NORWAY Law and Practice Contributed by: Elise Johansen, Tonje Hagen Geiran and Lene Marita Berg Hermann, Wikborg Rein Advokatfirma AS
loss caused by pollution. Liability is generally strict, subject to causation and proportionality limits. In practice, enforcement typically relies on adminis- trative measures, with criminal sanctions reserved for
that join the environmental agreement administered through the NOₓ Fund receive full exemption from NOₓ tax in exchange for paying into the fund and commit- ting to collective emission reduction targets. These mechanisms are designed to co-ordinate different regulatory instruments rather than to reward demon- strated environmental performance. Enova, a state-owned enterprise, provides financial support for projects that promote energy efficiency, renewable energy and emission reductions. Similarly, Innovation Norway and the Research Council of Nor- way offer grants and incentives for green innovation and technology development. The Norwegian state supports a range of green initia- tives, including Northern Lights, a full-scale carbon capture, transport and storage project, and floating offshore wind projects such as Utsira Nord. Support includes direct funding, investment incentives and technology development grants. 6.4 Shareholder or Parent Company Liability Under Norwegian law, shareholders and parent com- panies are generally not directly liable for environmen- tal damage or breaches of environmental law commit- ted by a subsidiary, based on the principle of limited liability in the Companies Act ( Aksjeloven ), Sections 1–2. However, for public law environmental obligations (investigations, clean-up orders and cost recovery), parent companies can be held liable directly under the Pollution Control Act ( Forurensningsloven ) without piercing the corporate veil, where they have: • actual control and management of the subsidiary’s operations; • economic interest in the polluting activity; and • practical ability to prevent pollution or implement remedial measures. This liability is based on interpretation of the Pollu- tion Control Act ( Forurensningsloven ), Sections 7, 51 and 76, which use broad language (“anyone who has, does or sets in motion something that leads to pol- lution”).
serious or repeated violations. 6.2 Environmental Taxes The following environmental taxes apply.
• Taxes on greenhouse gas emissions, including: (a) CO₂ tax on emissions from various sectors; (b) CO₂ tax on petroleum activities on the conti- nental shelf; (c) environmental tax on hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs); (d) one-time vehicle tax (calculated CO₂ compo- nent); and (e) tax related to the trading of emission allow- ances. • Taxes on NOx and sulphur emissions, including: (a) NOx tax; (b) NOx tax on petroleum activities on the conti- nental shelf; (c) sulphur tax; and (d) one-time vehicle tax (calculated NOx compo- nent). • Road use and pollution taxes, addressing noise and local air pollution, including: (a) road use tax on petrol; (b) road use tax on diesel; and (c) lubricating oil tax and related charges. • Waste-related taxes, including: (a) tax on final waste treatment; and (b) environmental tax on beverage packaging. • Other environmental taxes, including: (a) tax on environmentally hazardous chemicals (TRI, PER); (b) tax on pesticides; and (c) base tax on mineral oil and similar products. 6.3 Incentives, Exemptions and Penalties Companies participating in the EU Emissions Trad- ing System (ETS) receive substantially reduced CO₂ tax rates (typically 93–100% reductions) on quota- liable emissions to avoid double regulation, though important exceptions exist for sectors such as petro- leum and domestic aviation. Separately, companies
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