WORLD TRADE
ORGANIZATIONG/SCM/N/95/NOR
17 July 2003
(03-3872)
Committee on Subsidies and
Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the Agreement
on Subsidies and Countervailing Measures
NORWAY
The following communication, dated 15 July 2003, has been received from the Permanent
Mission of Norway.
_______________
TABLE OF CONTENTS
Page
1. INTRO DUCTIO N ................................................................................................................ ...3
2. ASSISTANCE TO RESEARCH AND DEVELOPMENT SCHEMES ..............................3
2.1 Industrial R&D Contracts ................................................................................................... ...3
2.2 Public R&D Contracts ....................................................................................................... ......4
2.3 Industrial R&D programmes and projects ...........................................................................5
3. ASSISTANCE TO DIS ADVANTAGED RE GIONS ............................................................7
3.1 Regional Development Grant (Ch. 2425) ...............................................................................7
3.2 Scheme for Restructuring Regions Dependent on a Single Industry ..................................8
3.3 The Norwegian Corporation for Industrial Estates and Development (SIVA) ..................93.4 National Programmes for Regional Development ..............................................................10
4. ASSISTANCE TO SMALL AND ME DIUM SIZED CO MPANIES ................................11
4.1 Development Grants ......................................................................................................... .....11
4.2 The Public Advisory System ................................................................................................. 12
5. ASSISTANCE TO ENVIRONM ENT ..................................................................................13
5.1 New name: Aid for development and knowledge and information on sustainable
production and consumption ................................................................................................13
5.2 Guarantee and Loan Facility to the Co mpany Responsible for Hazardous Waste ..........14
5.3 The Energy Fund ............................................................................................................ .......15
5.4 Norwegian Environmental Fund ..........................................................................................16G/SCM/N/95/NOR
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6. ASSISTANCE TO EXPO RT PROMOTION ......................................................................17
6.1 The Programme for Export Development in Small and Medium-sized
Enterprises (SMEs) (Renamed to En trepreneur Programme in 1.2.2002). ......................17
6.2 Export Credit Financing Scheme .........................................................................................17
6.3 Export Credit Guarantees .................................................................................................. ...18
7. ASSISTANCE TO SPECIFIC  INDUSTRY SE CTORS .....................................................19
7.1 Contract Related Operating Aid ..........................................................................................19
7.2 Exemption from/reduction of SO2 and CO2 taxes .............................................................20
7.3 Press s ubsidies ............................................................................................................ ............22
8 ASSISTANCE TO THE FI SHERY SECT OR ....................................................................23
8.1 Transport Support .......................................................................................................... .......23
8.2 Support for Specific Fisheries ............................................................................................. ..24
8.3 Interest Rate Subsidies for Fishing Vessels for Domestic Deliveries .................................24
8.4 Support to the Modernisation and Capacity Adjustment of the Fishing Fleet;
Contract Subsidies and Decommissioning Grant ...............................................................25
8.5   Grant for Purchase of Vessels to the County of Finnmark and Nord-Troms ..................25
8.6   Support to Long-line Baiting Facilities ................................................................................2 6
8.7  Research Fishery ......................................................................................................... ...........27
9. ASSISTANCE TO FORE STRY SECT OR .........................................................................28
9.1 Tax Concessions in Forestry: The Forest Trust Fund and the 5-year Average
Tax Assessment ................................................................................................................ ......28
9.2 Subsidies for Forest Management Planning ........................................................................299.3 Subsidies for Afforestation and Silviculture ........................................................................30
9.4 Subsidies for Construction of Forest Roads ........................................................................31
9.5 National grant for environmental consideration when harvesting of round wood
in difficult  terrain .......................................................................................................... .........32
9.6 Subsidies for Round Wood Sale and Transport in Forestry ..............................................339.7 Subsidy for manual Thinning ...............................................................................................3 5G/SCM/N/95/NOR
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1. INTRODUCTION
This report covers state aid programmes and schemes that were in operation in 2002.  The
amount of subsidies reported, refer to actual payments in the fiscal year 2002.
The Norwegian legislation, under which the funding has been granted, is consistent with the
legislation of the EU in this field.
2. ASSISTANCE TO RESEARCH AND DEVELOPMENT SCHEMES
2.1 Industrial R&D Contracts
1. The authority responsible for the subsidy
Administered by the Norwegian Industrial a nd Regional Development Fund (SND) on behalf
of the Ministry of Trade and Industry.
2. Legislation under which the subsidy is granted
The Annual State Budget approved by the Parliament.Guidelines for Public R&D Contracts and Industrial R&D Contracts, approved by the
Ministry of Trade and Industry 20 July 1999.
3. Policy objective of the subsidy
The purpose is to stimulate Industrial R&D (Product development) and building business
networks.
4. Form of subsidy
Grants.
5. To whom and how the subsidy is granted
The projects eligible is R&D co-operating projects between enterprises, e.g. a major customer
and a lesser subcontractor
Conditions applying from 1 April 1995
The grants are restricted to SMEs (max. 250 employees is one out of three criteria) as partners
in new business relations. Subsidy is granted to applied research and development projects. Maximum
aid intensity is 35 per cent of project costs. Projects containing basic industrial research and SMEs
may obtain an additional 10 percentage points.
Costs eligible for aid are: personnel costs, overhead, current costs, consultancy and equivalent
services and instrument and equipment. Only cost s directly related to the accomplishment of the
projects are eligible.
The condition is that the aid is necessary to start up and realise a project.G/SCM/N/95/NOR
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6. Amount of subsidy
Total payment in 2002 was NOK 59.0 million.
The average subsidy per project of new grants in 2002 was about NOK 0.96 million.
7. Duration of the subsidy
Starting date:  1 January 1994.  Duration has not been specified.
8. Trade effects of the subsidy
Support is granted to a variety of projects and sectors.  Statistical data showing the trade
effects of the subsidy are not available.
2.2 Public R&D Contracts
1. The authority responsible for the subsidy
The Ministry of Trade and Industry.  The Norwegian Industrial and Regional Development
Fund (SND) is responsible for the administration of this scheme.
2. Legislation under which the subsidy is granted
The Yearly State budget.Guidelines for Public R&D Contracts and Industrial R&D Contracts, approved by the
Ministry of Trade and Industry 20 July 1999.
3. Policy objective of the subsidy
Reinforce the capabilities of Norwegian industries to satisfy the needs of public entities.Improve the quality and effectiveness of services supplied by public entities by implementing
new and improved technology.
4. Form of subsidy
Grants.
5. To whom and how the subsidy is granted
A Public R&D Contract is an agreement between a Norwegian enterprise and a public
authority that asks for the development of a new product or process. The receiver of the subsidy is the
producer. The project must represent something substantially new.
The bulk of the projects will typically be within the stage of basic industrial research and/or
applied research.
Conditions applying from 1 April 1995
Costs eligible for aid are:  Personnel costs, overhead, current costs, consultancy and
equivalent services and instrument and equipment. Only costs directly related to the accomplishment
of the projects are eligible. Maximum aid intensity:  35 per cent of project costs. SMEs (max. 250G/SCM/N/95/NOR
Page 5
employees is one of three criteria) and projects with basic industrial research may obtain an additional
10 percentage points.
6. Amount of subsidy
Total payment in 2002 was NOK 98.3 million'.1
The average subsidy per project of new grants in 2002 was about NOK 1.06 million.
