G/SCM/N/343/NOR  
 
5 July 2019  
(19-4498) Page: 1/21 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO ARTIC LE XVI:1 OF  
THE GATT 1994 AND ARTICL E 25 OF THE AGREEMEN T ON 
SUBSIDIES AND COUNTE RVAILING MEASURES  
NORWAY  
The following communication, dated  27 June 2019,  is being circulated at the request of the 
delegation of Norway . 
 
  _______________  
  G/SCM/N/343/NOR  
 
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  TABLE OF CONTENT S 
1 INTRODUCTION  ................................ ................................ ................................ ............  3 
2 ASSISTANCE TO RESEAR CH AND DEVELOPMENT S CHEMES  ................................ ...........  3 
2.1 The Bioenergy Scheme  ................................ ................................ ................................ ... 3 
3 ASSISTANCE TO DISADV ANTAGED REGIONS  ................................ ................................  3 
3.1 Regional transport aid ................................ ................................ ................................ .... 3 
3.2 Regional Risk Loans and guarantees  ................................ ................................ ................  4 
3.3 Regional Development Aid Scheme  ................................ ................................ ..................  5 
3.4 Aid scheme for economic development in Svalbard  ................................ ............................  6 
4 ASSISTANCE TO SPECIF IC INDUSTRY SECTORS  ................................ ............................  7 
4.1 The Press Grant Scheme  ................................ ................................ ................................  7 
4.2 The Innovation and Development Grant Scheme  ................................ ...............................  8 
4.3 National programmes for the promotion of Norwegian space industry  ................................ .. 9 
5 GENERAL MEASURES  ................................ ................................ ................................ ... 10 
5.1 Exemptions  and reduced rates in the CO2 taxes and in the tax on  
mineral oil (base tax on mineral oil)  ................................ ................................ ..................... 10 
6 ASSISTANCE TO THE FI SHERY SECTOR  ................................ ................................ ....... 12 
6.1 Transport Support  ................................ ................................ ................................ ........ 12 
6.2 Sealing  ................................ ................................ ................................ ........................ 13 
7 ASSISTANCE TO FOREST RY SECTOR  ................................ ................................ ............  13 
7.1 The Forest Trust Fund Scheme  ................................ ................................ ....................... 13 
7.2 The Timber Account  ................................ ................................ ................................ ......14 
7.3 Subsidies for Forest Management Planning  ................................ ................................ ......15 
7.4 Subsidies for industrial and environmental purposes in forestry  ................................ .......... 16 
7.5 Subsidies for Forest Infrastructure  ................................ ................................ .................. 17 
8 THE AGRICULTURAL SEC TOR ................................ ................................ .......................  17 
8.1 Introduction to subsidies on the expenditure side of the budget  ................................ ......... 17 
8.2 Information on the subsidy programs  ................................ ................................ .............. 17 
8.2.1  The milk sector ................................ ................................ ................................ .......... 18 
8.2.2  The meat and egg sectors  ................................ ................................ ........................... 18 
8.2.3 The grain sector  ................................ ................................ ................................ ........ 18 
8.2.4  Potatoes and horticultural products  ................................ ................................ .............. 18 
8.2.5  Headage support  ................................ ................................ ................................ .......18 
8.2.6  National environmental program  ................................ ................................ .................. 18 
8.2.7  Vacation and replacement  ................................ ................................ ........................... 19 
8.2.8  Market regulation  ................................ ................................ ................................ ......19 
8.3 Expenditures and market structure  ................................ ................................ ................. 19 
  G/SCM/N/343/NOR  
 
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  1  INTRODUCTION  
This repor t covers state aid programmes and schemes that were in operation in 2017 and 2018 . The 
amount of subsidies which are reported, refer to actual paymen ts in the fiscal years  2017 and 2018 . 
As regards the agricultural sector, the notification covers schemes i n force from 1  January 2016 and 
until 31 December 2017, as numbers for 2018 were not available at the time of writing.  
 
Through Norway's participation in the European Economic Area (EEA), Norwegian legislation, under 
which subsidies are granted, is consisten t with the legislation of the Eu ropean Union (EU) . However, 
agriculture and fisheries are not part of the EEA Agreement.  
 
2  ASSISTANCE TO RESEAR CH AND DEVELOPMENT S CHEMES  
2.1  The Bioenergy Scheme  
1. The authority responsible for the subsidy  
Administered by  Innovation Norway on behalf of the Ministry of Agriculture and Food.  
2. Legislation under which the subsidy is granted  
− The Annual Agricultural Agreement.  
− The Annual State Budget.  
3. Policy objective of the subsidy  
The objective of the scheme is to promote the p roduction and use of bioenergy as an environmentally 
friendly alternative to fossil energy.  
4. Form of the subsidy  
Grants.   
5. To whom and how the subsidy is provided  
The scheme applies to all types of companie s, all regions and all sectors.  
6. Amount of subsidy  
− 2017: NOK 70 million.  
− 2018: NOK 66 million.  
7. Duration of the subsidy  
The scheme was established in 2003, and the duration is dependent on annual allocations.  
8. Trade effects of the subsidy  
Statistical information indicating trade effects are not available.  
3  ASSISTANCE TO DISADV ANTAGED REGIONS  
3.1  Regional transport aid  
1. The authority responsible for the subsidy  
The Ministry of Local Government and Modernisation , the County Mun icipalities of Sør -Trøndelag, 
Nordland and Troms.   G/SCM/N/343/NOR  
 
