G/SCM/N/253/NOR  
 
8 July 2013  
(13-3593)  Page: 1/43  
Committee on Subsidies and Countervailing Measures  Original: 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 28 June 2013, is being circulated at the request of the 
Delegation of Norway. 
 
_______________ 
 
 
TABLE OF CONTENT 
1   INTROD UCTION  .......................................................................................................... 3  
2   ASSISTANCE TO RESEARCH  AND DEVELOPMEN T SCHEMES ......................................... 3  
2.1   R&D Contracts .......................................................................................................... 3 
2.2   Aid Scheme for the promotion of environment-friendly technology .................................... 4  
2.3   Industrial R&D pr ogrammes and pr ojects ...................................................................... 5  
2.4   Tax Credit for Expenses on R&D .................................................................................. 6  
2.5   Scheme for research and development concerning gas technologies with improved 
environmental performance (" Gassnova Aid Sc heme") ........................................................... 7  
2.6   The Wood-based Innovation Scheme ............................................................................ 8  
2.7   Norwegian Centres for Research-based Innovation (CRI) ................................................. 9  
2.8   Centres for environment fr iendly energy re search (FME) ................................................ 10 
2.9   CO 2 Technology Centre Mongstad (TCM) project ............................................................ 11 
2.10   Full scale CO 2 Capture project at Mongstad (CCM) – Development Agreement ................. 12 
2.11   FORNY (Commercia lizing R&D results) ....................................................................... 12 
3   ASSISTANCE TO DISADVANTAGED REGIONS ............................................................. 13  
3.1   Regional In vestment Grant ........................................................................................ 13 
3.2   Scheme for Newly established small enterprises ............................................................ 14 
3.3   The Industrial Development Corporation of No rway (SIVA) ............................................. 15 
3.4   Regional Development Scheme ................................................................................... 16 
3.5   Regional De velopment Grant ...................................................................................... 17 
3.6   Regional transpor t aid ............................................................................................... 17 
3.6.1   SME-aid for re gional development ............................................................................ 18 
3.7   Training aid for regional development .......................................................................... 19 G/SCM/N/253/NOR 
 
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  4   ASSISTANCE TO SMALL AND MEDIUM SIZED EN TERPRISES ...................................... 19  
4.1   National I nnovation scheme ....................................................................................... 19 
4.2   Seed Capital Funds ................................................................................................... 20 
5   ASSISTANCE TO THE ENVIRO NMENT ......................................................................... 21  
5.1   Aid related to sustainabl e production an d consumption .................................................. 21 
5.1.1   The Energy Fund ................................................................................................... 21 
5.2   The Bioenergy Scheme .............................................................................................. 23 
5.3   TRANSNOVA – Schemes for introduction of zero and low emission transport 
technologies and tr ansport pr actice .................................................................................... 23 
6   ASSISTANCE TO EXPORT PROM OTION ...................................................................... 24  
6.1   Export developmen t programme for SMEs .................................................................... 24 
6.2   Export Credit  Financing Scheme ................................................................................. 25 
6.3   Export Credit Guarantees ........................................................................................... 25 
6.4   Exemption from electricity tax for energy intensive industries, paper and pulp 
industry and greenhouses ................................................................................................. 26 
7   ASSISTANCE TO SPECIF IC INDUSTRY SECTORS ........................................................ 27  
7.1   Exemptions and reduced rates in the CO 2 taxes and in the tax on mineral oil (base 
tax on mineral oil) ...........................................................................................................  27 
7.2   The Press Grant Scheme ............................................................................................ 29 
7.3   National programmes for the promotion of Norwegian space industry ............................... 30 
7.4   Research, development and innovation in the maritime industry ...................................... 30 
8   ASSISTANCE TO TH E FISHERY SE CTOR ..................................................................... 31  
8.1   Tax allowance .......................................................................................................... 31 
8.2   Transp ort Support .................................................................................................... 32 
8.3   Support to the Modernisation and Capacity Adjustment of the Fishing Fleet; 
Decommissioning Grant – Th e Structural  Fund ..................................................................... 32 
8.4   Sealing ................................................................................................................. .. 33 
9   ASSISTANCE TO FORESTRY SE CTOR .......................................................................... 34  
9.1   The Forest  Fund Scheme ........................................................................................... 34 
9.2   Subsidies for Forest  Management Planning ................................................................... 35 
9.3   Subsidies for industrial and en vironmental purposes  in forestry ....................................... 36 
9.4   Subsidies for Fo rest Infras tructu re .............................................................................. 36 
9.5   Subsidies for the production of energy wood ................................................................. 37 
10   THE AGRICULT URAL SECT OR ................................................................................... 38  
10.1   Tax allowa nce to fa rmers ......................................................................................... 38 
10.2   Introduction to subsidies on the expenditure side of the budget ..................................... 38 
10.3   Information on the subsidy progra mmes .................................................................... 38 
10.3.1   The mi lk sect or .................................................................................................... 39 
10.3.2   The meat and egg sectors ..................................................................................... 39 
10.3.3   The grain sector ................................................................................................... 39 
10.3.4   Potatoes and horticultural products ......................................................................... 39 
10.3.5   Headage an d Acreage support................................................................................ 39 G/SCM/N/253/NOR 
 
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  10.3.6   Vacation and replacement ..................................................................................... 40 
10.3.7   Market regulation ................................................................................................. 40 
10.4   Expenditures and market structure ............................................................................ 40 
 
 
1  INTRODUCTION 
This report covers state aid programmes and schemes that were in operation in 2011 and 2012. 
The amount of subsidies which is reported, refer to actual payments in the fiscal years 2011 
and 2012. As regards the agricultural sector, the notification covers schemes in force from 1 January 2010 and until 31 December 2011, as numbers for 2012 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 consistent with the legislation of the European Union (EU) in this 
field with the exception of aid to the agricultur e and fisheries sectors. All subsidy schemes to 
sectors other than agriculture and fisheries are no tified to the EFTA Surveillance Authority (ESA) 
for approval before implementation.   
 
The main business support institution is Innovation Norway. As regards subsidies to research and development, the main responsible authorities are Innovation Norway and the Research Council of Norway.   
 
2  ASSISTANCE TO RESEARCH AND DEVELOPMENT SCHEMES 
2.1  R&D Contracts 
1. The authority responsible for the subsidy 
 
Administered by Innovation Norway on behalf  of the Ministry of Trade and Industry.   
 
2. Legislation under which the subsidy is granted 
 
 Act no 130 of 19 December 2003 on Innovation Norway. 
 The Annual State Budget approved by the Parliament. 
 Letter from the Ministry of Trade and Industry to Innovation Norway dated 
3 March 2011 ("Oversendelse av ytterligere reviderte regelverk for Innovasjon Norge"). 
 The scheme was block exempted from the State Aid Rules in the EEA-agreement 
through letter to the EFTA Surveillance Authority with summary information forms dated 17 December 2010 
 
3. Policy objective of the subsidy 
 The policy objective of the programme is wealth  creation in the Norwegian industry through 
developing new products and production methods and to contribute to new industry expertise and 
networks. More directly, the objective is to develop the competitive strength of the Norwegian industry both nationally and internationally and to develop competitive products for an 
international market through the co-operation between suppliers and customers. 
 4. Form of the subsidy 
 Grants.    5. To whom and how the subsidy is provided 
 Support is granted to a variety of projects and sectors. Projects eligible for support are R&D co-operating projects between enterprises, e.g. a majo r customer (public or private) and primarily an 
SME subcontractor. 
 Interested businesses must apply to Innovation Norway. G/SCM/N/253/NOR 
 
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  Aid is granted on the condition that aid is necessary to start up and realise a project. 
 6. Amount of subsidy 
 
2011: NOK 207.8 million. 
2012: NOK 222.2 million.  
7. Duration of the subsidy 
 
Starting date: 1968 Duration: not specified, depending on annual allocations over the state budget.   
 