7. Duration of the subsidy
Starting date:  1968. Duration has not been specified.
8. Trade effects of the subsidy
Statistical data making an assessment of the trade effects of the subsidy is not available.
2.3 Industrial R&D programmes and projects
1. Title of the subsidy programme
Industrial R&D programmes.
2. Period covered by the notification
Starting date:  1 January 1994. Duration of the notification has not been specified. The
individual programmes inside the subsidy not ification (the Industrial R&D programmes) have
however a shorter period, mostly 8-10 years (some also shorter)
3. Policy objective and/or purpose of the subsidy
Main objective is to promote innovation an d wealth creation in business and industry by
encouraging and support R&D activities leading to:
/g113 international competitiveness and sustainable business and industry based on
knowledge, expertise, network and learning.
/g113 industrial R&D efforts emphasising long-term socio-economic efficiency
/g113 an increase in number of enterprises that take a systematic approach to research and
development.
/g113 collaboration and networking.
4. Background and authority for the subsidy
Administered by the Research Council of Norway (RCN). RCNs funds comes from:
• the Ministry of Trade and Industry
• the Ministry of Petroleum  and energy
• the Ministry of Fisheries
• the Ministry of Agriculture
• the Ministry of Local Government and Regional Development
• the Ministry of Transport and Communication
                                                     
1 The total payment includes the FUNK Technical aids for disabled, which constitute a small part.G/SCM/N/95/NOR
Page 6
Funds from each ministry come from the State Budget, which is approved by the Norwegian
Parliament by the end of every year.
New programmes have to be approved by the Ministry of Trade and Industry before they can
be started. Guidelines for the subsidy programmes as such has been approved by the Ministry of
Industry and energy and of the ESA-organisation according to the EU/EØS -agreement (ref. no: 93-
183).
5. Form of subsidy
Support is given as grants to individual units to whom RCN has a contract with.
6. To whom and how the subsidy is provided.
P&D-projects eligible are projects where the project includes co-operation between
enterprises (mostly more than one), and where R&D institutes in most cases also are included in this
co-operation . Most projects include more than 5 participants. The bulk of the projects are typically
mostly within the stage of basic industrial research and applied research.  Enterprises all over Norway
and from all Norwegian industry participate in projects.  SMEs are given priority by RCN. Where
private enterprises are contractors, maximum aid intensity is not allowed to exceed over 50 per cent of
the total project cost. Only costs directly related to the accomplishment of the R&D projects areeligible.
Costs eligible for aid are:
• personnel costs
• current costs
• consultancy and service costs.
In some projects instrument and equipment may also be included.
The condition for RCNs aid is that the R&D-contra ctors prove that they can put in other funds
than the funds from RCN (in form of funds from othe r sources or in form of own fund or as input of
own man-hours). The individual R&D-contractors may participate in more than one R&D project,
both as contractor and as subcontractors (participants).
7. Subsidy per unit
Total payment for the year 2002 was NOK 434.0 million. The average subsidy per project of
new grants for 2002 in 2002 (in all 200 projects) was NOK 502,000. For the total project period in all
the amount of subsidy was at least three to four times this figure.
8. Duration of the subsidy
Duration for RCNs every single current R&D-programme is now 8 to 10 years. Most
programmes are however newly started. RCNs prog rammes before 2002, have however a shorter
period, mostly 5 years. For the notification has none period been set.
9. Trade effects of the subsidy
Support is granted to a variety of projects, enterprises and sectors. Statistical data showing
trade effects of the subsidy are not available.G/SCM/N/95/NOR
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3. ASSISTANCE TO DISADVANTAGED REGIONS
3.1 Regional Development Grant (Ch. 2425)
1. The authority responsible for the subsidy
The Ministry of Local Government and Regional Development through the Norwegian
Industrial and Regional Development F und (SND) and 16 county municipalities.
2. The legislation under which it is granted
Act no 97 of July 1992.
Regulation of January 1999 on "Regional measures administered by the Norwegian Industrial
and Regional Development Fund and the county municipalities".
Regulation of January 2000 on Areas eligible for regional aid.
The Annual State budget
3. Policy objective of the subsidy
Regional aid; job creation, contribute to develop permanent and profitable business in areas with
special employment problems or a low level of economic activity.
4. Form of subsidy
Grants and loans.
5. To whom and how the subsidy is granted
Enterprises situated in the assisted areas. SMEs are given priority.The scheme is available for enterprises in all sector except primary production in agriculture,
forestry and fishery which receives current state aid, insurance, bank and finance, oil and gasexploration, public administration and public commercial enterprises.
Grant is provided to tangible investments. Th e grant covers costs eligible under the notion
"soft aid" (costs must meet one-off requirements for up-to-date knowledge in various fields or be
related to establishing network co-operation etc. and not to tangible investment) and R&D-projects.
The assisted area is divided in three zones. In zone A the general aid intensity is maximum 25
per cent of the investment costs and SMEs may obtai n in addition 5 percentage points. In zone B the
general aid intensity is maximum 20 per cent of the investment costs and SMEs may obtain in
addition 5 percentage points. In zone C the general aid intensity is 10 per cent and SMEs may obtainin addition 10 percentage points.
Grant falling under the notion "soft aid" must not exceed 50 per cent of the eligible costs in all
zones and is confined to SME (max. 250 employees is one of three criteria). Grant to R&D-projects is
in general limited to 30 per cent of the investment in zone A, B and C. SME may obtain in addition agrant of 10 percentage points.G/SCM/N/95/NOR
Page 8
6. Amount of subsidy
Total payment in 2002:  NOK 773.5 million
7. Duration of the subsidy
Starting date:  1987. Duration has not been specified.
8. Trade effects of the subsidy
Information on the trade effects of the scheme is not available.
3.2 Scheme for Restructuring Regions Dependent on a Single Industry
1. Authority responsible for the subsidy
The Ministry of Local Government and Regional Development. The scheme is administered
by local municipalities and the Norwegian I ndustrial and Regional development fund (SND).
2. Legislation under which it is granted
The Annual State budget (Ministry of local government and regional development)
chapter 552 post 56. Regulation of  H-5/99.
3. Policy objective
Restructuring and job creation in municipalities and regions who are dependent on a single
industry experiencing drastic structural and financial difficulties.
4. Form of the subsidy
Grants.
5. To whom and how the subsidy is paid
Available to enterprises in regions eligible for restructuring aid according to the existing
guidelines for the scheme.  The subsidy covers eligible costs under the notion of ‘soft aid’.
6. The amount of subsidy
Payments in NOK 72 million in 2002
7. Duration of the subsidy
Starting date 1987. Duration has not been specified.
8. Trade effects of the subsidy
Support is granted to a variety of projects and sectors. Statistical data showing the trade
effects of the subsidy are not available.G/SCM/N/95/NOR
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3.3 The Norwegian Corporation for Industrial Estates and Development (SIVA)
1. Authority responsible for the subsidy
The Ministry of Local Government and Regional Development
2. Legislation under which it is granted
The State Budget (Ministry of Local Govern ment and Regional Development, ch. 552.55).
Regulation on SIVA of 27.11.92.
3. Policy objective
Primary objective:SIVA offers infrastructural support by offering industrial real estate locations to small and
medium-sized enterprises.
Secondary objective:Increase knowledge-based entrepreneurship through co-operation, network building and
consulting.