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  2. Legislation under which the subsidy is  granted  
The Annual State Budget.  
Regulation on eligible areas for investment aid and transport aid (FOR -2014-06-17-807).1 
Regulation on regional aid funds (FOR -2013-12-11-1574)2 with guidelines .3 
3. Policy objective of the subsidy  
Stimulate economic growth in less developed areas by means of reducing the competitive 
disadvantages caused by long distances, difficult transport conditions and scattered population.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
The purpose of the scheme is to offset additional transport costs of firms located in the low population 
density areas of Norway. Additional transport costs are the extra costs occasioned by movements of 
goods within the borders of Norway. Under the scheme aid is granted in relation t o transport from 
places within the area of finished or semi -finished goods that have undergone significant processing 
within the eligible area.  The aid is granted ex -post on the basis of verifiable incurred transport costs.  
6. Amount of subsidy  
2017: NOK 8.55  million . 
2018: NOK 0 (no aid was granted) . 
7. Duration of the subsidy  
31.12.2020 . 
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
3.2  Regional Risk Loans and guarantees4 
1. The authority responsible for the subsidy  
Innovati on Norway on behalf of The Ministry of Local Government and Modernisation . 
2. Legislation under which the subsidy is granted  
− Act no. 130 of 19 December 2003.  
− Regulation on regional aid funds (FOR -2013-12-11-1574)5 with guidelines .6 
− Regulation  of May 2003 on I nvestment aid and geographical delimitation of areas eligible 
for regional aid.7  
− The Annual State Budget.  
                                                
1 Regulation of 1.7.2014.  
2 Regulation of 1.1.2014.  
3 Reviewed guidelines in effect from 1.1.20 15. 
4 Regional investment grants are from from the reporting year 2017 counted under the scheme 3.3 
Regional Development Aid Scheme.  
5 Regulation of 1.1.2014.  
6 Reviewed guidelines in effect from 1.1.20 15. 
7 Reviewed regulation in effect as of 20 14 (FOR -2014-06-17-807).  G/SCM/N/343/NOR  
 
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  3. Policy objective of the subsidy  
Regional aid; job creation, contribute to develop permanent and profitable businesses in areas with 
special employment problems or a low level of economic activity.  
4. Form of the subsidy  
Grants and loans.  
5. To whom and how the subsidy is provided  
The program provides support for specific applications and is available for enterprises in all sectors 
except for: enterp rises in primary sector in agriculture forestry and fishery which are currently 
receiving state aid; insurance, bank and finance; oil and gas exploration;  public administration; 
and public commercial enterprises.  
The Ministry of Local Government and Modern ization allocates funding for the county authorities for 
use on loan and grant schemes in areas  with special employment problems or a low level of economic 
activity.  The county authorities decide how much will be allocated for such instruments within their  
own region. The allocation from the county authorities is transferred to Innovation Norway for 
decisions on approval or rejection of applications from enterprises located in the corresponding 
county.  
The decision to approve or reject a given application i s based on the assessment of Innovation 
Norway.  
In the assisted area, the maximum aid intensity is 15% of the investment costs for large enterprises 
(250 employees or more), 25% for medium sized enterprises (50 -249 employees), and 35% for 
small enterprises  (up to 49 employees).  
6. Amount of subsidy  
2017:  NOK 75 .65 million . 
2018: NOK 52 .44 million . 
7. Duration of the subsidy  
Starting date: 1987. Duration has not been specified.  
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not availabl e. 
3.3  Regional Development Aid Scheme  
1. The authority responsible for the subsidy  
Innovation Norway  on behalf of  The Ministry of Local Government and Modernisation.  
2. Legislation under which the subsidy is granted  
Act no. 130 of 19 December 2003.  
Regulation on regional aid funds (FOR -2013-12-11-1574) with guidelines  of January 2015 . 
Regulation on eligible areas for investment aid and transport aid (FOR -2014-06-17-807). 
The Annual State Budget.  
3. Policy objective of the subsidy  
Stimulate development of undertakings  within the regional assisted areas . G/SCM/N/343/NOR  
 
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  4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
The Ministry of Local Government and Modernization allocates funding for the county authorities for 
use on loan and grant schemes in areas  with special  employment problems or a low level of economic 
activity.  The county authorities decide how much will be allocated for such instruments within their 
own region. The allocation from the county authorities is transferred to Innovation Norway for 
decisions on  approval or rejection of applications from enterprises located in the corresponding 
county.  
6. Amount of subsidy  
2017: NOK 397.1 million . 
2018: NOK 337.1 million . 
7. Duration of the subsidy  
Not specified.  
8. Trade effects of the subsidy  
Statistica l data indicating  trade effects are not available.  
3.4  Aid scheme for economic development in Svalbard  
1. The authority responsible for the subsidy  
Innovation Norway on behalf of the Ministry of Trade , Industry  and Fisheries . 
2. Legislation under which the subsidy is granted  
Act no.  130 of 19 December 2003 on Innovation Norway.  
Letter from the Ministry of Trade, Industry and Fisheries to Innovation Norway dated 20th June 2016 
(Regelverk for tilskudd til næringstiltak på Svalbard ). 
3. Policy objective of the subsidy  
The objective is to s timulate new economic development in Svalbard.  
4. Form of the subsidy  
Grants . 
5. To whom and how the subsidy is provided  
The scheme applies to all companies and sectors, including services, based in Svalbard  and 
registered in the Norwegian Brønnøysund Register Center . 
Interested businesses has to  apply to Innovation Norway.  
Aid is  granted on the condition that aid is necessary to start up and realise a new project . 
6. Amount of subsidy  
2015: NOK 20 million.  G/SCM/N/343/NOR  
 
