environmental, not fiscal, and proposes that a large share of the collected funds be redirected to businesses to stimulate investment in zero-emission technologies. She envisions billions of kroner being returned to the private sector, a measure she plans to push as a condition in the budget talks.

Centre Party's finance policy chief Bjørn Arild Gram opposes the suggestion, labeling it a superficial way to mask tax increases. The debate highlights differing views on how climate revenue should be allocated.

Why it matters

It determines whether climate taxes fund the state or directly support green innovation in industry.

In this story

CO2 taxgreen investmentzero-emission technologybudget negotiationsclimate revenue
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