4. Form of the subsidy
No direct grants to the enterprises.
5. To whom and how the subsidy is paid
SMEs (a maximum of 250 employees is one out of three criteria). Primarily manufacturing
industry located in assisted areas.
Grants cover costs eligible under the notion of «soft aid» (costs must meet one-off
requirements for up-to-date knowledge in various fiel ds or be related to establishing of network co-
operation etc;  no physical investments or operating aid).
6. The amount of subsidy
Budgeted to SIVA in 2002:  NOK 64 million.Number of projects assisted:  44
7. Duration of the subsidy
Starting date:  1992.Duration has not been specified.
8. Trade effects of the subsidy
Support is granted to a variety of projects and sectors. Statistical data showing the trade
effects of the subsidy are not available.G/SCM/N/95/NOR
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3.4 National Programmes for Regional Development
1. Authority responsible
Ministry of Local Government and Regional Development in most of the cases through the
Norwegian Research Council and the Norwegian Industrial and Regional Development Fund (SND).
2. Legislation under which it is granted
The yearly State budget and Circular H-11/95 fr om the Ministry of Local Government and
Regional Development.
3. Policy objective of the subsidy:
Regional. An important objective is to create new structures and ways of collaboration
between R&D centres and private SMEs. The overal l aim is to stimulate industrial innovation.
4. Form of the subsidy
Grants.
5. To whom and how the subsidy is paid
Mainly SME (max. 250 employees is one out of three criteria) in private sector located in
assisted areas. Most of the funds available are used to support R&D - infrastructure. Single enterprises
may not receive support from this scheme unless they are involved in a cooperation pluriannual
programme of broader national interest.
Other criteria for the subsidy to enterprises are as for «Regional Grants for the Development
of Business and Industry» administered by The Norwegian Industrial and Regional Development
Fund and the country municipalities.
6. Amount of subsidy
Payment in 2002:  NOK 54 million. (The major part to research institutes/centres located in
assisted areas.)
7. Duration of the subsidy
Starting date:  1986. Duration has not been specified.
8. Trade effects of the subsidy
Support is granted to a variety of projects and sectors. Statistical data showing the trade
effects of the subsidy are not available.G/SCM/N/95/NOR
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4. ASSISTANCE TO SMALL AND MEDIUM SIZED COMPANIES
4.1 Development Grants
1. The authority responsible for the subsidy
The Ministry of Trade and Industry through The Norwegian Industrial and Regional
Development Fund (SND).
2. Legislation under which the subsidy is granted
Act no 97of 3 July 1992 on SND.Letter from the Ministry of Industry and Energy to the SND of 21 February 1995 -
”Retningslinjer for Statens nærings- og distriktsutviklingsfonds landsdekkende virkemidler”.
(New:  Guidelines for the Development Grant, approved by the Ministry of Trade and
Industry 20 October 2000.)
The Annual State budget.
3. Policy objective of the subsidy
To give assistance to SME, and to improve the efficiency of the industry.
4. Form of subsidy
Grant.
5. To whom and how the subsidy is granted
The scheme is primarily intended for SME. It is  available for all sectors except for insurance,
banking and finance, shipping, oil and gas exploration, public administration and public sector
commercial enterprises.
Conditions applying from 1 April 1995
Subsidy allowed to SMEs (max. 250 employees in one out of three criteria):- Maximum 50 per cent of costs eligible under the notion of "soft aid" (costs must meet
one-off requirements of up-to-date knowledge in various fields or be relied toestablishing of network co-operation etc ., no physical investment, no operating aid);
- Maximum 35 per cent of costs eligible for applied research and development projects;
- Maximum 7.5 per cent to physical investment (maximum 15 per cent to small
enterprises).
Larger companies are only allowed a maximum aid intensity of 25 per cent to R&D projects
or subsidy up to ECU 50 thousand in respect of one defined category over a three years period.G/SCM/N/95/NOR
Page 12
6. Amount of subsidy
Total payment in 2002:  NOK 110.5 million.
7. Duration of the subsidy
Starting date:  1 January 1993. Duration has not been specified.
8. Trade effects of the subsidy
Support is granted to variety of projects and sect ors. Statistical data showing the trade effects
are not available.
4.2 The Public Advisory System
1. The authority responsible for the subsidy
The Norwegian Ministry of Trade and Industry.
The Scheme is administered by the following institutions:
- The National Institute of Technology (TI).
- The North Norwegian Institute of Technology and Innovation (VINN).
- Norwegian Design Counsel (ND).
- Euro Info Centres (EIC).
2. The legislation under which the subsidy is granted
Proposition to the Storting no 86 (1986-87).
Royal Decree of 19 February 1988.
Royal Decree of 22 April 1988.
The Annual State budget.
3. Policy objective of the subsidy
Transfer of competence and knowledge to SME’s.
4. Form of subsidy
Services free or partly free of charge.
5. To whom and how the subsidy is granted
TI and VINN provide SME’s with technical competence and knowledge. EIC gives
information about the internal Market within EU  and within the EEA-agreement to small and medium
sized companies in Norway. The institutions only subsidize services directed towards SME’s with less
than 100 employees and mainly with less than 20 employees. The legal maximum aid level to an
enterprise is 100 000 EURO over a 3-year period. The average level however is only
NOK 10 thousand.G/SCM/N/95/NOR
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6. Amount of subsidy
The grants given to the institutions in order to provide the services (all sectors) in 2002;
- The National Institute of Technology (TI):  NOK 26.5 million
- The North Norwegian Institute of Technology and Innovation (VINN):
NOK 22.3 million
- Norwegian Design Counsel (ND):  NOK 12 million
- Euro Info Centres (EIC):  NOK 3 million
7. Duration of the subsidy
The public advisory system was reorganised in 2001. Duration has not been specified.
8. Trade effects of the subsidy
Support is granted to a variety of projects and sectors. Statistical data showing the trade
effects of the subsidy are not available.
5. ASSISTANCE TO ENVIRONMENT
5.1 New name: Aid for development and knowledge and information on sustainable
production and consumption
1. The Authority responsible for the subsidy
Ministry of the Environment
2. The legislation under which the subsidy is granted
The annual State Budget (chapter 1400,73)
3. Policy objective of the subsidy
Promote information and capacity building for more sustainable production and consumption
patterns, including waste reduction and recycling.
4. Form of the subsidy
One-off investment grant to projects. Financial support is given to some companies.
5. To whom and how the subsidy is paid
Financial support to some companies takes all of the aid available.
6. Amount of the subsidy
Total payment in 2002 was NOK 38,425,000 (EUR 4,796,829.161)
7. Duration of the subsidy
Starting date:  1 January 1990. Duration has not been specified, but the subsidies get smaller
every year.G/SCM/N/95/NOR
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8. Trade effects of the subsidy
Support is granted to a few projects. Statistical data showing the trade effects of the subsidy is
not available.
5.2 Guarantee and Loan Facility to the Company Responsible for Hazardous Waste
1. The authority responsible for the subsidy
The Ministry of Environment through the Norwegian Industrial and Regional Development
Fund (SND). From 1 January 2000 the responsibilities under the scheme was transferred to the
Ministry of Trade and Industry
2. The legislation under which the subsidy is granted
Proposition to the Storting, No. 103 (1990-91).
3. Policy objective of the subsidy
To reduce the risk related to building and operating a plant for treating hazardous waste.