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  7. Duration of the subsidy  
Starting date: 1 January 2015. 
Duration: Parliament only approved funding for this scheme in 2015. Aid was granted under this 
scheme, based on the 2015 funding, in 2016 and 2017. The scheme is no longer in operation.  
8. Trade effects of the subsidy  
Statistical data indicating trade effects ar e not available.  
4  ASSISTANCE TO SPECIF IC INDUSTRY SECTORS  
4.1  The Press Grant Scheme  
1. The authority responsible for the subsidy  
The Ministry of Culture.  
2. Title of the subsidy  programme  
Production grants for news and current affairs media . 
3. Policy objective and /or purpose of the subsidy  
Production grants shall stimulate diversity in news and current affairs media characterised by high 
quality and independent journalism, including media in markets that are too small to be sustainable 
and alternatives to the leading m edia in major markets.  
4. Background and authority for the subsidy  
The scheme  was first introduced in 1969 by a parliamentary decision.  
Present legislation: Regulations on production grants for news and current affairs media, adopted 
by the Norwegian Ministry  of Culture 25 March 2014.  
The regulations replaced previous regulations of 7 November 1996. The purpose of the new aid 
scheme was to provide for platform -neutral measures, thereby accommodating the scheme to 
current technological developments and facilita ting the press' transition to digital publishing.  
5. Form of the subsidy  
Grants.  
6. To whom and how the subsidy is provided  
Grants are given to media which:  
(1) Have as their primary objective to engage in journalistic production and the distribution of 
news, curren t affairs and social debate to the general public.  
(2) Contain a broad range of news, current affairs and debate content from different areas of 
society . 
(3) Have an editor in chief . 
(4) Receive genuine payment for news, current affairs and debate content, and adverti sing, 
according to a publicly available price list . 
(5) Sell at least half of their approved net circulation through subscription.  
Further conditions are stipulated in section 3 to 8 in the regulations.  G/SCM/N/343/NOR  
 
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  There are two main groups of recipients:  
(1) Leading and sole  media (media which do not have larger competitors at the publishing 
site) receive a fixed base grant and a fixed amount for each edition (newsprint or 
electronic) beyond one weekly publication.  
(2) Secondary media (media which have a competitor with a larger circulation at the 
publishing site) receive grants calculated on the basis of per annum circulation (newsprint 
or electronic). The grants are based on three different grant rates reflecting the medium's 
competitive position: Rate 1: Nationwide media, Rate 2: Media in large cities (Oslo, 
Bergen, Stavanger and Trondheim), Rate 3: Other media.  
A transitional scheme provides reduced grants to media that no longer qualifies for subsidy.  
7. Subsidy per unit  
The grant  per unit varies greatly , i.e. according to the nu mber of weekly editions, annual circulation 
and competitive position, see above. The grant amounted to a total of 313 million NOK in 2 018, and 
was divided between 158  different news media as follows:  
Nationwide secondary media  160.3 million NOK  
Other secondary media  61.16 million NOK  
Leading and sole media  76.9 million NOK  
Nationwide weekly media  11.7 million NOK  
The transitional scheme  2.6 million NOK  
8.  Duration of the subsidy  
The duration of the scheme is maximum six years (time limit set by the EFTA Surveillance Authority).  
9.  Statistical data permitting an assessment of the trade effects of the subsidy  
Support is assumed to have no trade effects due to the low level of exports/imports of newspapers.  
4.2  The Innovation and Development Grant Sche me 
1. The authority responsible for the subsidy  
The Ministry of Culture.  
2. Title of the subsidy programme  
Innovation and development scheme for news and current affairs media . 
3. Policy objective of the subsidy  
Grants shall promote media diversity  and an enlightened public discourse and stimulate to innovation 
and development in news and current affairs media . 
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
Grants are given to media which:  
(1) Have as their primary objective to engage in jo urnalistic production and the distribution of 
news, current affairs and social debate to the general public.  
(2) Contain a broad range of news, current affairs and debate content from different areas of 
society . 
(3) Have an editor in chief . G/SCM/N/343/NOR  
 