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   
 2.2  Aid Scheme for the promotion of  environment-friendly technology 
1. The authority responsible for the subsidy 
Administered by Innovation Norway on behalf  of the Ministry of Trade and Industry.   
 2. Legislation under which the subsidy is granted 
 
 Act no 130 of 19 December 2003 on Innovation Norway. 
 The Annual State Budget approved by the Parliament. 
 Letter from the Ministry of Trade and Industry to Innovation Norway dated 
17 February 2012 ("Oversendelse av oppdaterte regelverk for kap. 2421, post 50 og 76").  The scheme was block exempted from the State Aid Rules in the EEA-agreement 
through letter to the EFTA Surveillance Authority with summary information forms dated 
17 December 2010.   
 3. Policy objective of the subsidy 
 The policy objective of the programme is wealth creation in Norwegian industry through developing more environmental-friendly technology by supporting the construction of pilot- and 
demonstration plants.  
 4. Form of the subsidy 
 Grants.    5. To whom and how the subsidy is provided 
 Support is granted to a variety of projects and sectors. Both large enterprises and SMEs are in the target group. Interested businesses must apply to Innovation Norway. Aid is granted on the 
condition that aid is necessary to realise the pilot or demonstration plant. 
 6. Amount of subsidy 
 2011: NOK 62.7 million. 2012: NOK 116.6 million.  
7. Duration of the subsidy 
 
The first grants were provided in 2010, from the National Innovation Scheme. The scheme was 
established as an independent scheme from 2012,  but costs for 2011 are also reported. These 
costs overlap with the National Innovation Scheme for 2011.  
Duration: not specified, depending on annual allocations over the state budget.   
 G/SCM/N/253/NOR 
 
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  8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.    
2.3  Industrial R&D programmes and projects  
1. The authority responsible for the subsidy 
 
Administered by the Research  Council of Norway (RCN). 
 RCN's funds come from:    
 the Ministry of Education and Research 
 the Ministry of Trade and Industry 
 the Ministry of Petroleum and Energy 
 the Ministry of Fisheries and Coastal Affairs 
 the Ministry of Agriculture and Food 
 the Ministry of the Environment 
 the Ministry of Transport and Communications 
 the Ministry of Labour 
 the Ministry of Children, Equality and Social Inclusion 
 the Ministry of Government Administ ration, Reform and Church Affairs 
 the Ministry of Local Government and Regional Development 
 the Ministry of Foreign Affairs 
 the Ministry of Health and Care Services 
 
2. Legislation under which the subsidy is granted 
 
Funds from each ministry come from the Stat e Budget which is approved by the Norwegian 
Parliament by the end of each 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 have  been approved by the Ministry of Trade and 
Industry and subsequently by ESA according to the EEA-agreement.   
3. Policy objective of the subsidy 
 
Main objective is to promote innovation and wealth creation in business and industry by 
encouraging and supporting R&D activities leading to:   
 
 increased international competitiveness and a sustainable business and industry 
sector based on knowledge, expertise, networking and learning.   
 industrial R&D efforts emphasising long-term socio-economic dividends.   
 an increase in the number of enterprises that take a systematic approach to research 
and development.   
 collaboration and networking.   
 4. Form of the subsidy 
 Grants.  5. To whom and how the subsidy is provided 
 Support is granted to a variety of R&D projects, in different sectors. R&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 industrial sectors participate in the projects. SMEs are given priority by RCN. Where private enterprises are contractors, maximum aid intensity G/SCM/N/253/NOR 
 
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  is not allowed to exceed 50 per cent of the total project costs. Only costs directly related to the 
accomplishment of the R&D projects are eligible. Costs eligible for aid are:    
 Personnel costs.   
 Current costs.   
 Consultancy and service costs.   
 In some projects instruments and equipment may also be included.   
 
The condition for RCN aid is that the R&D-contractors prove that they can put in other funds than the funds from RCN (in the form of funds from ot her sources or in the form of own funds or as 
input of man-hours). The individual R&D-contractors may participate in more than one 
R&D project, both as contractors and as sub-contractors (participants).   
 6. Amount of subsidy 
 2011: NOK 823.87 million. 2012: NOK 893.48 million.
1 
 
7.  Duration of the subsidy 
 Duration for RCN's current R&D-programme is 8 to 10 years. There is no specific duration of the 
actual aid scheme.   
 8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.    
2.4  Tax Credit for Expenses on R&D 
1. The authority responsible for the subsidy 
 
The Tax Administration, on behalf of the Ministry of Finance. The Research Council of Norway is 
responsible for approving the R&D content.   
 2. Legislation under which the subsidy is granted 
 The Taxation Act.    
3. Policy objective of the subsidy 
 
Stimulate the business sector to increase its R&D activities.    
4. Form of the subsidy 
 
Tax concession (tax credit).   
 
5. To whom and how the subsidy is provided 
 
The scheme applies to all sectors and regions, there is no discrimination between sectors or regions. 
The scheme provides tax credits for industrial and commercial enterprises on their R&D expenses. The aid scheme supports internal R& D projects as well as purchases from approved universities, 
institutes and laboratories. The tax credit is 20 per cent of R&D expenses (18 per cent for large 
companies).   
 Until the tax year 2008 (book year 2009), expenses per company were limited to NOK 4 million for 
internal R&D, and NOK 8 million for external pu rchases. The total basis per company should not 
exceed NOK 8 million. Since 1 January 2009, the corresponding limits are NOK 5.5 and 11 million. Projects have to be approved as R&D ex ante  by the Research Council of Norway, and the project 
                                               
1 As the Industrial R&D programmes and projects a ddress the private sector as such, subsidies to the 
service sector are included in these numbers. G/SCM/N/253/NOR 
 
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  expenditure certified ex post  by an auditor. Tax credit exceeding assessed taxes (i.e., companies 
in a non-taxpaying position) is refunded as part of the yearly tax settlement.    6. Amount of subsidy (recorded costs, includes both goods and services)
 
 2011: NOK 1 212 million. 2012: NOK 1 295 million. 
 
7.  Duration of the subsidy  
 Not specified.  
 
8.  Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   
 2.5  Scheme for research and development co ncerning gas technologies with improved 
environmental performance ("Gassnova Aid Scheme") 
1. The authority responsible for the subsidy 
 
Administered by Gassnova on behalf of th e Ministry of Petroleum and Energy.   
 
2. Legislation under which the subsidy is granted 
 
 The Annual State Budget approved by the Parliament.   
 The Gas Technology Fund.   
 
3. Policy objective of the subsidy 
 
The purpose is to stimulate development and testing of CO 2 capture and storage technologies. The 
scheme supports research, development, testing and demonstration of new technologies.   
 
Short term objectives:    
 Qualify and reduce costs associated with CO
2 capture from power plants and industry.   
 Establish methods for reliable geological storage of CO 2
 .   
 
Long term objectives:   
 
 Improve or develop technologies with the potential to significantly improve efficiency 
and profitability in the field of CO 2 capture from power plants and industry.   
 Develop robust methods for CO 2 storage. This means the methods must satisfy the 
requirements for approval as a climate measure pursuant to international agreements.   
 
4. Form of the subsidy 
 
Grants.   
 
5. To whom and how the subsidy is provided 
 Support is granted to a variety of CO
2 capture and storage projects within the electricity and 
industrial sector. Projects eligible for support  are research and development and demonstration 
projects within the field of CO 2 capture and storage.   
 
Support from Gassnova may be granted to three types of projects 
 
 Technological and business oriented feasibility studies in which new technologies are 
assessed individually or as part of a value ch ain. Studies shall focus on the technological 
and commercial potential and cost effectiveness of new solutions.    Financial assistance to testing of technologies in pilot scale conditions e.g. individual 
process stages.   G/SCM/N/253/NOR 
 
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   Financial assistance to demonstration of technologies. Testing and operation of plants 
in a technical or semi industrial scale, where the purpose is to accumulate data which can demonstrate performance, availability, reliability and provide a basis for design optimisation. The project must generate scalable technical and commercial design 
parameters to support design and commercial eval uation of full scale industrial application, 
and be adequate to enable suppliers to offer functional guarantees.   
 
6. Amount of subsidy 
 
2011: NOK 75.3 million. 2012: NOK 165.9 million. 
 
7. Duration of the subsidy 
 
Starting date: 30 November 2005.   
Duration: 10 years.    
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.    
2.6  The Wood-based Innovation 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 State Budget.    3. Policy objective of the subsidy 
 The objective is to increase the use of wood th rough research, development and innovation, as a 
renewable material with lower impact on the envi ronment and to increase the utilisation of wood 
as an environmentally friendly alternative to other building materials.   
 4. Form of the subsidy 
 Grants.    5. To whom and how the subsidy is provided 
 Aid is granted to enterprises involved in the production or development of wood products, entrepreneurs, architects, organisations for th e wood industry, and research and development 
institutions which cooperate with enterprises.   
 The scheme is open to all regions and all sector s, as long as the project contributes to the 
objective of the scheme.   
 6. Amount of subsidy 
 
2011: NOK 30 million. 
2012: NOK 47 million.  
7. Duration of the subsidy 
 
The scheme was established in 2006, and will be in force until 31 December 2013. The scheme is, 
however, dependent on annual allocations over the state budget.   
 G/SCM/N/253/NOR 
 
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  8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.    
2.7  Norwegian Centres for Research-based Innovation (CRI) 
1.  The authority responsible for the subsidy 
 
The Ministry of Education and Research and the Ministry of Trade and Industry through the 
Research Council of Norway.    2.  Legislation under which the subsidy is granted   
 Funds from The Ministry of Education and Research  and the Ministry of Trade and Industry comes 
from the State Budget which is approved by the No rwegian Parliament by the end of each year.   
 
3.  Policy objective of the subsidy 
 
It is believed that the notified scheme will contribute to an increase in the level of R&D which will 
further lead to innovation and higher growth. The Norwegian CRI scheme has been developed in 
order to support long-term R&D activities:    
 to create a knowledge-base that will give enterprises an incentive to innovate; 
 to facilitate active alliances between research active enterprises and research groups 
at research institutions; 
 to support industrially oriented research groups doing frontier research; and 
 to stimulate researcher training and transfer of research-based knowledge. 
 