4. Form of the subsidy
Loan and loan guarantee.
5. To whom and how the subsidy is paid
These financial facilities can only be utilized by the company in question, namely, NOAH
Holding AS. The company is given a loan up to NOK 100 million and guarantee for up to 55 per cent,
or maximum NOK 250 million of the external loan s, to the company. The loan is granted on
commercial terms. The guarantee is free of charge. The actual guarantees have been granted/renewed
by the Parliament on an annual basis. No payments have been made under the guarantees. On
1 January 2002 the guarantee responsibility was NOK 141 million.
6. Amount of subsidy
Total amounts of loans in 1997 were NOK 31 million
Terms:  The guarantees have a grace period of 24 months. The interest rate equals the best
interest rate in the Norwegian Industrial and Regional Development Fund. The loan has a grace period
of 42 months. The interest rate is 6 months NIBOR + 1 percentage point.
7. Duration of the subsidy
Starting date:  1991.The duration of the loan facility and guarantee for loan facility are 20 years.
8. Trade effects of the subsidy
Statistical data showing the trade effects of the subsidy are not available.G/SCM/N/95/NOR
Page 15
5.3 The Energy Fund2
1. Authority responsible for the subsidy
The Ministry of Petroleum and Energy is responsible for the scheme.  Enova is responsible
for implementation and administration of the scheme.
2. Legislation under which the subsidy is granted
- Parliamentary decision of 5 April 2001 with provisions by the Ministry of Petroleum
and Energy of 21 December 2001.
- Energy Act of 29 June 1990 no. 50 with re gulations of 10 December 2001 nr. 1377.
3. Policy objective
The primary objective is energy saving and environmentally friendly energy production
(production from new renewable energy sources such as  wind, biomass, solar, etc., and central heating
based on new renewable energy sour ces, heat pumps and waste heat).
4. Form of the subsidy
Grant for projects in energy saving, renewable sources of energy, new energy technologies,
and information and education measures in the field of energy efficiency:
- Investment support for energy saving systems and promotion of renewable sources of
energy.
- Initial investment aid for new energy technologies.
- Support to information and education measures in the field of energy efficiency for the
industry, commercial and household sectors.
5. To whom and how the subsidy is paid
The scheme applies to all types of companies, all regions and all sectors.
6. Amount of subsidy
The budget in 2002 was NOK 279 million over th e State budget, to which can be added app.
NOK 200 million coming from a levy on the distribution tariffs.
7. Duration of the subsidy
The scheme came into force 01.01.02. It will remain in force as long as an agreement between
the Ministry of Petroleum and Energy and Enova exists. The current agreement period is 2002-2005.
The agreement will be revised and probably prolonged after the period 2002-2005. The agreement is
tied to goals stated by the Storting (the Parliament) aiming at 2010.
                                                     
2 The schemes "Grant programme for introduction of new energy technology" (former chapter 5.7) and
"Information and education measures in the field of energy efficiency" were from 1 January 2002 merged undera new scheme called "The Energy Fund". The activities of the two schemes will continue under the new scheme.G/SCM/N/95/NOR
Page 16
8. Trade effects of the subsidy
Support is granted to a variety of projects and sectors. Statistical information of the trade
effects are not available.
5.4 Norwegian Environmental Fund
1. Authority responsible for the subsidy
The Ministry of the Environment. The subsidy is administered by The Norwegian Industrial
and Regional Fund.
2. Legislation under which the subsidy is granted
The annual state budget (chapter 2422, 90)
3. Policy objective
The Norwegian Environmental Fund (SMF) is a po litical environmental tool. It is a new loan
scheme in SND. The purpose is to stimulate companies to invest in or develop more environmental
friendly technology, in order to reduce emissions of greenhouse gases and other (environmentally)
harmful emissions. The fund is closed, and the last payment is due in 2003.
4. Form of the subsidy
The scheme has granted loans with subsidized in terest rate for some of the projects (until
April 2004).
5. To whom and how the subsidy is paid
SMF was supposed to finance projects that may not receive proper financing in commercial
banks due to high risk or marginal project profitability. That is; implementing technology that reduces
emissions may often not be a profitable/economically sound investment for a company, – or at least
not until the government impose penalties for not complying with new regulations. On the other hand,
if a company can use less power or more environment friendly types of raw materials, the investmentmay be very economically sensible. The interest rate for the first granted loans was well under
commercial lending rates.
The loan scheme has been applied in the whole of Norway and Svalbard, both on- and
offshore as well as on ships.
Both public and private sector businesses could apply.
6. Amount of subsidy
Interest rate subsidies in 2002:  MNOK 0.8 (EUR 99 868,92203). (Average outstanding loans
2002: MNOK 153.4) (EUR 19,149,865.8)G/SCM/N/95/NOR
Page 17
6. ASSISTANCE TO EXPORT PROMOTION
6.1 The Programme for Export Development in Small and Medium-sized Enterprises
(SMEs) (Renamed to Entrep reneur Programme in 1.2.2002).
1. The Authority responsible for the subsidy
The Ministry of Trade and Industry, through the Norwegian Trade Council.
2. Legislation under which the subsidy is granted
Government Decree on the Statutes for the Norwegian Trade Council.
The Annual State budget.
Specific guidelines for The Programme for Export Development in SME.
3. Policy objective of the subsidy
Business development and export promotion of SME, with focus on small, highly knowledge-
and technology based entrepreneurial enterprises with high export potential.
4. Form of subsidy
The Programme for Export Development in SMEs is granted to enhance the competitiveness
of Norwegian business towards foreign markets. The Programme comprises reduced prices for theservices of the Trade Council. 
5. To whom and how the subsidy is granted
The subsidy is granted to small, highly knowledge- and technology based entrepreneurial
enterprises with high export potential. With small enterprises it here means up to 100 employees.
Covers partly costs incurred by the companies for services obtained from the Norwegian
Trade Council in connection with market research, surveys, seminars and training et cetera, as a part
of the Programme. 
6. Amount of subsidy
Amount of subsidy in 2002:  The Programme for Export Development in SMEs:
NOK 12 million.
7. Duration of the subsidy
Starting date:  1.2.2002. Duration has not been specified.
8. Trade effects of the subsidy
Support is granted to a variety of projects and firms. Statistical data showing the trade effects
of the subsidy are not available.
6.2 Export Credit Financing Scheme
1. The Authority responsible for the subsidy
The Ministry of Trade and Industry through Eksportfinans ASA.G/SCM/N/95/NOR
Page 18
2. Legislation under which the subsidy is granted
The Annual State budget.
3. Policy objective and/or purpose of the subsidy
To promote Norwegian exports of goods and services by offering officially supported export
credits in accordance with the OECD “Arrangement on Guidelines  for Officially Supported Export
Credits” (hereinafter called “the OECD Arrangement”).
4. Form of subsidy
Interest rate support and currency risk alleviation.
5. To whom and how the subsidy is paid
The receivers of the officially supported export credits are the foreign purchasers of
Norwegian capital goods. Export credits are offered at interest rates set according to the OECD
Arrangement.
6. Amount of subsidy
The net accumulated amount of subsidy for the year 2002 is NOK 43.6 million. The service
sector is included. This amount represents the net subsidies required for the portfolio of credit and
funding resulting from all transactions for the scheme up to and including 2002.
7. Duration of the subsidy
Starting date:  1978. The duration of the subsidy has not been decided.