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  All types of media, including broadcasters, fulfilling the eligibility criteria  are eligible to apply for 
grants.  
6. Amount of subsidy  
2018: NOK 7 million.  
7. Duration of the subsidy  
Duration has not been specified . 
8. Trade effects of the subsidy  
Support is assumed to have no trade e ffects . 
4.3  National programmes for the promotion of Norwegian space industry  
1. The authority responsible for the subsidy  
The Ministry of Trade and Industry through the Norwegian Space Agency . 
2. Legislation under which the subsidy is granted  
The Annual State Budge t. 
3. Policy objective of the subsidy  
Assistance for enterprises that delivers goods or services to space related programmes including 
programmes administered by the European Space Agency (ESA). The programme seeks to increase 
the spin -off effects of the Norwegian membership in ESA.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
The grant is eligible for all enterprises that develop space related goods and services. The Norwegian 
Space Agency  administers the allocation of the grant.  
6. Amount of subsidy  
Estimated expenditure for 2017 was NOK 15 million . 
Estimated expenditure for 2018 was NOK 20.4 million . 
7. Duration of the subsidy  
Duration has not been specified, depending on Parliament appropriations.  
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  G/SCM/N/343/NOR  
 
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  5  GENERAL MEASURES  
5.1  Exemptions and reduced rates in the CO2 taxes and in the tax on mineral oil (base 
tax on mineral oil)  
1. The authority responsible for the subsidy  
The Ministry of Finance . 
2. Legislati on under which the subsidy is granted  
The tax rates of the CO 2 tax and tax on mineral oil (base -tax on mineral  oil) and the tax concessions 
are decided by Parliament during the annual budget process.  
3. Policy objective of the subsidy  
The CO 2 tax w as introduc ed 1 January 1991 and the standard rate is  high compared to similar taxes 
that have been established or proposed in other countries. From 1 September 2010 the CO 2 tax also 
applies to natural gas and LPG used on the mainland (CO 2 taxes already applied  to natural gas used 
in offshore activity). Norway applies a  high CO2 tax on fossil fuels  in order to stimulate the use of 
alternativ es that are more environmental  friendly. However, in some sectors there are no  
alternatives  to use fossil fuels , and these sectors have a reduced CO2 tax rate or are exempted  
completely . 
From 1  September  2008 undertakings covered by the EU Emission Trading Scheme (EU ETS) are 
exempted from the CO 2 tax on mineral oil, in order to avoid the use of two economic instru ments 
(tax and quota) to reduce the same emissions. The e xemption  for mineral oil for undertakings 
covered by the EU ETS is  therefore not included in the listed figures for the tax expenditures.  
The tax on mineral oil (base -tax on mineral  oil) was introduc ed 1 Januar y 2000. The objective of the 
tax was to avoid a switch in energy use from electricity to mineral oil when the electricity tax was 
increased from 1 January 2000. Sectors where electricity was not a substitute to mineral oil were 
charged a reduced  rate or  exempted.  
4. Form of the subsidy  
Tax concession.  
5. To whom and how the subsidy is granted  
(a) CO2 tax 
Main rules : 
An excise duty is levied on mineral oil, natural gas and LPG. In 2017 the CO 2 tax on mineral oil 
was NOK 1.20 per litre and in 2018 the tax was NOK 1.33 per litre. The CO 2 tax on natural gas was 
NOK 0.90 per Sm3 in 2017 and NOK 1.00 per Sm3 in 2018. The CO 2 tax on LPG was NOK 1.35 per 
kg in 2017 and NOK 1.50 per kg in 2018.  
Tax concession : 
Mineral oil used in vessels for fishing and catching in inshore waters are subject to a reduced CO 2 
tax. The reduced CO 2 tax was NOK 0.29 per litre in 2017 and NOK 0.29 per litre in 2018.  
Mineral oil used in the fish oil and fish meal industry is subject to a reduced CO 2 tax rate. The 
reduced CO 2 tax was NOK 0.32 per litre in 2017.The Government terminated this reduced rate 
from 1 January 2018.  
Natural gas and LPG used in commercial greenhouses are exempted from the CO 2 tax. G/SCM/N/343/NOR  
 
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  Natural gas and LPG used in freight and passenger transport in domestic ship ping and offshore 
vessels are exempted from the CO 2 tax. The Government terminated this exemption from 1 January 
2018.  
Natural gas and LPG used in manufacturing and mining is levied CO 2 tax at a reduced rate. The 
reduced rate for natural gas was NOK 0.057 per Sm3 in 2017and the rate for LPG was NOK 0 in 
2017. These reduced rates were terminated from 1 January 2018 for undertakings not covered by 
the EU Emission Trading Scheme.  
(b) Base t ax on mineral oil  
Main rules : 
An excise duty is levied on mineral oil. In 2017 the tax rate was NOK 1.603 per litre and in 2018 the 
tax was NOK 1.63 per litre.  
Tax concession : 
For the usage of mineral oil in the pulp and paper industry and in the production of pigments and 
colouring agents a reduced tax rate is applied. The r educed tax rate was NOK 0.147 NOK per litre 
in 2017 and NOK 0.20 per litre in 2018.  
Freight and passenger transport in domestic shipping, vessels used for fishing and catching and 
the fish oil and fish meal industry are exempted from the base tax on minera l oil. 
6. Amount of subsidy  
Expenditure for 2017:  
CO2 tax on mineral oil:  
Vessels used for fishing and catching       NOK 178 million  
Fish oil and fish meal industr y:       NOK 3  million  
 