4.  Form of the subsidy 
 
Support is given as grants to the host institutions with whom RCN has a contract.   
 
5.  To whom and how the subsidy is provided 
 
The Norwegian authorities have notified a scheme concerning the setting up of CRIs involving the 
co-operation of private and public bodies with financial support from the Research Council of Norway (RCN) in the form of grants.    
The CRI grants are based on an open call where a host institution and partners apply for CRI 
status. The scheme is open to participation of large, internationally oriented enterprises as well as research-intensive small and medium-sized enterprise s. Any undertaking, irrespective of its size or 
field of activity may participate in the scheme. Furthermore, in order to take part in a CRI, it is not 
necessary to have headquarters located in Norway ; any foreign company, even without operations 
in Norway, may take part.   
 
The host institution in which the CRI will be based can be a university, a non-profit research institute or an undertaking with a strong research activity. It must be situated in Norway. A foreign 
research institution/undertaking with operations in Norway may thus serve as a host institution for 
a CRI. The general rule is that the CRI will consist of research groups located in the same place. 
There may, however, be some cases of "virtual centres", based on collaboration between groups, 
which are not located in the same place and which have effective communication systems and 
systems for exchanging personnel between the various parts of the virtual centre.   
 The scheme is non-sector-specific and grants may be awarded for any field of research.   
 
The RCN will cover up to a maximum 50 per cent of  the CRI's annual budget. The host Institution 
with partners undertakes to contribute at least 50 per cent of the centres' annual budget. At least 25 per cent of the CRI's budget must come from undertaking partners.   
 
The CRIs will dedicate the greatest part of their resources to fundamental research. Indeed, in general, 75 per cent of the research carried out is to be fundamental research and the remaining 
25 per cent is to cover industrial research. No pre-competitive research is to be carried out in the G/SCM/N/253/NOR 
 
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  CRIs.  Most projects will cover both fundamental and industrial research but there may be some 
projects which will consist of industrial research exclusively.    6.  Amount of subsidy
2 
 2011: NOK 179.8 million. 2012: NOK 209.6 million.  
 
7.  Duration of the subsidy  
 Duration: from 2008 until 2019. 
 
8.  Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   
 2.8  Centres for environment friendly energy research (FME) 
1.  The authority responsible for the subsidy 
 
The Ministry of Petroleum and Energy through the Research Council of Norway.    
2.  Legislation under which the subsidy is granted   
 
Fund from the Ministry of Petroleum and Energy comes from the State Budget which is approved 
by the Norwegian Parliament by the end of each year.   
 3.  Policy objective of the subsidy 
 The scheme of the Centres for Environment-friendly Energy Research (FME) seeks to develop expertise and promote innovation through focus on long-term research in selected areas of environment-friendly energy and CO
2 management in close cooperation between prominent 
research communities, industrial companies and public entities.  
 The scheme seeks to enhance technology transfer, internationalisation and researcher training. 
 
4.  Form of the subsidy 
 
Support is given as grants to the host institutions with whom RCN has a contract.   
 5.  To whom and how the subsidy is provided 
 
The FME grants are based on an open call where a host institution and partners apply for FME 
status. The scheme is limited to R&D-activity wi thin the thematic area of renewable energy, 
energy efficiency and CO 2-management. The scheme is open to participation of large, 
internationally oriented enterprises as well as research-intensive small and medium-sized 
enterprises. In order to take part in an FME, it is not necessary to have headquarters located in Norway; any foreign company, even without operations in Norway, may take part. The host 
institution, in which the FME will be based, can be a university or a non-profit research institute. It 
must be situated in Norway.   The RCN will cover up to a maximum 50 per cent of the FME's annual budget. The host Institution 
with partners undertakes to contribute at least 50 per cent of the centres' annual budget. At least 
25 per cent of the FME's budget must come from undertaking partners.    
The FMEs will dedicate the greatest part of their resources to fundamental research. In general, 
75 per cent of the research carried out is to be fundamental research and the remaining 25 per cent is to cover industrial research. Most projects will cover both fundamental and industrial 
research but there may be some projects which will consist of industrial research exclusively.   
                                               
2 As the Norwegian Centres for Research-based I nnovation address the public and private sector 
altogether, subsidies to the service se ctor are included in these numbers. G/SCM/N/253/NOR 
 
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  6.  Amount of subsidy3 
 
2009: NOK 60.6 million.  2010: NOK 123.2 million. 
2011: NOK 138 million. 
2012: NOK 131.8 million.   
7.  Duration of the subsidy  
 
Duration: from 2009 until 2017.  
8.  Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   
 
2.9  CO 2 Technology Centre Mongstad (TCM) project 
1. The authority responsible for the subsidy 
 
Managed by Gassnova SF on behalf of th e Ministry of Petroleum and Energy.   
 2. Legislation under which the subsidy is granted 
 The Annual State Budget approved by the Parliament.    
3. Policy objective of the subsidy 
 
The objective of the TCM is to test, verify, and demonstrate different concepts and technologies 
capable of reducing costs and risks related to large scale carbon capture.   
 The test facilities at TCM will test two post-combustion technologies, amine absorption and ammonium carbonate absorption (chilled ammonia). Both technologies, provided by two different 
suppliers, will be tested in parallel. TCM will  have a capture capacity of 100 000 tons of CO
2 a year 
from two different sources of flue gas.    
4. Form of the subsidy 
 
Grants.   
 
5. To whom and how the subsidy is provided 
 The TCM project is operated by a so-called unlimited company with shared liability. Statoil 
participates with a share of 20 per cent in the Company, Shell and SASOL participates with a share 
of 2.44 per cent each, whereas the State covers the remaining 75.12 per cent. Should other undertakings invest in the Company, the State's share will be reduced accordingly.   
 
The State participation is managed by Gassnova SF, a state-owned enterprise for CO
2 capture and 
storage.  
 
6. Amount of subsidy 
 2011: NOK 1 386.9 million. 
2012: NOK 1 008 million.   
 7. Duration of the subsidy 
 Construction of the TCM started in 2009 and is pl anned to be completed in 2012. Operation of the 
TCM is planned for a minimum of 5 years from the completion of facilities.   
 
                                               
3 As the Centres for environment friendly energy research addre ss the public and private sector 
altogether, subsidies to the service se ctor are included in these numbers. G/SCM/N/253/NOR 
 
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  8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.  
2.10  Full scale CO
2 Capture project at Mongstad (CCM) – Development Agreement 
1. The authority responsible for the subsidy 
Managed by Gassnova SF on behalf of the Ministry of Petroleum and Energy. 
2. Legislation under which the subsidy is granted 
The Annual State Budget approved by the Parliament.   
 3. Policy objective of the subsidy 
 The objective of the CCM project is to establish a full scale CO
2 - capture plant to be retro-fitted 
into the gas-fired combined heat and power plant at Mongstad.   
 
In 2006, the Norwegian state and Statoil signed the Implementation Agreement , which stated that 
the parties to the agreement shall co-operate in developing CO 2-capture technology and the 
establishment of a full-scale capture facility at Mongstad. In 2011, the Norwegian state and Statoil 
signed the Development Agreement , which regulates the rights and obligations of the parties to 
the agreement on issues related to the development phase  of the full scale project. 
 
This subsidy pertains to the financing of the costs related to the development phase of the project, 
as set out in the Development Agreement.   
4. Form of the subsidy 
 
Grants.   
 
5. To whom and how the subsidy is provided 
 Funding for the development and planning stages of the Carbon Capture Mongstad facility is 
awarded to Statoil as yearly grants over the state budget. Gassnova SF manages the Norwegian 
state’s interests as defined in the Development Agreement  between the Norwegian state and 
Statoil.  
 
6. Amount of subsidy 
 
2012: 267 million. 
 7. Duration of the subsidy 
 
1.4.2012 – 30.6.2016. 
 8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.  
2.11  FORNY (Commercializing R&D results) 
1. The authority responsible for the subsidy 
 
Administered by the Research  Council of Norway (RCN). 
 
RCN's funds come from:    
 the Ministry of Trade and Industry 
 the Ministry of Education and Research 
 the Ministry of Fisheries and Coastal Affairs G/SCM/N/253/NOR 
 
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  2. Legislation under which the subsidy is granted 
 
Funds from each ministry come from the Stat e Budget which is approved by the Norwegian 
Parliament by the end of each year.   
 
Guidelines for the subsidy programmes as such ha ve been approved by the Ministry of Trade  and 
Industry and subsequently by ESA according to the EEA-agreement.  
 
3. Policy objective of the subsidy 
 The main task of the programme is to facilitate innovation and commercialisation of R&D results 
from publicly-funded research institutions.  
 The programme will provide funding to projects carried out by new knowledge based start-ups that 
are younger than 6 years. The criteria to receive funding from the FORNY-programme for the new 
knowledge-based start-ups are in compliance with article 35 “Aid to young innovative enterprises ” 
in the General Block Exemption Regulation.  
 