8. Trade effects of the subsidy
Financing is granted to a variety of projects and sectors. Statistical data showing the trade
effects are not available.
6.3 Export Credit Guarantees
1. The Authority responsible for the subsidy
Ministry of Trade and Industry through Guarantee Institute for export Credits (GIEK). GIEK
has, however, a high degree of independence.
2. Legislation under which the subsidy is granted
Regulations of 14 February 1994
The yearly State Budget and revised budget
3. Policy objective of the subsidy
To promote Norwegian exports of goods and services by covering the exporters commercial
and political credit risk.G/SCM/N/95/NOR
Page 19
4. Form of the subsidy
Guarantees.
5. To whom and how the subsidy is paid
Available to Norwegian enterprises and banks financing export contracts.The conditions are in accordance with the rules of the OECD “Arrangements on Guidelines
for officially Supported Export Credit” and the “Berne Union Understanding”.
The financial aim is balance in the long term.
6. Amount of subsidy
GIEK does not pay out subsidies, only indemnification after defaults.
Non-commercial activities 2002
Indemnification: 83.168
Recoveries: 44.226
Net indemnified: 38.942Premiums:            109.084
7. Duration of the subsidy
GIEK was established in 1929. The duration of the scheme has not been decided.
8. Trade effects of the subsidy
Support is granted to a variety of projects and sectors. Statistical data showing the trade
effects are not available.
7. ASSISTANCE TO SPECIFIC INDUSTRY SECTORS
7.1 Contract Related Operating Aid
1. Authority responsible for the subsidy
The Ministry of Trade and Industry, through “Eksportfinans ASA”.
2. Legislation under which it is granted
Council Regulation No 1540/98 as adopted by the EEA Joint Committee decision
No 12/1999, and implemented in Norwegian law by Royal Decree No 7/99.
3. Policy objective of the subsidy
Support the ship building industry in Norway.
4. Form of the subsidy
Grants.G/SCM/N/95/NOR
Page 20
5. To whom and how the subsidy is paid
Under this scheme, contract related operating aid is calculated as a percentage of the contract
price of the ship. The subsidy rates are 9 per cent for new ships worth more than ECU 10 million and4.5 per cent for new ships of a value less than ECU 10 million and for conversions. The scheme
covers new ships greater than 100 gt and conversions greater than 1000 gt.
6. The amount of the subsidy
Total payment in 2002:  NOK 1149.8 million.
7. The duration of the subsidy
Starting date:  1 January 1990. The scheme replaced the scheme “Interest Rate Subsidies for
the Shipbuilding Industry – Long Term Financin g and Construction Loans”. The scheme expired on
1 January 2001 according to Council Regulation (EC) 1540/98.
8. Trade effects of the subsidy
It is assumed that the subsidy scheme has corrected for the competitive distortions Norwegian
yards have faced compared to foreign yards, which also have been receiving subsidies in accordance
with national subsidy arrangements.
7.2 Exemption from/reduction of SO2 and CO2 taxes
1. Authority responsible for the subsidy
The Royal Ministry of Finance and Customs.
2. Legislation under which the subsidy is granted
The CO2 and SO2 tax rates and the tax concessions are decided by the Parliament during the
annual budget process
3. Policy objective of the subsidy
The CO2 taxes were introduced 1 January 1991 and are high compared to similar taxes that
have been established or proposed in other countries. The above-mentioned tax concessions have been
carried through to avoid an undesirable worsening of the concerned companies’ competitive power.
4. Form of the subsidy
Tax concession.
5. To whom and how the subsidy is granted
Tax concessions for the paper and pulp industry, the fish flour industry and the cement and leca
industry.
(a) Mineral oil
Main rules :  An excise duty is levied on mineral oil. It consists of a CO 2 tax per litre and a
SO 2 tax per 0.25 per cent sulphur content and per litre. Oil with lower sulphur content than 0.05 perG/SCM/N/95/NOR
Page 21
cent is exempt from the SO 2 tax. In 2002 the CO 2 tax rate was NOK 0.49 and the SO 2 tax rate was
NOK 0.07. In 2003 the CO 2 tax rate is NOK 0.50 and the SO 2 tax rate is NOK 0.07.
Tax concession :  The paper and pulp industry CO 2 tax reduced to 50 per cent of the tax rate
defined as the main rule (i.e. NOK 0.25 per litre in 2003). The supply fleet in the North Sea, nationalair transport, coastal goods transport are liable to a CO
2 tax at NOK 0.29 in 2003 (The CO 2 tax base
was expanded to cover these activities in 1999.)
International shipping and air transport are not liable to the CO 2-tax on mineral oil. Some
sectors outside the scope of the EEA Agreement also pay reduced rates.3
(b) Coal and coke
Coal and coke:Main rules :  A CO
2 tax was levied on coal and coke for energy purposes. The tax rate in 2002
was NOK 0.49 per kilogram. The tax is abolished for 2003.
Tax concessions :  Coal and coke used for production of cement and leca are exempt from the
CO2-tax.
6. The amount of subsidy
Revenue losses in 2002:
Mineral oil:
The paper and pulp industry:  NOK 39 million
The fish flour industry:  NOK 13 million
Coal and coke:Production of cement and leca:  NOK 84 million
7. Duration of the subsidy
Starting date:
(a) Reduced Coal and Coke tax:  1 July 1992.
(b) Reduced Mineral Oil tax:  1 January 1993
Duration has not been specified for the tax concession on mineral oil. The tax on coal and coke
for energy purposes was abolished for 2003 and accordingly also the connected tax concession.
8. Trade effects of the subsidy
The trade effects of the tax concessions have not been evaluated.
                                                     
3 Among others, the fishflour industryG/SCM/N/95/NOR
Page 22
7.3 Press subsidies
1. Title of subsidy programme
The Press Grant Scheme.
2. Period covered by the notification
The year 2002.
3. Policy objective/purpose of the subsidy
To promote and maintain a diversified press.
4. Background and authority for the subsidy
The subsidy was introduced in 1969 by a parliamentary decision.
Present legislation:  Royal Decree of 7 November 1996 and amendments.
5. Form of the subsidy
Grants.
6. To whom and how is the subsidy provided
The size of the grant is calculated on the basis of the individual newspaper’s per annum
circulation. Newspapers with three or more issues  per week with an aver age circulation between
2,000 and 6,000 copies can apply for grants. In addition, grants are given to newspapers in anunfavourable market position and with an average circulation of up to 80,000 copies. From 1989,
local newspapers with one issue per week and a circulation of at least 1,000 copies were included in
the grant scheme.
7. Subsidy per unit
The average amount of subsidy received by the newspapers which were granted support was
NOK 1,817,829 (the total amount of subsidy granted was NOK 234,500,000, and 129 newspapers
were given support). However, there is a high level of variation between the newspapers in the level
of support.
8. Duration of the subsidy
Indefinite – the duration of the scheme has not been specified.
9. Assessment of the trade effects of the subsidy
The subsidy is assumed to have no trade effects due to the low level of export/import of
newspapers.G/SCM/N/95/NOR
Page 23
8 ASSISTANCE TO THE FISHERY SECTOR
8.1 Transport Support
1. The authority responsible for the subsidy
The Ministry of Fisheries.
2.  Legislation under which the subsidy is granted
The subsidy is given in accordance to the year ly agreement between the Government and the
Norwegian Fishermen’s Association.