CO2 tax on natural gas and LPG  
Commercial greenhouses        NOK 18 million  
Freight and passenger tran sport in domestic shipping    NOK 85 million  
Offshore vessels          NOK 26 million  
Manufacturing and mining not covered by the EU ETS   NOK 42 million  
 
Base tax on mineral oil:  
Pulp and paper industry, including productio n of pigments and   
colouring agents:          NOK 13 million  
Fish oil and fish meal industry        NOK 31 million  
Vessels used for fishing and catching       NOK 344 million  
 
Expenditure for 2018:   
CO2 tax on mineral oil:  
Vessels used for fishing and catching       NOK 236 million  
Fish oil and fish meal industr y:       NOK 0.1 million  
CO2 tax on natural gas and LPG  
Commercial greenhouses        NOK 23 million  
Freight and passenger transport in domestic shipping    NOK 6 million  
Offshore vessels          NOK 2 million  
Manufacturing and mining not covered by the EU ETS    NOK 1 million  
 G/SCM/N/343/NOR  
 
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  Base tax on mineral oil:  
Pulp and paper industry , including production of pigments and  
colouring agents :         NOK 10 million  
Fish oil and fish meal industries:       NOK 24 million  
Vessels used for fishing and catching       NOK 383 million  
7. Duration of the subsidy  
Starting date:  
(a) CO2 tax:    1 January 199 1 
(b) Base t ax on mineral oil:  1 January 2000  
8. Trade effects of the subsidy  
Statistical data indicating trade effects a re not available.  
6  ASSISTANCE TO THE FI SHERY SECTOR  
6.1  Transport Support  
1. The authority responsible for the subsidy  
The Ministry of Trade, Industry and Fisheries . 
2. Legislation under which the subsidy is granted  
The Annual State Budget.  
3. Policy objective 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 provided  
The transport support is given to the following sales organis ations:  
The Norwegian Raw Fish Organisation  
Fish Sales Association for Sunnmøre and Romsdal  
Fish Sales Association for Western Norway  
Fish Sales Association for Rogaland County  
Fish Sales Organisation for the Skagerrak Coast  
The Norwegian Herring Sales Ass ociation  
The sales organisations are responsible for the distribution of the transport support to the fishing 
industry. Each sales organisation must submit a plan showing how they intend to apply these funds 
so that fishing activities are secured throughou t the year.  
The fish farming industry  is not eligible for aid under this scheme.  
6. Amount of subsidy  
Balanced budget for 2017: NOK 35 million.  
Balanced budget for 2018: NOK 30.2 million.  G/SCM/N/343/NOR  
 
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  7. Duration of the subsidy  
Duration has not been specified.  
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
6.2  Sealing  
1. The authority responsible for the subsidy  
The Ministry of Trade, Industry and Fisheries . 
2. Legislation under which the subsidy is granted  
The Annual State Budget.  
3. Policy obje ctive of the subsidy  
The objective is to contribute to maximum utilization of harp -seal quotas.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
The sealing fleet and sealing processors can apply for subsidies.  
6. Amount of subsidy  
Balanced budget 2017: NOK 2.5 million  
Balanced budget 2018: NOK 2.5 million  
7. Duration of the subsidy  
Duration has not been specified . 
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
7  ASSISTANCE  TO FORESTRY SECTOR  
7.1  The Forest  Trust  Fund Scheme  
1. The authority responsible for the subsidy  
The Ministry of Finance  and the Min istry of Agriculture and Food.  
2. Legislation under which the subsidy is granted  
The Wealth and Income Tax Act, No 14 of 26  March 1999.  
The Forest Trust Fund Scheme is also based on the Forestry Act of 1 January 2006 with amendments, 
latest by the Act No 98 of 19 June 2009, and on the Regulation on Forest Fund Scheme of 
3 July 2006.  G/SCM/N/343/NOR  
 
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  3. Policy objective of the subsidy  
The Forest Trust Fund is an obligatory reserv e that should provide the forest land owners with a 
basis for financing measures aimed at sustainable management of forest resources . Due to long 
rotation cycles in boreal forests tax benefits are given to promote investments in long-term timber 
production  and forest infrastructure (forest roads) . 
4. Form of the subsidy  
Tax concessions.  
5. To whom and how the subsidy is provided  
Forestry income is in principle taxed as other economic activities. Norwegian forest owners are 
however subject to two special tax schem es. 
The Forest Trust Fund Scheme is established pursuant to a regulation under the Forestry Act and 
requires forest owners to allocate between 4 and 40% of the revenues from harvested timber to a 
government administered fund for the individual forest owner. The amount of money that is set 
aside to the fund is debited in the forest owner 's annual income tax return. The Forest Trust Fund 
is the property of the forest owner, but the use of the fund is regulated allowing only for specific 
purposes such as planting, road building, management planning, non -commercial thinning and 
other activities. When used, the money is treated as income for the forest owner. However, a part 
of it (85%) is exempt from taxation. Any other government monetary support cha nnelled via the 
Forest Trust Fund is fully taxable. In addition to the tax relief granted t hrough the Forest Trust 
Fund, economic support is given for a similar range of activities that support sustainable forest 
management. Special support is directed to areas with relatively low utilization of forest resources 
due to sparsely developed forestry infrastructure, including coastal areas in western, middle and 
northern parts of Norway.  
The forest owner does not receive any interests generated by the fund. The interest is used for 
designated purposes to the benefit of Norwegian forestry.  
6. Amount of subsidy  
Estimated cost of the F orest Trust F unds scheme  tax concession is:  
2017: NOK 120 million . 
2018: NOK 125 million . 
7. Duration of the subsi dy 
The Forest Fund Scheme  was initiated in 1932, but mainly established in its present form in 1965.  
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
7.2  The Timber Account  
1. The authority responsible for the subsidy  
The Ministry of Finance  
2. Legislation under which the subsidy is granted  
The Wealth and Income Tax Act, No 14 of 26 March 1999.  G/SCM/N/343/NOR  
 