4. Form of the subsidy 
 Grants. 
 
5. To whom and how the subsidy is provided 
 
The target group is companies that are in compliance with the criteria in article 35 “Aid to young 
innovative enterprises ” in the General Block Exemption Regulation. 
 
A yearly call for proposals is published at The Research Council of Norway’s and the programme’s 
websites. The proposals are evaluated by a panel of  external national and foreign experts. Their 
recommendation goes to the Programme Committee who makes the final decision.   
The projects are followed up by reports to the programme secretariat.  
 6. Amount of subsidy 
 2012: NOK 5.6 million.  
7.  Duration of the subsidy 
 
Duration up to 2020.   
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.  
 
3  ASSISTANCE TO DISADVANTAGED REGIONS 
3.1  Regional Investment Grant 
1.  The authority responsible for the subsidy 
 
Innovation Norway on behalf of The Ministry of  Local Government and Regional Development.   
 
2.  Legislation under which the subsidy is granted 
 
 Act no. 130 of 19 December 2003.   
 Guidelines of January 2005 on "Use and admi nistration of chapter 551 post 60 Grants 
to County Municipalities fo r Regional Development".4 
                                               
4 Reviewed guidelines in effect from 1.1.2010.   G/SCM/N/253/NOR 
 
- 14 - 
 
   Regulation of May 2003 on Investment aid and geographical delimitation of areas 
eligible for regional aid.5   
 The Annual State Budget.   
 
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 
 
Enterprises situated in the assisted areas. SMEs are given priority.    
The scheme is available for enterprises in all sectors except primary production in agriculture, 
forestry and fishery which receives current state aid, insurance, bank and finance, oil and gas exploration, public administration and public commercial enterprises.   
 
Grants are provided to tangible investments. The 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 investments) and R&D-
projects.    The assisted area is divided into three zones. In zone A the general aid intensity is maximum 
25 per cent of the investment costs and SMEs may obtain 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 obtain in addition 10 percentage points.   
 Grants falling under the notion "soft aid" must not exceed 50 per cent of the eligible costs in all 
zones and is confined to SMEs (max. 250 employees  is one of three criteria). Grants to R&D-
projects are in general limited to 30 per cent of the investments in zone A, B and C. SMEs may obtain in addition a grant of 10 percentage points.   
6.  Amount of subsidy 
 
2011: NOK 180.6 million. 
2012: NOK 126.4 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 available.    
3.2  Scheme for Newly established small enterprises 
1.  The authority responsible for the subsidy 
 
The Ministry of Local Government and Regional De velopment. The scheme is administered by local 
municipalities and Innovation Norway.    
                                               
5 Reviewed regulation in effect as of 1.1.2007.   G/SCM/N/253/NOR 
 
- 15 - 
 
  2. Legislation under which the subsidy is granted 
 
 The Annual State Budget (Ministry of Local Government and Regional Development) 
chapter 551 post 60 and chapter 552 post 72,  
 Guidelines of January 2010 on "Use and admi nistration of chapter 551 post 60 Grants 
to County Municipalities fo r Regional Development",  
 Guidelines of January 2010 on "Use and admi nistration of chapter 552 post 72 National 
Schemes for Regional Development".  
 
3. Policy objective of the subsidy 
 Provide assistance to newly-established small enterprises in a start-up phase (first five years).   
4. Form of the subsidy 
 
Grants.    
5. To whom and how the subsidy is provided 
 
The subsidy is available to small enterprises in regions eligible for regional aid.  
 
6.  Amount of subsidy 
 
2011: NOK 15.6 million. 2012: NOK 7.2 million. 
 
7.  Duration of the subsidy 
 
Not specified.   
 8.  Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   
 3.3  The Industrial Development Corporation of Norway (SIVA) 
1.  The authority responsible for the subsidy 
 
The Ministry of Trade and Industry and the Ministry of Local Government and Regional 
Development.   
 2.  Legislation under which the subsidy is granted 
 
The State Budget – Ministry of Tr ade and Industry, Ch. 2426.70.   
 The State Budget – Ministry of Local Governme nt and Regional Development, Ch. 552.72. The 
scheme was block exempted from the State Aid Ru les in the EEA-agreement through letter to the 
EFTA Surveillance Authority with a summary information sheet dated 6 January 2012.    
3.  Policy objective of the subsidy  
 
SIVA's main objective is to contribute to innovati on and industrial development by offering real 
estate locations and measures to facilitate innovation and value creation nationwide. SIVA has a 
special responsibility for promotion of innovation and growth in rural areas.   
 The objective of the innovation scheme is to contri bute to strong local and regional environments 
for innovation, business development and employment.   
 4.  Form of the subsidy 
 Grants. G/SCM/N/253/NOR 
 
- 16 - 
 
  5.  To whom and how the subsidy is provided 
 
Support is granted to a variety of activities, programmes and sectors. Most recipients are SMEs according to the relevant EEA definitions.     
 
6.  Amount of subsidy 
 
2011: NOK 36 million. 
2012: NOK 91 million.  The large increase in subsidy from 2011 to 2012 is du e to the fact that all sources of financing for 
the measure now is included. Previously only subsidies through the Ministry of Trade and Industry 
were included.  
7.  Duration of the subsidy 
 
Starting date (Ministry of Local Government and Regional Development): 1992. 
Starting Date (Ministry of Trade and Industry): 2005. 
Duration indefinite, depending on Parliament appropriations.  8.  Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.    
3.4  Regional Development Scheme 
1. The authority responsible for the subsidy 
 
Ministry of Local Government and Regional Development, in most of the cases through Innovation 
Norway.   2. Legislation under which the subsidy is granted 
 
 Guidelines of January 2010 on "Use and admi nistration of chapter 552 post 72 National 
Schemes for Regional Development".  
 The Annual State Budget.  
 
3. Policy objective of the subsidy 
 The overall aim is to develop the private industrial sector, enhance entrepreneurship and contribute to regional restructuring.   
 
4. Form of the subsidy 
 
Grants.   
 5. To whom and how the subsidy is provided 
 
Subsidies are given to clusters of firms, to enhance entrepreneurship, to small and medium 
businesses (SMBs) and incubators.  
6. Amount of subsidy 
 
The scheme has ended.  
 
7. Duration of the subsidy 
 Starting date: 1986. The scheme ended in 2010.  
 
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   G/SCM/N/253/NOR 
 
- 17 - 
 
  3.5  Regional Development Grant  
1. The authority responsible for the subsidy  
 
Ministry of Local Government and Regional Development through Innovation Norway.  
 
2. Legislation under which the subsidy is granted 
 
 Guidelines of January 2010 on "Use and ad ministration of chapter 551 post 60 and 
61 Grants to County Municipalities for Regional Development",  
 The Annual State Budget.  
 
3. Policy objective of the subsidy  
The aim of the scheme is to enhance balanced growth between regions through subsidies to firms 
in assisted areas. 
 4.  Form of the subsidy  
 
Grants.  
 5. To whom and how the subsidy is provided  
 The subsidy is granted to firms located in assisted areas (differentiated rates). The programmes include also subsidies to clusters, entrepreneurship, small and medium businesses (SMBs) and 
incubators.  
 6.  Amount of subsidy  
 
The scheme has ended. 
 7. Duration of the subsidy  
 Starting date: 1986. The scheme ended in 2010.   
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.  
3.6  Regional transport aid 
1. The authority responsible for the subsidy 
 
The Ministry of Local Government and Regional Development, the County Municipalities of Sør-
Trøndelag, Nord-Trøndelag, Nordland and Troms.    
2. Legislation under which the subsidy is granted 
 
The Annual State Budget.    
3. Policy objective of the subsidy 
 
Stimulate economic growth in less developed areas by means of reducing the competitive 
disadvantages caused by long distances, difficul t transport conditions and scattered population.   
 4. Form of the subsidy 
 Grants.    G/SCM/N/253/NOR 
 
- 18 - 
 
  5. To whom and how the subsidy is provided 
 
The purpose of the scheme is to offset additi onal transport costs of firms located in the 
northernmost 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 to transport of raw materi als or semi-finished goods that will undergo 
significant processing at the premises of the cons ignee, and transport from places within the area 
of finished or semi-finished goods that have undergone significant processing within the eligible 
area.    6. Amount of subsidy 
 2011: NOK 26.69 million. 2012: NOK 26.81 million. 
 
7.  Duration of the subsidy  
 
Not specified.  
 
8. Trade effects of the subsidy  
 Statistical data indicating trade effects are not available.   
 
3.6.1  SME-aid for regional development 
1. The authority responsible for the subsidy 
 
The Ministry of Local Government and Regional Development, Innovation Norway.    2. Legislation under which the subsidy is granted 
 The Annual State Budget.    
3. Policy objective of the subsidy 
 
Stimulate the development of SMEs.   
 
4. Form of the subsidy 
 Grants.   
 
5. To whom and how the subsidy is provided 
 
Aid for consultancy costs of services provided by outside consultants and aid for SME participation 
in fairs.    
6. Amount of subsidy 
 
2011: NOK 50.8 million. 2012: NOK 29.2 million.   
 