3. Policy Objective and/or purpose of the subsidy
The purpose is to support transport in order to facilitate implementations of fisheries activities
in specific regions.
4. Form of the subsidy
Grant.
5. To whom and how the subsidy is granted
The transport support is given to the following sales organisations:- Norway's Raw Fi sh Organisation
- Fish Sales Association for Sunnmøre og Romsdal- Fish Sales Association for Western Norway
- Fish Sales Association for Rogaland County
- Fish Sales Organisation for the Skagerrak Coast
- Norway's Herring Sales Association
The sales organisations are responsible for the distribution of the transport support to the
fishing industry. Each sales organisation must subm it a plan showing how they intend to apply these
funds so that fishing activities are secured throughout the year.
The subsidy does not include the fish farming industry.
6. Amount of subsidy
Total payment in 2002:  NOK 26.4 million.
7. Duration of the subsidy
The subsidy is given in accordance with  the 1964-Agreement between the Norwegian
Fishermen's Association and the Ministry of Government Administration. Duration has not been
specified.
8. Trade effects of the subsidy
Statistical data showing the trade effects of the subsidy are not available.G/SCM/N/95/NOR
Page 24
8.2 Support for Specific Fisheries
The scheme is no longer in effect.
8.3 Interest Rate Subsidies for Fishing Vessels for Domestic Deliveries
1. Authority responsible for the subsidy
The Ministry of Trade and Industry through the National Industry and Regional Development
Fund.
2. Legislation under which the subsidy is granted
Proposition to the Storting no 73 (1984-1985).
3. Policy objective of the subsidy
Modernisation of fishing vessels.
4. Form of the subsidy
Interest rate subsidy and construction loan subsidy.
5. To whom and how the subsidy is granted
For the ship owners:
An interest rate subsidy was calculated on basis of a hypothetical loan of 5 years, or a real loan
of 5 to 12 years, repaid by even half-yearly instalments.
For the yards:A construction loan subsidy was calculated as a percentage of the contract price of the ship.
6. Amount of subsidy
Total amount of interest subsidies in 2002; NOK 93,532,-
No aid was paid out as construction loan subsidies in 2002.
7. Duration of the subsidy
Interest rate subsidy:  Phased out in 1986. Some remaining payments left.
Construction loan subsidy:  18 April 1986 - 31 December 1989.
8. Trade effects of the subsidy
It is assumed that the subsidy scheme has corrected for the competitive distortions Norwegian
yards have faced compared to foreign yards, which also have been receiving subsidies in accordance
with national subsidy arrangements.G/SCM/N/95/NOR
Page 25
8.4 Support to the Modernisation and Capacity Adjustment of the Fishing Fleet; Contract
Subsidies and Decommissioning Grant
1. Authority responsible for the subsidy
The Ministry of Fisheries through the National Industry and Regional Development Fund.
2. Legislation under which the subsidy is granted
Proposition to the Storting no 1 (2001-2002) and the yearly agreement between the
Government and the Norwegian Fishermen’s Association for 2002. The annual decommissioning
scheme for 2002 was regulated by Regulations of 16 May 2002 for decommissioning of fishing
vessels.
3. Policy objective of the subsidy
Modernisation of fishing vessels in combination with fleet reduction. The previous programme
that was a combined scheme for decommissioning and contracting is no longer in effect. Solely thedecommissioning scheme was available in 2002.
4. Form of the subsidy
Decommissioning grant.
5. To whom and how the subsidy is granted
The decommissioning grant is given directly to the ship owner.
6. Amount of subsidy
Grants to decommissioning in 2002:  NOK 20.4 million
7. Duration of the subsidy
16 May to 31 December 2002.
8. Trade effects of the subsidy
Statistical data showing the trade effects of the subsidy are not available.
8.5   Grant for Purchase of Vessels to the County of Finnmark and Nord-Troms
1. The authority responsible for the subsidy
The Ministry of Fisheries, the Ministry of Local Government and Regional Development, and
the Norwegian Industry and Regional Development Fund.
2.  Legislation under which the subsidy is granted
The state budget 2002.
3. Policy Objective of the subsidy
Regional development.G/SCM/N/95/NOR
Page 26
4. Form of the subsidy
District grant.
5. To whom and how the subsidy is granted
The subsidy is paid to buyers of used fishing vessels (up to ten years) to the County of
Finnmark and to Nord-Troms.
6. Amount of subsidy
No aid was paid in 2002.From 1997 to 2000 only 5 projects were given aid through this scheme. In the same period a
total of NOK 4.4 million was paid out, i.e. the scheme is not much used.
7. Duration of the subsidy
Duration has not been specified.
8. Trade effects of the subsidy
Only limited funds have been paid out to this scheme, so trade effects are virtually non-
existing.
8.6   Support to Long-line Baiting Facilities
1. The authority responsible for the subsidy
The Ministry of Fisheries.
2.  Legislation under which the subsidy is granted
The subsidy is given in accordance to the year ly agreement between the Government and the
Norwegian Fishermen’s Association.
3. Policy Objective of the subsidy
Structural support to the fisheries sector in certain regions.
4. Form of the subsidy
Grant per 100 baited hooks.
5. To whom and how the subsidy is granted
The subsidy is given to members of organised long-line baiting facilities. In 2002 the support
was limited to NOK 11 per 100 baited hooks.
6. Amount of subsidy:
Total payment in 2002:  NOK 12.11 million.G/SCM/N/95/NOR
Page 27
7. Duration of the subsidy
The subsidy is given in accordance with  the 1964-Agreement between the Norwegian
Fishermen's Association and the Ministry of Government Administration. Duration has not beenspecified.
8. Trade effects of the subsidy
The support is aimed at a specific fishery and will most likely have limited trade effects.
8.7  Research Fishery
1. The authority responsible for the subsidy
The Ministry of Fisheries.
2.  Legislation under which the subsidy is granted
A part of the yearly agreement between the Government and the Norwegian Fishermen’s
Association. (In 1997 the aid was granted through the ordinary budget of the Ministry of Fisheries).
3. Policy Objective of the subsidy
Primary objective is research in fisheries. Secondary object is the development of fishing gear
of better selective characteristics.
4. Form of the subsidy
Grant.
5. To whom and how the subsidy is granted
The fishing fleet and research institutions can apply for subsidies.
6. Amount of subsidy
Total payment in 2002:  NOK 2.6 million.
7. Duration of the subsidy
The subsidy is given in accordance with  the 1964-Agreement between the Norwegian
Fishermen's Association and the Ministry of Government Administration. Duration has not been
specified.
8. Trade effects of the subsidy
Limited means make the trade effects very small if at all existing.G/SCM/N/95/NOR
Page 28
9. ASSISTANCE TO FORESTRY SECTOR
9.1 Tax Concessions in Forestry: The Forest Trust Fund and the 5-year Average Tax
Assessment
1. The authority responsible for the subsidy
The Ministry of Agriculture through the County National Forest Service and the Ministry of
Finance.
2. Legislation under which the subsidy is granted
Both tax assessment schemes have reference to the Property and Income Tax Act, no 8 of
18 August 1911, Section 48, administered by the Ministry of Finance.
The Forest Trust Fund policy has in addition references to the Forestry Act of 1965 with
amendments, latest by the Act no 96 of 11 June 1993, and the following regulations; “Regulation on
tax advantages by using the Forest Trust Fund for certain purposes” of 23 August 1983. “Regulation
on payment in to the Forest Trust Fund” of 18 February 1994. “Regulation on the use of the ForestTrust Fund” of 20 April 1994. “Regulation on the Forest Trust Fund for 2002” of 19 December 2001.