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  3. Policy objective of the subsidy  
The objective is to promote utilisation of forest resources.  
4. Form of the subsidy  
Tax concession.  
5. To whom and how the subsidy is  provided  
Forest owners can book taxable income from timber sales gradually, using a balance method very 
much like a profit and loss account. At least 2 0% of the remaining balance must be booked every 
year. Annual deficits must be booked in the Timber Acco unt and deducted by a maximum of 20% 
according to the balance method or from later years ' positive timber income.  
6. Amount of subsidy  
The cost of this tax concession is not estimated.  
7. Duration of the subsidy  
The tax concession  was established in 2017 and rep laced the average tax assessment scheme, which 
was annulled from 2017. It exists until modified or repealed . 
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
7.3  Subsidies for Forest Management Planning  
1. The authority re sponsible for the subsidy  
The Norwegian Agricultural Authority on behalf of The Ministry of Agriculture and Food.  
2. Legislation under which the subsidy is granted  
Regulation on grants for forest management planning with environmental registration of 4  Februa ry 
2004. Funded by the Agricultural Development Fund (LUF) under the annual Agricultural Agreement.  
3. Policy objective of the subsidy  
The objective is to stimulate forest management planning as a basic measure to promote sustainable 
forest management includi ng: 
• Active short and long term utilisation of the forest resources.  
• Preservat ion and enhancement of forest functions related to biological diversity, 
landscape, and cultural and recreational values.  
 
4. Form of the subsidy  
 
Grants.  
 
5. To whom and how the subsidy is provided  
 
The subsidy is available to forest properties with more than 1 hectare . Provided a given area 
coverage of pre -ordered individual forest management plans, the grant covers resource registration 
surveys of larger designated areas and pre paration of forest management plans on individual 
properties. Area registrations provide data for forest inventory and resource overviews. The 
programme also supports capacity building on application of the forest management plan.  
 G/SCM/N/343/NOR  
 
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  The sizes of the grants are decided by the county governor based on the total resource registration 
and plan preparation costs. Normally, subsidies are not granted to properties that have received 
grants from this programme within the last 10 -year period.  
 
6. Amount of subsidy  
 
2017: NOK 26 million.  
2018: NOK 27.5 million . 
 
7. Duration of the subsidy  
 
Starting date: 1971. Duration is not specified. Dependent on annual budgets.  
 
8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available.  
 
7.4  Subsidies for indu strial and environmental purposes in forestry  
1. The authority responsible for the subsidy  
The Ministry of Agriculture and Food through the County Go vernor and local authorities.  
2. Legislation under which the subsidy is granted  
Regulation on grants for industrial and environmental purposes in forestry of 4  February  2004, 
founded on the Forestry Act of 2005. Funded by the Agricultural Development Fund (LUF) under the 
annual  Agricultural Agreement.  
3. Policy objective of the subsidy  
To stimulate value -adding forestry activities and long -term investments  like silviculture and forest 
roads , as well as to enhance environmental values related to biological diversity, landscape, cultural 
inheritance and recreational activities.  
4. Form of the subsidy  
Grants.  
5. To whom a nd how the subsidy is provided  
The grant is eligible for all categories of forest owners and all properties exceeding 1.0 hectare of 
productive forestland.  
The Norwegian Agricultural Authority assigns the grant through the County Governor to local 
authorit ies at municipal level.  
Local authorities are free to develop specific rules in accordance with the national framework. 
Granted measures can be silviculture, pre -commercial thinning, construction and reconstruction of 
forest roads, conservation and enhance ment of environmental values in forest and harvesting of 
round  wood in difficult terrain. The subsidy rates are determined by local authorities.  
6. Amount of subsidy  
2017: NOK 178 million . 
2018: NOK 176 million.  
7. Duration of the subsidy  
Duration is not specifi ed. Dependent on annual budget.  G/SCM/N/343/NOR  
 
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  8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
7.5  Subsidies for Forest Infrastructure  
1. The authority responsible for the subsidy  
 
The Norwegian Agricultural Authority on behalf of The Ministry of Agriculture and Food.  
 
2. Legislation under which the subsidy is granted  
 
The Annual State Budget  and the Forestry Act with amendments . 
 
3. Policy objective of the subsidy  
 
The policy objective is to develop infrastructure necessary to uphold the for est activity in marginal 
forest areas. The grants are mainly aimed at timber quays and  forest roads.  
 