7. Duration of the subsidy 
 
Not specified.    
 8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.    G/SCM/N/253/NOR 
 
- 19 - 
 
  3.7  Training aid for regional development 
1. The authority responsible for the subsidy 
 
The Ministry of Local Government and Regional Development, Innovation Norway.   
 
2. Legislation under which the subsidy is granted 
 
The Annual State Budget.   
 3. Policy objective of the subsidy 
 
Stimulate the development of SMEs through aid for training measures.   
 4. Form of the subsidy 
 Grants.    
5. To whom and how the subsidy is provided 
 
The aid is granted to SMEs for training of staff.    
6. Amount of subsidy 
 
2011: NOK 53.6 million. 
2012: NOK 54.8 million. 
 7. Duration of the subsidy 
 Not specified.   8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.    
4  ASSISTANCE TO SMALL AND MEDIUM SIZED ENTERPRISES 
4.1  National Innovation scheme 1. The authority responsible for the subsidy 
 
Innovation Norway on behalf of the Ministry of Trade and Industry.   2. Legislation under which the subsidy is granted 
 
 Act no 130 of 19 December 2003 on Innovation Norway. 
 Letter from the Ministry of Trade and Industry to Innovation Norway dated 
3 March 2011 ("Oversendelse av ytterligere reviderte regelverk for Innovasjon Norge"). 
 The Annual State Budget. 
 The scheme was block exempted from the State Aid Rules in the EEA-agreement 
through letter to the EFTA Surveillance Authority with summary information forms dated 
17 December 2010.   
 3. Policy objective of the subsidy 
 The objectives are to promote inventions, product development, restructuring and competence development, in Norwegian SMEs.  
 
4. Form of the subsidy 
 
Grants, soft loans and guarantees.   
 G/SCM/N/253/NOR 
 
- 20 - 
 
  5.  To whom and how the subsidy is provided 
 
The condition is that the aid is necessary to start up and realise a project. Interested businesses must apply to Innovation Norway.  
 
6. Amount of subsidy 
 
2011: NOK 37.2 million. 
2012: NOK 25.1 million.  
‐ The scheme appears to have been substantially reduced. However,  the aid scheme Aid 
scheme for the promotion of environment-friendly technology  is now reported independtly 
and so-called de minimis aid is not part of the scheme. The amount of de minimis aid in 2012 was NOK 58.1 mill. 
 
There was a significant increase from the two previous years, because of the financial crisis.  
7. Duration of the subsidy 
 
Starting date: 1 January 1993. Duration: not specified, depending on annual allocations over the state budget.   
 
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   
 4.2  Seed Capital Funds 
1. The authority responsible for the subsidy 
 
The Norwegian Ministry of Trade and Industry through Innovation Norway.    
2. The legislation under which the subsidy is granted 
 
 State budgets 1997-2000 and 2004-2005 
 Letter to Innovation Norway from the Ministry of Trade and Industry dated 
20 December 2010 ("Oversendelse av revide rte regelverk for Innovasjon Norge"). 
 The scheme was block exempted from the State Aid Rules in the EEA-agreement 
through letter to the EFTA Surveillance Authority with summary information forms dated 
17 December 2010.   
 3. Policy objective of the subsidy 
 Increase access to seed capital to new innovative high-growth firms.    
4. Form of the subsidy 
 
Loans to investors on favourable terms, as well as support to cover management fees.  
 
5. To whom and how the subsidy is provided 
 The subsidy is provided to investors in order to increase their access to early stage venture capital. 
Investors participating must provide up to the same amount of capital as the state. The investors 
operate the scheme through nine independent and privately owned seed capital funds.  
 
6. Amount of subsidy 
 
 Total loans of NOK 1 367 million. 
 Total loss fund of NOK 341.75 million. 
 Payment of subsidy in 2011: NOK 15.6 million. G/SCM/N/253/NOR 
 
- 21 - 
 
   Payment of subsidy in 2012: NOK 24.3 million. 
 Annual expenses to management was NOK 3.8 million in both years and included in 
the aggregate figures for each year 
 
7. Duration of the subsidy 
 Until the funds cease operations, but no longer th an 15 years from the establishment of the funds. 
Allocation for a new generation of funds were  made in 2012. However, the funds are not yet 
operational and no aid has been paid out.  
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   
 
5  ASSISTANCE TO THE ENVIRONMENT 
5.1  Aid related to 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 provided 
 
Support is granted to a few projects. Financial support to these companies takes most of the aid available.   
 
6. Amount of subsidy 
 
2011: NOK 18.7 million. 
 7. Duration of the subsidy 
 Starting date: 1 January 1990.   Duration: 2011 was the last year of payment for this scheme.    
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   
 
5.1.1  The Energy Fund 
1. The authority responsible for the subsidy 
 
The Norwegian Ministry of Petroleum and Energy  is responsible for the scheme. The public 
enterprise Enova SF is responsible for implemen tation and administration of the scheme.   G/SCM/N/253/NOR 
 
- 22 - 
 
  2. Legislation under which the subsidy is granted 
 
 Parliamentary decision of 5 April 2001 with pr ovisions by the Ministry of Petroleum and 
Energy of 21 December 2001. 
 Energy Act of 29 June 1990 no. 50 with regulations of 10 December 2001 no. 1377. 
 
3. Policy objective of the subsidy 
 An important policy instrument to promote energy  efficiency, the promotion of renewable energy 
and the development of energy and climate techno logies is the availability of investment aid 
through the public enterprise Enova. Enova’s acti vities are financed by resources in a dedicated 
fund, “the Energy Fund”.  
 
Enova’s management of the Energy Fund is subject to the following six main goals: 
 
 Development and market introduction of energy and climate technologies.  
 More efficient and flexible use of energy.  
 Increase the use of other energy carriers than electricity, natural gas and oil for 
heating.  
 Increase the use of new energy resources, including energy recovery and bioenergy. 
 Well-functioning markets for efficient ener gy, climate and environmentally friendly 
solutions.  
 Increase the knowledge level in society about energy efficient, climate and 
environmentally friendly solutions.  
 
4. Form of the subsidy 
 
The subsidy is given in the form of investment aid. 
 
5. To whom and how the subsidy is provided 
 Eligible recipients for aid under the Energy Fund are: 
 
 Undertakings investing in energy saving or conversion to more renewable energy 
sources in buildings, industry and construction.  
 Undertakings investing in renewable energy installation for internal use or external 
sale.  
 Undertakings investing in energy recovery of which the waste heat is exclusively or 
mainly used for electricity production and minor amounts are used for heat in district 
heating installations.  
 Undertakings investing in energy efficient district heating installations.  
 Municipalities and other regional entities investing in any of the above.  
 Households investing in energy saving measures or conversion from oil electricity to 
waterborne renewable energy solutions for heating purposes.   
 
The aid recipients are not limited to undertakings registered in Norway. However, to be eligible for 
aid the projects must take place within Norway.  
6. Amount of subsidy 
 
 There is no fixed amount of aid per unit. Amount paid out by Enova in 2011: approximately NOK 1 462 million. 
Amount paid out by Enova in 2012: approximately NOK 1 265 million.  
 7. Duration of the subsidy 
 The Energy Fund was established on 1 January 2002. There is no time limit for the duration of the 
Fund. 
 
8. Trade effects of the subsidy 
 Statistical information indicating trade effects are not available.   G/SCM/N/253/NOR 
 
- 23 - 
 
  5.2  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 production 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 companies, a ll regions and all sectors, but the main target 
groups are farmers and forest owners.   
 
6. Amount of subsidy 
 2011: NOK 79 million. 
2012: NOK 58 million. 
 7. Duration of the subsidy 
 The scheme was established in 2003, and the duration  will be dependent on annual allocations.   
 
8. Trade effects of the subsidy 
 
Statistical information indicating trade effects are not available.    
5.3  TRANSNOVA – Schemes for introduction  of zero and low emission transport 
technologies and transport practice   
1. The authority responsible for the subsidy  
 
The Ministry of Transport and Communications ha s the superior responsibility for the scheme. 
Transnova, which is a project organization within The Norwegian Public Roads Administration, is 
responsible for the administration of the scheme.  
 2. Legislation under which the subsidy is granted  
 
The Annual State Budget.  
 3. Policy objective of the subsidy 
 To help introduce new and "green" transport technologies, for instance renewable fuels, and transport practice. 
 
4. Form of the subsidy  
 Grants/investment support.  
 G/SCM/N/253/NOR 
 
- 24 - 
 
  5. To whom and how the subsidy is provided  
 
Regional and local authorities, private compan ies, NGO's, research institutes and other 
organizations can apply to Transnova for grants. The scheme do not apply to national authorities 
and households/private individual consumers.  
 6. Amount of subsidy  
 In the state budget for 2009, 2010, 2011 and 201 2 the total grants to Transnova were 
respectively NOK 100 mill, NOK 52 mill, NOK 73.2 mill and NOK 74.8 mill. No payments – only commitments were made in 2009. The total payment to projects in 2010, 2011 and 2012 was 
NOK 65.3 mill, NOK 34.4 mill and NOK 64.5 mill.  
 7. Duration of the subsidy  
 Transnova was originally established as a 3 year programme in 2009. In 2012, Transnova was made permanent as one of the policy instru ments to reduce greenhouse gas emissions.  
 