3. Policy objective of the subsidy
To influence resource utilisation. Due to the particular circumstances in the forestry trade,
forest owner tax adjustments are made to promote long-range forestry investments.
4. Form of the subsidy
Tax concessions.
5. To whom and how the subsidy is granted
Forestry activities are in principle being taxed as other economical activities, either as a
separate income source or in combination with othe r income activities that the forest owner may have.
The Norwegian forest owner may however ma ke use of two special tax assessments.
The Forest Trust Fund is a mandatory forest investment scheme to encourage long-range
private investments in forestry based on sustainable utilisation of the forest resources. The Forestry
Act requires all forest owners to place into the F und from 8 to 25 per cent of the gross sale value of
the round wood. At the time of sale, the buyer automatically deducts a pre-decided percentage from
the sale receipts. This amount is deposited in the forest owner trust fund account at his local bank. Themoney may be used for specified forestry investments.
Long-range forest investments may be fully wr itten off and deducted on the income tax return
the year the investment is made. The amount disbur sed from the Fund Account for this investment is
considered as taxable income the year the disbursement is made. However, only a certain percentageof the investment is considered as taxable income, depending on the size of the investment made;
varying from 65 per cent for investments up to NOK 50 thousand, to 95 per cent for investments
exceeding NOK 500 thousand. From 2003 the Forest Trust Fund regulation has been changed. The
forest owner may now place into the Fund from 4 to 40 per cent of the gross sale value. The
percentage of the investment considered as taxable income is now 40 per cent independent of the sizeof the investment.G/SCM/N/95/NOR
Page 29
Larger investments may require several years of accumulation on the Fund Account prior to
making the investment. This entails that the forest owner receives an interest free tax credit.
The forest owner does not receive any intere st made on the trust fund. According to the
Forestry Act, the interest will be used for the benefit of Norwegian forestry at municipal – county - ornational levels.
Average tax assessment. The yearly income tax for the forest owner is based on the last 5
years average income. The system implies that it is not necessary to obtain equal yearly incomes to
eliminate the consequences of the progressive taxation. It entails that the marginal tax percentage may
be reduced compared to other income groups, where the single last year income is the basis for
taxation. The method implies that the forest owner receives a two-year tax credit.
6. Amount of subsidy
The Forest Trust Fund:  In 2002, the amount disbursed on a national basis from the Forest
Trust Fund Accounts to investment eligible for tax advantages totalled NOK 141 million. The non-taxable amount involved totalled NOK 46 million, involving 13 thousand forest owners. However, the
subsidy has not been calculated for each owne r due to the individual tax rates involved.
Average 5-year tax assessment:  The total non-taxable amount (tax assessment subsidies) for
2002 is estimated to NOK 15 to 20 million (approx. 25 thousand forest owners)
7. Duration of the subsidy
The Forest Trust Fund was initiated in 1932, but established at its present system in 1965.
8. Trade effects of the subsidy
Statistical data to make an assessment of the trade effects of the subsidy is not available.
9.2 Subsidies for Forest Management Planning
1. The authority responsible for the subsidy
The Ministry of Agriculture through the County National Forest Service.
2. Legislation under which the subsidy is granted
“Regulation on subsidies for forest management planning” of 22 April 1994. Funded by the
Agricultural Development Fund (LUF) within the Agricultural Agreement.
3. Policy objective of the subsidy
To stimulate forest management planning as a basic measure to promote sustainable forestry
while including:
- Active short and long terms economic trade utilisation of the forest resources.
- Compliance and development of all functions of the forest related to biological
diversity, landscape, cultural inheritance and recreational activities.
4. Form of the subsidy
Grants.G/SCM/N/95/NOR
Page 30
5. To whom and how the subsidy is granted
The subsidy is available to all owner categories and all types of operational forestland.
Provided a given area coverage of pre-ordered individual forest management plans, the grant coversresource registration surveys of larger designated areas and preparation of individual forest
management plans on the individual properties. Area registrations provide forest inventory and
resource summaries. The programme supports training on how to apply the forest management plan.
The subsidy rates are decided by the County Governor and are based on the total resource
registration and plan preparation cost. The rate varies depending on registration method and
individual forest ownership sizes. Priorities are given to smaller properties participating in jointmunicipality surveys.
Area registrations may under certain circumstances be subsidised with 100 per cent of the
cost, while the rates for preparing individual forest management plan varies considerably between the
regions. Normally, subsidies are not granted to properties that have received payments from thissubsidy programme within the last 10-year period.
6. Amount of subsidy
The total support expenditures for 2000 were NOK 41.6 million.On an average, the subsidies per hectare of prepared forest management plans amounted to
about NOK 80, including about 2,900 individual forest properties.
7. Duration of the subsidy
Starting date:  1971. Duration has not been specified.
8. Trade effects of the subsidy
Statistical data to make assessments of the trade effects of the subsidy is not available.
9.3 Subsidies for Afforestation and Silviculture
1. The authority responsible for the subsidy
The Ministry of Agriculture through the County National Forest Service.
2. Legislation under which the subsidy is granted
“Regulation on Subsidies on Afforestation and Silviculture” of 16 May 1994, in accordance
with the Forestry Act of 1965.
Measures under the scheme are mainly funded in the Annual State Budged but a single
measure is under the Agricultural Development Fund (LUF) within the Agricultural Agreement,
administered by the Ministry of Agriculture.
3. Policy objective of the subsidy
To stimulate to the establishment and the composition of quality forests at the same time as
the environmental values related to biological diversity, landscape cultural inheritance and
recreational activities are attended to and further developed.G/SCM/N/95/NOR
Page 31
4. Form of the subsidy
Grants.
5. To whom and how the subsidy is granted
The grant is eligible throughout the country, but priority is given to Northern Norway,
Western Norway and the mountainous regions to build up quality forests in non-forested areas and
secure district employment. All forest owner categories are eligible. Only properties exceeding 1.0
hectare of productive forestland are eligible. Both natural- and plantation forests are included.
The grant is given either as a percentage of the total verified costs or as a per hectare subsidy.
The grant may include; Afforestation and regeneration (site preparation, planting, seeding, fencing,
fertilisation etc.), Supplementary work and maintenance of young forest (planting and seeding,
clearing and pre-commercial thinning, quality delimbing, decay protection, drainage maintenance),
Planning and administration works. The subsidy rates are stipulated by the County Governor, basedon regional, advisory guidelines established by the Ministry of Agriculture, and differ according to the
regions involved and type of work included.
Conditional requirements; socially economically beneficial, accomplished according to
professional and environmental standards, mini mum treatment area of 0.2 hectares, follow-up of
future maintenance work according to governmental standards. If control measures reveal that the
conditional requirements are not met, the grant including interest must be repaid.
6. Amount of subsidy
The total support expenditures for 2002 was NOK 59 million.Afforestation support in 2002 averaged 26.7 pe r cent for the entire country, varying between
0 and 70 per cent. Site preparation was on an average subsidised by NOK 524 per hectare.
Supplementary work and maintenance of young forest (clearing and pre-commercial thinning) were
on the average subsidised by NOK 748 per hectare.