4. Form of the subsidy  
 
Grants.   
 
5. To whom and how the subsidy is provided  
 
All forest owners are eligible for grants, based on application containing plans for the infrastructure 
project.  
 
6. Amount of subsidy  
 
2017: NOK 107 million.  
2018: NOK 57.3 million.  
 
7. Duration of the subsidy  
 
Starting date: 1976.  
Duration is not specified.  Dependent on annual budgets.  
 
8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available.  
8  THE AGRICULTURAL SEC TOR 
8.1  Introduction to subsidies on the expenditure side of the budget  
The notification of the subsidies in the agricultural sector gives an overview of general 
developments in the Norwegian Agri cultural Policy and o f agricultural subsidy program s. 
 
Reference is also made to the notifications on domestic support provided to the Committee on 
Agriculture.  
 
8.2  Information on the subsidy programs  
The various program s are listed under the sub headings 8.2.1 to 8 .2.7 below. The notification covers 
schemes in force from 1 January 2016 until 31 December 2017 . Numbers for 201 8 were not available 
in time for  the deadline for this notification. Norwegian agricultural policy is implemented in pursuit 
of the overa ll objectives concerning food security, agricultural production throughout the country, 
improved productivity and sustainable agriculture.  
 G/SCM/N/343/NOR  
 
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  Target prices for farm products and the fiscal support to agriculture are agreed upon as integral 
parts of the annua l Agricultural Agreement between the farmers' unions and the Government. The 
Agricultural Agreement is subject to ratification and appropriation of budget funds by the Norwegian 
Parliament. Allocations in the Agricultural Agreement are made under Chapter 1 150, Ministry of 
Agriculture of the State budget (cf. table 1 below for details).  
 
Support is provided for grains and oilseeds, fruits and vegetables, milk and dairy products, meat 
from bovine animals, veal, mutton, pork, poultry meat, eggs and wool. Direct payments, of which a 
significant part is differentiated by criteria such as region, size of farms, arable land and number of 
animals, play a significant role.  
 
8.2.1   The milk sector  
Milk production is of vital importance in several rural regions as alternative forms of agricultural 
production are scarce. It is a policy objective to facilitate employment and economic activity in the 
countryside, maintenance of agricultural landscape, and to fulfil national food security policies 
including protecting a rable land a nd securing a decentraliz ed production structure.  
 
Since 1 July 2002, base deficiency payments are granted for goat milk only. In addition, regional 
deficiency payments apply to rural areas. The deficiency payments are paid for each liter  of mi lk 
delivered to the dairy. The amount varies according to region, and the highest support is given in 
the northernmost districts in Norway. Structural income support is also provided to each farm. The 
support is paid as a lump sum to producers with 5  or mo re cows or 27 or more goats for milk 
productio n. The objective of the program is to equaliz e income between larger and smaller holdings.  
 
8.2.2   The meat and egg sectors  
Producers of meat from mutton receive a base deficiency payment on all output. Producers of b eef 
cattle receive structural income support. The support is paid as a lump sum to producers with 6 or 
more succler cows . In addition , a deficiency payment is provided as a quality incentive  for wool. 
Regional deficiency payment is provided to producers of  meat and eggs in less favoured regions. 
The payment is differentiated by region and by type of meat. The rates are highest in the 
northernmost county in Norway. Transport support is granted to equalise farm gate return due to 
differences in distance from slaughterhouses, processing plants and major consumer markets. A 
small amount of transport support is granted to the egg sector based on the same rational as for 
the meat sector. Producers of beef receive payments per k ilo of beef under the quality incenti ve 
support program  for beef if the quality requirement of class O or better in the EUROPE quality 
standard  is met. The aim of the program  is to increase the overall quality of Norwegian beef.  
 
8.2.3   The grain sector  
The Grain Price Support Progra m aims at securi ng the sale of Norwegian grain and to reduce the 
prices on raw materials for flour and for feed purposes.  
 
8.2.4   Potatoes and horticultural products  
Regional deficiency payments are provided to production of fruit, berries and vegetables.  
 
8.2.5   Headage support  
The headage support is based on the number of animals, and the support is differentiated by region, 
farm size and kind of animal.  
 
8.2.6   National environmental program  
The aims of the national program  are to ensure that various types of agricultural landscapes a re 
maintained,  and that valuable biotopes and cultural heritage are attended to and taken care of. 
Given that agricultural  land in Norway constitutes only 3% of the total area, it is important to  
safeguard environmental goods, which are dependent upon the agricultural landscape. An  essential 
part of the program  is therefore to prevent that the agricultural land  is deteriorated. Furthermore, 
the program  is aimed at contributing to an agricultural production that leads to the least possible 
pollution and loss  of nutrients.  G/SCM/N/343/NOR  
 
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  The economic measures under the environmental programs shall cover the additional costs linked 
to the participation in the program  through the maintenance of the agricultural landscape and other 
environmental requirements and represent payme nts for the production of environmental goods. 
The payments under the National Environmental program include payments per decare  and 
payments for grazing animals.  
 
Organic production is subje ct to separate support program s. 
 