8. Trade effects of the subsidy  
 Statistical information indicating trade effects on CO
2 emissions are not available.   
 
6  ASSISTANCE TO EXPORT PROMOTION 
6.1  Export development programme for SMEs 
1. The Authority responsible for the subsidy 
 
The Ministry of Trade and Industry, through Innovation Norway.  
 
2. Legislation under which the subsidy is granted 
 
 Act no 130 of 19 December 2003 on Innovation Norway. 
 Letter from the Ministry of Trade and Industry to Innovation Norway dated 
3 March 2011 ("Oversendelse av ytterligere reviderte regelverk for Innovasjon Norge"). 
 The Annual State Budget. 
 The scheme is part of a scheme for competence development which was block 
exempted from the State Aid Rules in the EEA-agreement through letter to the EFTA 
Surveillance Authority with summary in formation forms dated 17 December 2010. 
 3. Policy objective of the subsidy 
 
Business development and export promotion of SMEs , with focus on small, highly knowledge- and 
technology based entrepreneurial enterprises with high export potential.   4. Form of the subsidy 
 The Programme for Export Development in SMEs is granted to enhance the competitiveness of Norwegian businesses towards foreign markets. The Programme comprises reduced prices for the 
services of Innovation Norway in connection with market research, surveys, seminars and training. 
 5.  To whom and how the subsidy is provided 
 
Support is granted to small and medium-siz ed, highly knowledge- and technology based 
entrepreneurial enterprises with high export potential.  
6. Amount of subsidy 
 
2011: NOK 15 million. 
2012: NOK 17.1 million. 
 G/SCM/N/253/NOR 
 
- 25 - 
 
  7. Duration of the subsidy 
 
Starting date: 1 February 2002.  Duration: not specified, depending on annual allocations over the state budget.   
 
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects 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.   
 
2.  Legislation under which the subsidy is granted 
 
The Annual State Budget.   
 
3. Policy objective of the subsidy 
 To promote Norwegian exports of goods and services by offering officially supported export credits 
in accordance with the OECD "Arrangement on Offi cially Supported Export Credits" (hereinafter 
called "the OECD Arrangement").    
4. Form of the subsidy 
 
Interest rate support and currency risk alleviation.   
 
5. To whom and how the subsidy is provided 
 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 
 2011: NOK 423 million. 2012: NOK 449 million. 
 
7. Duration of the subsidy 
 Starting date: 1978.  
Duration: not specified, depending on annual allocations over the State Budget.   
 8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.    
6.3  Export Credit Guarantees 
1. The authority responsible for the subsidy 
 
The Norwegian Ministry of Trade and Industry through the Norwegian Export Credit Agency – 
GIEK, which issues the guarantees on behalf of the Norwegian state. 
 2. Legislation under which the subsidy is granted 
 
 Regulations of 14 February 1994.   
 The Annual State Budget and Revised Budget.   
 G/SCM/N/253/NOR 
 
- 26 - 
 
  3. Policy objective of the subsidy 
 
To offer Norwegian exporters guarantees on the same terms and conditions as in other OECD countries. 
 
4. Form of the subsidy 
 
Guarantees. 
 5. To whom and how the subsidy is provided 
 
Available to Norwegian enterprises and banks financing export contracts. 
 The conditions are in accordance with the rules of  the OECD "Arrangements for officially Supported 
Export Credit" and the "Berne Union Understanding". GIEK does not pay out subsidies, only 
indemnification after defaults.  
6. Amount of subsidy 
 
N.a. ref. point 5. The guarantees are issued on behalf of the Norwegian Government. The financial aim of the guarantee scheme is balance in the long term. 
 
7. Duration of the subsidy 
 
Export credit guarantee schemes in different forms have existed since the 1920s. The starting 
point of the schemes operating today was 1994, when GIEK was reorganized. No end point defined. 
 
8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.   
 
6.4  Exemption from electricity tax for en ergy intensive industries, paper and pulp 
industry and greenhouses 
1. The authority responsible for the subsidy 
 
The Ministry of Finance.   
 
2. Legislation under which the subsidy is granted 
 The rates of the electricity tax and the tax concessions are decided by the Parliament during the 
annual budget process. 
 3. Policy objective of the subsidy 
 The electricity tax was introduced 1 July 1951. 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 pulp and paper plants with approved energy efficiency programmes, energy 
intensive processes, and greenhouses.    
Main rules : An excise duty is levied on electricity supplied to manufacturing industries with a rate 
of 0.0045 NOK per kWh for the years below.   G/SCM/N/253/NOR 
 
- 27 - 
 
  Tax concession : Electricity delivered to pulp and paper plants with approved energy efficiency 
programmes, energy intensive processes, and greenhouses are exempt from the tax.   6. Amount of subsidy 
 Expenditure for 2011:  Energy intensive processes:   NOK 139 million.  
The pulp and paper industry:   NOK 18 million.  
Greenhouses:     NOK 1 million.  Expenditure for 2012:  
Energy intensive processes:   NOK 139 million.  
The pulp and paper industry:   NOK 15 million.  Greenhouses:     NOK 1 million. 
 
7. Duration of the subsidy 
 
Starting date: 
 Energy intensive processes:     1 January 1993 The pulp and paper industry:     1 January 1993 
Greenhouses:     1 January 1993 
 8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.    
7  ASSISTANCE TO SPECIFIC INDUSTRY SECTORS 
7.1  Exemptions and reduced rates in the CO
2 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. Legislation under which the subsidy is granted 
 
The tax rates of the CO 2 tax and tax on mineral oil (base-tax on heating oil) and the tax 
concessions are decided by the Parliament during the annual budget process.   
 3. Policy objective of the subsidy 
 
The CO 2 taxes were introduced 1 January 1991 and are 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 apply to  natural gas used in 
offshore activity). The tax on mineral oil (base-tax on heating oil) was introduced 1 January 2000. 
From 1 September 2008 undertakings covered by th e EU Emission Trading Scheme are exempted 
from the CO 2 tax on mineral oil, in order to avoid the use of two economic instruments (tax and 
quota) to reduce the same emissions. Exemptio ns and reduced rates for undertakings covered by 
the EU Emission Trading Scheme are therefore not included in the listed figures for the tax expenditures.   
4. Form of the subsidy 
 
Tax concession. 
 G/SCM/N/253/NOR 
 
- 28 - 
 
  5. To whom and how the subsidy is granted 
 
Tax concessions for the pulp and paper industry and the fish oil and fish meal industries.   
 
(a) CO 2 tax 
 Main rules : An excise duty is levied on mineral oil, natural gas and LPG. In 2011 the CO
2 tax on 
mineral oil was NOK 0.59 per litre and in 2012 the tax was NOK 0.60 per litre. The CO 2 tax on 
natural gas was NOK 0.44 per sm3 in 2011 and NOK 0.45 per Sm3 in 2012. The CO 2 tax on LPG 
was NOK 0.66 per kg in 2011 and NOK 0.67 per kg in 2012.   
Tax concession : Mineral oil used in the fish oil and fish meal industries is subject to a reduced CO
2 
tax rate. The reduced CO 2 tax was NOK 0.31 per litre in 2011 and 2012.  
 
Undertakings covered by the EU Emission Trading Scheme are exempted from the CO 2 tax on 
mineral oil, in order to avoid double regulation. Manufacturing and mining and undertakings covered by the EU Emission Trading Scheme ar e however levied a minimum rate of NOK 0,05 
per Sm
3 natural gas.  
 Vessels used for fishing and hunting are exempted from the CO
2 tax on mineral oil, natural gas 
and LPG. Greenhouses have also been exempted from the CO 2 taxes on natural gas and LPG. 
 
(b) Tax on mineral oil (base tax on heating oil)  
Main rules : An excise duty is levied on mineral oil. In 2011 the tax rate was NOK 0.983 per litre 
and in 2012 the tax was NOK 0.999 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 reduced tax rate was NOK 0.126 NOK per litre in 2011 and 2012.   
Vessels used for fishing and catching and the fish oil and fish meal industries are exempted from 
the tax on mineral oil (base tax on mineral oil).  
6. Amount of subsidy 
 
Expenditure for 2011:   
 
CO2 tax on mineral oil: 
Vessels used for fishing and catching      NOK 196 million. The fish oil and fish meal industries:      NOK 1.1 million.  
 
CO
2 tax on natural gas and LPG 
Industry and mining and undertakings covered by the EU ETS  NOK 600 million. 
Tax on mineral oil (base tax on mineral oil): 
The pulp and paper industry:       NOK 62.5 million.  The production of pigments and colouring agents:    NOK 12.1 million. 
The fish oil and fish meal industries:      NOK 21.2 million. 
 Expenditure for 2012:   
 
CO
2 tax on mineral oil: 
Vessels used for fishing and catching      NOK 221 million. The fish oil and fish meal industries:      NOK 1.5 million. 
 