7. Duration of the subsidy
Starting date:  1931. Duration:  The grant has been phased out of State Budget from 2003.
8. Trade effects of the subsidy
Statistical data making assessments of the trade effects of the subsidy is not available.
9.4 Subsidies for Construction of Forest Roads
1. Authority responsible for the subsidy
The Ministry of Agriculture through the County National Forest Service.
2. Legislation under which the subsidy is granted
“Regulation on Subsidies for Construction of Forest Roads” of 28 June 1994 and
“Regulations on Planning and Approval of Roads for Agricultural purposes” of 20 December 1996, in
accordance with the Forestry Act of 1965 with amendments.G/SCM/N/95/NOR
Page 32
Major funding through the Agricultural Development Fund (LUF) within the Agricultural
Agreement.
3. Policy objective of the subsidy
To encourage construction and reconstruction of forest roads for transport of round wood
from the forest, to ease the access and provide possibilities for rational forest management and
operation of forestland. Priority is given to regions with low income. The forest road density on
productive woodland in Norway is still inadequate and varies considerably between the regions.
4. Form of the subsidy
Grants.
5. To whom and how the subsidy is granted
All forest owners are eligible for grants on land where forestry may be economically
operated. Priority is given to the Northern, Western and the mountainous regions.
Grants may be offered for new construction of forest truck- and tractor roads and for
reconstruction of existing roads into higher road standards.
The support is calculated as a percentage of the total verified costs. The applied rates vary
according to the established priorities. The maximum grant rates are; Northern Norway:  75 per cent,
Western Norway and mountainous districts:  60 per cent.  Typical forestry regions:  40 per cent.
The forest road must be planned and built according to road standards set by the Ministry of
Agriculture. Financial programme and project de scription including environmental standards as
outlined by the Ministry must be included. Additional requirements include; approved bookkeeping
procedures, future maintenance routines, free road use by officials from the Ministries of Environment
and Agriculture, sustainable harvesting and reforestation of woodland tributary to the road system.
If control measures reveal that the conditional requirements are not met, the National Forest
Service may claim grant repayment including interest.
6. Amount of subsidy
The total support expenditures for 2002 amounted to NOK 62.2 million. The average annual
subsidy to the individual forest owner involved in  a road project amounts to about NOK 25 thousand.
7. Duration of the subsidy
Starting date 1961. Duration has not been specified.
8. Trade effects of the subsidy
Statistical data making assessments of the trade effects of the subsidy is not available.
9.5 National grant for environmental consideration when harvesting of round wood in
difficult terrain
1. The authority responsible for the subsidy
The Ministry of Agriculture through the County National Forest Service.G/SCM/N/95/NOR
Page 33
2. Legislation under which the subsidy is granted
The funding is through the Agricultural Development Fund (LUF) within the Agricultural
Agreement, administered by the Ministry of Agri culture through the County National Forest Service.
3. Policy objective of the subsidy
To promote harvesting methods with environmental advantages in steep and difficult terrain.
4. Form of the subsidy
Grants.
5. To whom and how the subsidy is granted
All private, community or state forests are eligible.About 25 per cent of the productive forest area in Norway are classified as steep and difficult
terrain. About one half of this area is further specified as extremely difficult, where the harvesting of
round wood depends on the use of cable cranes or other work intensive methods. Harvesting with
cable systems in this areas is given a grant up to an amount of NOK 90 per cubic metre. The averagesubsidy rate is stipulated to NOK 9 thousand per hectare in terrain where the cable operations
exceeding 150 metres. The individual County Governor stipulates if, and to what extent, funds may be
allocated to this scheme.
Certain conditional requirements related to forest management- and environmental procedures
must be met to be eligible for subsidy payments.
6. Amount of subsidy
The total support expenditures for 2002 amounted to NOK 6.5 million. The average subsidy
equals NOK 43 per cubic metre, corresponding to about 20 to 25 per cent of the harvesting costs. The
number of recipients (forest owners) receiving support is estimated to 900. Jobs created are estimatedto an equivalent of 110 man-years.
7. Duration of the subsidy
Starting date:  1976. The annual budget allocations have been gradually reduced as improved
harvesting methods have been introduced.
8. Trade effects of the subsidy
Statistical data making an assessment of the possible trade effects is not available.
9.6 Subsidies for Round Wood Sale and Transport in Forestry
1. The authority responsible for the subsidy
The Ministry of Agriculture through the County National Forest Service.G/SCM/N/95/NOR
Page 34
2. Legislation under which the subsidy is granted
“Regulation on subsidies for transport in forestry” of 11 November 1993. The scheme
funding is through the Annual State Budget (log-transport infrastructures) and the Agricultural
Development Fund (LUF) within the Agricultural Agreement (round wood sale improvements).
3. Policy objective of the subsidy
To increase the forest resources and the forest activities in Western and Northern Norway.
These regions are not able to provide adequate quantities of wood to enable a regional establishment
of major wood processing industries. Most round wood (especially the pulpwood) therefore must be
transported by truck/ferry prior to shipping with ocean freighters to the existing processing industries.
4. Form of the subsidy
Grants.
5. To whom and how the subsidy is granted
All round wood assortments are eligible for support, but the major part of the support relates
to the transport of pulp wood fro m Western Norway and the hardwood to the particle board industry
located in Northern Norway.
The grants may be given as:- In Western Norway; Investment support to  co-operative community log terminals and
quay structures for log shipments by boat.
- In Northern Norway; Unit transport support and support to general measures improving
round wood sale.
The transport is subsidised on the condition th at the grants should only cover parts of the
costs exceeding the “normal” national average. The assumption is that the grant shall neither distort
the competition between the purchasing industries nor have any negative influence on theestablishment of local industry or other local utilisation of wood. If control measures reveal that the
conditional requirements are not met, the National Forest Service may claim the grant payment
including interest to be repaid.
6. Amount of subsidy
The support expenditures for 2002 amounted to NOK 3.5 million, paid as unit support per
cubic metre transported, involving about 500 forest owners. The programme is estimated maintaining
about 60 man-years in the primary forest operation.
7. Duration of the subsidy
Starting date:  1976. The annual support has been de-escalated according to the policy
programme.
8. Trade effects of the subsidy
Statistical data making an assessment of the possible trade effects is not available.G/SCM/N/95/NOR
Page 35
9.7 Subsidy for manual Thinning
1. The authority responsible for the subsidy
The Ministry of Agriculture through the County National Forest Service.
2. Legislation under which the subsidy is granted
The funding is through the Agricultural Development Fund (LUF) within the Agricultural
Agreement, administered by the Ministry of Agri culture through the County National Forest Service.
3. Policy objective of the subsidy
Regional assistance:  Job creations and increased activity in rural regions through a
sustainable utilisation of the forest resources.
4. Form of the subsidy
Grants.
5. To whom and how the subsidy is granted
The grant is eligible throughout the country and all forest owner categories are eligible. The
individual County Gove rnor stipulates if, and to what extent, funds may be allocated to this scheme.
Only felling by power saw is eligible.
The maximum subsidy rate is stipulated to NOK 100 per cubic metre.
6. Amount of subsidy
The total support expenditures for 2002 amounted to NOK 3.6 million.
7. Duration of the subsidy
Starting date:  1985. Duration has not been specified.
8. Trade effects of the subsidy
Statistical data making an assessment of the possible trade effects is not available.
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