8.2.7   Vacation and replacement  
To enable livestock farmers to have sufficient holidays and time off they are refunded expenses for 
hiring relief personnel under the Vacation and Replacement Scheme. Eligible farmers must document 
the expenses.  
 
8.2.8   Market regulation  
Market regulation is mainly financed through a marketing levy. Producers become liable for the 
marketing levy when selling a product. The aim of the  market regulation is to equaliz e prices to 
producers and consumers in different regions and to secure supply of agricultural pro ducts in all 
regions of the country.  
 
8.3  Expenditures and market structure  
Deficiency payments, the structural incom e support, support under the environmental program as 
well as the Vacation and replacement s cheme are granted directly to fa rmers. The rest of the 
program s are market regulation schemes and other indirect schemes.  
 
The amounts of support measured by total budget expenditures for 201 6 and 201 7 are listed in 
tables 1 to 5 below. All numbers are account figures. Tables 1 to 10 provide updated inform ation on 
Agricultural Support in Norway as well as market information on major agricultural commodities. 
The source s are Proposition No 1 (201 6-2017) and (201 7-2018) to the Norwegian Parliament by the 
Ministry of Agriculture and Food, the Norwegian Agricul ture Agency  (Landbruksdirektoratet ) and the 
Norwegian Institute of Bioeconomy Research (NIBIO) , which is a merger of three institutes including 
the Norwegian Agricultural Economics Research Institute (NILF) . 
 
In Table 1 , Price Support and Other direct paym ents to producers are totals from Table 2 and Table 
3. The rates in Table 5 and 6 multiplied by eligible volumes of milk and meat are equivalent to Price 
Support in Table 2.  
Table 1  
Chapter 1150, Agricultural Agreement  
Million NOK  
 2016  2017  
Agricultural Development Fund  1225 1298 
Market Regulation  24 24 
Price Support  3278 3670 
Other direct payments to producers  8371 8205 
Table 2  
Chapter 1150 Price Support  
Million NOK  
 2016  2017  
Milk  605 597 
Beef, veal, mutton and pork  1257 1652 
Cereals  898 899 
Eggs 15 10 
Potatoes, fruit and vegetables  123 134 
Wool 137 132 
Other  243 246 
Total 3278  3670  G/SCM/N/343/NOR  
 
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  Table 3  
Chapter 1150, other direct payments to producers  
Million NOK  
 2016  2017  
Structural income support  1317 1375 
Headage support, animals  2365 2194 
Grazing support  803 852 
Acerage and cultural landscape scheme  3545 3429 
Support to organic production  99 109 
Production support to market crops  52 50 
Other  190 196 
Total 8371  8205  
Table  4 
Base deficiency payments,  amount per unit  
(NOK per kg)  
 2016  2017  
Mutton  3,81 3,81 
Table 5  
Regional deficiency payments, amount per unit  
(NOK per litre/kg)  
 2016  2017  
Milk 1 0.00/1.80  0.00/1.85  
Meat2 0.00/13.80  0.00/14.40  
1) 10 zones, varying rates, lowest and highest cited  
2) 5 zones, varying rates, lowest and highest cited (varies also for kind of meat)  
Table 6  
Cows milk  
Year Received by diaries  Consumption  
million kg  
Million litres  Whole, low -fat and skimmed milk  Cream and sour cream  
2016  1523 446 38.0 
2017  1495 443 38.0 
Table 7  
Cheese (million kg)  
Year Production  Exports  Imports  Consumption  
2016  95.1 11.9 13.9 97.1 
2017  96.4 12.0 13.0 97.4 
Table 8  
Butter (million kg)  
Year Production  Exports  Imports  Consumption  
2016  17.9 1.1 0.4 17.2 
2017  18.4 0.5 0.4 18.3 G/SCM/N/343/NOR  
 
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  Table  9 
Cereals (million kg)8 
Year Production  Exports  Imports  Consumption  
Wheat  
2016  290.4  0.3 319.3  737 
2017  384.1  0.0 302 620.8  
Rye 
2016 19.2 0.0 1.2 41.2 
2017 32.7 0.0 3.6 28.9 
Barley  
2016 601.7  0.1 1.6 482.8  
2017 544.7  0.7 0.8 589.1  
Oats 
2016 339.2  0.0 3.9 274.9  
2017 269.8  0.0 6.2 320 
Table 10  
Meat (million kg)  
Year Production  Exports  Imports  Consumption  
Beef and veal  
2016  81.7 0.2 21.5 103.3  
2017  85.2 0.6 16.2 100.9  
     
Lamb  
2016  26 0 0.9 26.9 
2017  27.4 1.1 0.4 26.7 
     
Pork 
2016  137.7  5.7 2 134 
2017  137.3  7.2 1.8 131.9  
     
Poultry  
2016  98.3 1 2.2 99.5 
2017  101 0.8 2.1 102.3  
Table 11  
Eggs (million kg)  
Year Production  Exports  Imports  Consumption  
2016  68.2 1.1 0.7 68.1 
2017  69.9 1.1 0.5 69.3 
 
__________  
                                                
8 Production data cover the  marketing year 2016/2017 and marketing year 2017/2018 respectively.