CO
2 tax on natural gas and LPG 
Manufacturing, mining and undertakings covered by the EU ETS  NOK 600 million. 
 
Tax on mineral oil (base tax on mineral oil): The pulp and paper industry:       NOK 33.4 million.  The production of pigments and colouring agents:    NOK 2.3 million. 
The fish oil and fish meal industries:      NOK 19.8 million. G/SCM/N/253/NOR 
 
- 29 - 
 
  7. Duration of the subsidy 
 
Starting date:  
(a) CO
2 tax:    1 January 1993 
(b) Tax on mineral oil:   1 January 2000  
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.    
7.2  The Press Grant Scheme  
1. The authority responsible for the subsidy 
 
The Ministry of Culture.   
 2. Legislation under which the subsidy is granted 
 The subsidy was introduced in 1969 by a parliamentary decision.   Present legislation: Royal Decree of 7 November 1996 and amendments.    
3.  Policy objective of the subsidy 
 
To promote and maintain a diversified press.  
 
4. Form of the subsidy 
 
Grants.   
 5.  To whom and how the subsidy is provided 
 
The size of the grant is calculated on the basis of each individual newspaper per annum circulation. 
Newspapers with one or more issues per week with an average circulation between 1000 and 6000 copies can apply for grants. In addition, gran ts are given to newspapers in an unfavourable 
market position and with an average circulation of up to 80.000 copies.   
 6.  Amount of subsidy 
 2011: The average amount of subsidy received by the newspapers which were granted support was NOK 1.99 million. The total amount of subsidy granted was NOK 281.3 million and 141 newspapers were given support. However, there is a high level of variation between the 
newspapers in the level of support. 
 2012: The average amount of subsidy received by the newspapers which were granted support 
was NOK 2.08 million. The total amount of subsidy granted was NOK 337.6 million and 
138 newspapers were given support. However, there is a high level of variation between the newspapers in the level of support. 
 
7.  Duration of the subsidy 
 The duration of the scheme has not been specified.   
 
8.  Trade effects of the subsidy 
 
Support is assumed to have no trade effects due to the low level of exports/imports of 
newspapers. G/SCM/N/253/NOR 
 
- 30 - 
 
  7.3  National programmes for the prom otion of Norwegian space industry 
1. The authority responsible for the subsidy 
 
The Ministry of Trade and Industry th rough the Norwegian Space Centre.   
 
2. Legislation under which the subsidy is granted 
 
The Annual State Budget   
 3. Policy objective of the subsidy 
 
Assistance for enterprises that delivers goods or  services to space related programmes including 
programmes administered by the European Sp ace 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 Centre administers the allocation of the grant.    
6. Amount of subsidy 
 
Estimated expenditure for 2011 was NOK 35.0 million. 
Estimated expenditure for 2012 was NOK 40.3 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.  
7.4  Research, development and inno vation in the maritime industry 
1. The authority responsible for the subsidy 
 
The Ministry of Trade and Industry, through Innovation Norway.   
 
2. Legislation under which the subsidy is granted 
 
 Act no 130 of 19 December 2003 on Innovation Norway. 
 Annual State Budget. 
 Letter from the Ministry of Trade and Industry to Innovation Norway dated 
3 March 2011 ("Oversendelse av ytterligere reviderte regelverk for 
Innovasjon Norge"). 
 The scheme was block exempted from the State Aid Rules in the EEA-agreement 
through letter to the EFTA Surveillance Authority with summary information sheets 
dated 17 December 2010.   
 3. Policy objective of the subsidy 
 Strengthen the competitiveness and increase th e value added in the maritime industry by 
stimulating research, development and innovation in the industry.   
 G/SCM/N/253/NOR 
 
- 31 - 
 
  4. Form of the subsidy 
 
Grants.    
5. To whom and how the subsidy is provided 
 
Under this scheme, small, medium sized and large companies are eligible for aid. The core group 
of aid recipients will be undertakings in the maritime industry active e.g. in the markets for 
shipbuilding, ship equipment and related services as well as ship owners.  6. Amount of subsidy 
 2011: NOK 15.3 million. 2012: NOK 13.9 million. 
 
7. Duration of the subsidy 
 
Starting date: 1 January 2006. 
Duration: The scheme is still in operation but is now a part of the National Innovation Scheme. 
 8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.  
8  ASSISTANCE TO THE FISHERY SECTOR 
8.1  Tax allowance 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.  
3.  Policy objective of the subsidy  
 
To sustain competitive net income levels for fishermen. 
 
4.  Form of the subsidy 
 Tax allowance. 
 
5.  To whom and how the subsidy is granted 
 
Each fisherman is entitled to a tax free allowance amounting to 30 per cent of ordinary income 
(ordinary income is a classification for tax purposes of income net of deductions). The allowance is maximum NOK 150 000 per year.  
 
6.  Amount of subsidy 
 The tax allowance for fishermen has an estimated cost of: 
 
2011: NOK 220 million. 2012: NOK 230 million. 
 
7.  Duration of the subsidy 
 
 The tax allowance exists until modified or repealed. 
 G/SCM/N/253/NOR 
 
- 32 - 
 
  8.  Trade effects of the subsidy 
 
Data indicating trade effects are not available.  
8.2  Transport Support 
1. The authority responsible for the subsidy 
 
The Ministry of Fisheries and Coastal Affairs. 
 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 organisations:   
 
 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 Association 
 
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 throughout the year.    
No transport subsidies have been granted to the fish farming industry.   
 6. Amount of subsidy 
 Balanced budget for 2011: NOK 33 million.   Balanced budget for 2012: NOK 33 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. 
 8.3  Support to the Modernisation and Ca pacity Adjustment of the Fishing Fleet; 
Decommissioning Grant – The Structural Fund 
1. The authority responsible for the subsidy 
 
The Ministry of Fisheries and Coastal Affairs through Innovation Norway.   
 G/SCM/N/253/NOR 
 
- 33 - 
 
  2. Legislation under which the subsidy is granted  
 
The State budget and the Regulation of 30 June 2003 for the Structural Fee and the Structural 
Fund for the decommissioning of fishing vessels: A five-year Structural fund for decommissioning 
on vessels below 15 meters was implemented in 2003. The fund was partly financed by the fleet 
itself through a fee imposed on the first hand value of catch.    
3. Policy objective of the subsidy  
 
Capacity reduction.    
4. Form of the subsidy  
 
Decommissioning grant from the Structural Fund.   
 
5.  To whom and how the subsidy is provided  
 
The decommissioning grant is given directly to the ship owner.   
 6. Amount of subsidy  
 
2010: Phased out.  
 7. Duration of the subsidy  
 
Original duration: 30 June 2003 - 30 June 2008. Payments made in 2009 were due to remaining funds from previous years. The decommissioning grant programme was terminated in 2008 and is 
no longer in effect. 
 8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available. 
 8.4  Sealing 
1. The authority responsible for the subsidy 
 
The Ministry of Fisheries and Coastal Affairs.   
 
2. Legislation under which the subsidy is granted 
 The Annual State Budget.   
 
3. Policy objective 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 2011: NOK 10.5 million.   
Balanced budget 2012: NOK 5.6 million.   
 G/SCM/N/253/NOR 
 
- 34 - 
 
  7. Duration of the subsidy 
 
Duration has not been specified.    
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   
 
9  ASSISTANCE TO FORESTRY SECTOR 
9.1  The Forest Fund Scheme 1. The authority responsible for the subsidy 
 
The Ministry of Agriculture and Food and the Ministry of Finance.    
2. Legislation under which the subsidy is granted 
 
The Wealth and Income Tax Act, No 14 of 26 March 1999.   
 
The Forest 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.   
 
3. Policy objective of the subsidy 
 
The objective is to promote sustainable utilisation of forest resources. Due to the particular 
circumstances in the forest sector caused by the long production period, forest owners are conceded tax benefits to promot e long-term forest investments. 
 
4. Form of the subsidy 
Tax concessions.   
 
5. To whom and how the subsidy is provided 
 
Forestry income is in principle being taxed as other economic activities. Norwegian forest owners 
are however subject to two special tax schemes. 
 The Forest fund is a mandatory forest investment scheme. The Forestry Act requires all forest 
owners to place into the fund from 4 to 40 per ce nt of the gross sales 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 fund account. The money may be used for specified forestry investments. The amount deposited is not considered as taxable income at the time of 
deposit. 
 Long-range forest investments may be fully deducted on the income tax return for the year the 
investment is made. 15 per cent of the amount  disbursed from the fund account for this 
investment is considered as taxable income the year the disbursement is made. The tax treatment entails that the forest owner receives an interest free tax credit and that 85 per cent of the forest 
owner’s deposit on the forest fund is not taxed.   
 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.   
 
Average tax assessment: The yearly income tax for the forest owner is based on the last 5 years average income. The marginal tax may thus be re duced compared to other income groups, where 
the single last year income is the basis for taxation. The system implies that the forest owner 
receives a tax credit. The cost of this tax concession is not estimated.  G/SCM/N/253/NOR 
 
- 35 - 
 
  6. Amount of subsidy 
 
Estimated cost of the forest funds tax concession is:  
2011: NOK 140 million. 
2012: NOK 140 million.  
7. Duration of the subsidy 
 
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. 
 
9.2  Subsidies for Forest Management Planning 
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 
 Regulation on grants for forest management planning with environmental registration of 
4 February 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 including:   
 Active short and long term utilisation of the forest resources. 
 Preservation 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 all categories of fore st owner and all types of operationally productive 
forestland. Provided a given area coverage of pre-ordered individual forest management plans, the grant covers resource registration surveys of la rger designated areas and preparation of forest 
management plans on individual properties. Area registrations provide data for forest inventory 
and resource overviews. The programme also suppo rts capacity building on application of the 
forest management plan. 
 
The sizes of the grants are decided by the county governor based on the total resource registration and plan preparation costs. Normally, subsidies ar e not granted to properties that have received 
grants from this programme wi thin the last 10-year period. 
 
6. Amount of subsidy 
 
Total subsidy expenditure for 2011: NOK 21.4 million. 
Total subsidy expenditure for 2012: NOK 19.9 million   
7. Duration of the subsidy 
 
Starting date: 1971. Duration is not specified.   G/SCM/N/253/NOR 
 
- 36 - 
 
  8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.    
9.3  Subsidies for industrial and environmental purposes in forestry 
1. The authority responsible for the subsidy 
 
The Ministry of Agriculture and Food through the County Governor and local authorities.  
 2. Legislation under which the subsidy is granted 
 
Regulation on grants for industrial and environm ental 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, 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 and 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 
authorities 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 enhancement of en vironmental values in forest and harvesting of 
round wood in difficult terrain. The subsidy rates are determined by local authorities.   
 
6. Amount of subsidy 
 2011: NOK 119 million.   
2012: NOK 142 million.   
 7. Duration of the subsidy 
 Duration is not specified.    
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.    
9.4  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 scheme is funded through the Annual State Budget.    G/SCM/N/253/NOR 
 
- 37 - 
 
  3. Policy objective of the subsidy 
 
The policy objective is to develop infrastructure necessary to uphold the forest activity in marginal forest areas. The grants are mainly aimed at timber quays and larger infrastructure projects.  
 
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 
 
2011: NOK 2.9 million.   
2012: NOK 4.9 million.   
 7. Duration of the subsidy 
 
Starting date: 1976.   
Duration is not specified.  
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   
 
9.5  Subsidies for the production of energy wood 
1.  The authority responsible for the subsidy 
 
Norwegian Agricultural Authority on behalf of the Ministry of Agriculture and Food. 
 2.  Legislation under which the subsidy is granted 
 Regulation on grants for industrial and environm ental purposes in forestry of 4 February 2004, 
founded on the Forestry Act of 2005. 
 
3. Policy objective of the subsidy  
 Increased domestic production of wood energy is an important goal for the Government. The 
Government aims at an increase in bioenergy production of 14 TWh by 2020 to reduce the 
emissions from fossil fuel. The scheme improves  the conditions for producing wood energy. 
 
4.  Form of the subsidy 
Grants. 
 
5. To whom and how the subsidy is provided 
The grant is available for forest owners and owners of agricultural property. 
 6. Amount of subsidy 
2011: NOK 29.1 million. 
2012: NOK 35.3 million.  
7. Duration of the subsidy 
 
Depending on annual allocations. 
 G/SCM/N/253/NOR 
 
- 38 - 
 
  8. Trade effects of the subsidy 
Statistical data indicating trade effects are not available. 
 10  THE AGRICULTURAL SECTOR 
10.1  Tax allowance to farmers 
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. 
 3.  Policy objective of the subsidy 
 To contribute positively to a viable farming population and to domestic agricultural production.  
4.  Form of the subsidy 
 
Tax allowance  
5.  To whom and how the subsidy is provided 
 
Each farmer is entitled to a tax allowance of NOK 63 500, plus 30 per cent of ordinary income (tax 
definition of certain net income), derived from farming, until the allowance reaches the maximum 
of NOK 150 000.  
6.  Amount of subsidy 
 
Estimated cost of this tax concession is:  
2011: NOK 845 million. 
2012: NOK 1 030 million.  
7.  Duration of the subsidy 
 
The tax allowance exists until modified or repealed. 
 
8.  Trade effects of the subsidy 
 Data indicating trade effects are not available. 
 
10.2  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 Agricultural Policy and of agricultural subsidy programmes. The 
notification is in line with previous notifications on Agriculture by Norway to the Committee on Subsidies and Countervailing Measures.   
 
Reference is also made to the notifications on domestic support provided to the Committee on Agriculture.    
10.3  Information on the subsidy programmes 
The various programmes are listed under the sub headings 10.2.1 to 10.2.7 below. The notification 
covers schemes in force from 1 January 2010 until 31 December 2011. Numbers for 2012 were not 
available at the time of writing. Norwegian agricultural policy is implemented in pursuit of 
objectives concerning i.a. income, productivity, regional development, the agricultural landscape G/SCM/N/253/NOR 
 
- 39 - 
 
  and environmental concerns. The three latter objectiv es and the multifunctional role of agriculture 
in general, have been given higher priority during recent years.    Target prices for farm products and the fiscal support to be accorded to agriculture are laid down 
in the annual Agricultural Agreement between the farmers' unions and the Government. The 
Agricultural Agreement is subject to ratificati on and appropriation of budget funds by the 
Norwegian Parliament. Allocations in the Agricultural Agreement are made under Chapter 1150, 
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. For the various sectors the 
below mentioned support schemes apply. Direct  payments, of which a significant part is 
differentiated by region, size of fa rms, arable land and number of animals, play a significant role.   
 
10.3.1   The milk sector 
Milk production is of vital importance in several rural regions as alternative forms of agricultural 
production are scarce. There is a major policy objective to secure employment and economic 
activity in the countryside, maintenance of agricultural landscape, and to fulfil national food 
security policies including protecting arable land an d securing a decentralised production structure.   
 Since 1 July 2002, base deficiency payments are gr anted for goat milk only. In addition, regional 
deficiency payments apply to rural areas. The defi ciency payments are paid for each litre of milk 
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 more than 5 cows or 27 goats for milk production. 
The objective of the programme is to equalise income between larger and smaller holdings.   
10.3.2  The meat and egg sectors 
Producers of meat from bovine animals, veal an d mutton receive a base deficiency payment on all 
output. Producers of beef cattle also receive structural income support. In addition a deficiency payment is provided to secure producer prices 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 nort hernmost county in Norway. Transport support is 
granted to equalise farm gate return due to di fferences 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.    
10.3.3  The grain sector 
The Grain Price Support Programme aims at securing the sale of Norwegian grain and to reduce 
the prices on raw materials for flour and for feed purposes.    
10.3.4  Potatoes and horticultural products 
Regional deficiency payments are provided to prod uction of fruit, berries and vegetables. In the 
horticultural sector some transport support and storage support is also provided.   
 
10.3.5  Headage and Acreage support 
A major part of the budgetary support is paid within the Acreage and Agricultural Landscape 
Scheme, the Grazing Support Programme and th e Headage Support Programme. The support is 
based on the size of cultivated area and the num ber of animals, and the support is differentiated 
by region, farm size and kind of animal. Certain environmental criteria have to be fulfilled in order to receive support. In animal husbandry there is a maximum level of support per farm. The 
maximum level of support varies according to changes in rates. In plant production the level of 
support is dependent on the size of cultivated area. Organic production is subject to separate 
support programmes.   
 G/SCM/N/253/NOR 
 
- 40 - 
 
  10.3.6  Vacation and replacement 
To enable livestock farmers to have sufficient holi days and time off they are refunded expenses for 
hiring relief personnel under the Vacation and Replacement Scheme. Eligible farmers must have an approved substitute scheme and expenses must be documented.   
 
10.3.7  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 equalise prices to 
producers and consumers in different regions and to  secure supply of agricultural products in all 
regions of the country.    
10.4  Expenditures and market structure 
Deficiency payments, the structural income support, the acreage and headage support as well as 
the Vacation and Replacement Scheme are gran ted directly to farmers. The rest of the 
programmes are market regulation schemes and other indirect schemes.   
 The amounts of support measured by total bu dget expenditures for 2010 and 2011 are listed in 
tables 1 to 5 below. All numbers are account figures. The source is mainly Proposition No 1 (2009-
2010) and (2010-2011) to the Norwegian Parliament by the Ministry of Agriculture and Food, the 
Norwegian Agricultural Authority (SLF) and the Norwegian Agricultural Economics Research Institute. Tables 1 to 10 provide updated informatio n on Agricultural Support in Norway as well as 
market information on major agricultural commodities.   
 In Table 1 Price Support and Other direct paymen ts 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 
 
 2010 2011 
Agricultural Development Fund 1131.4 1197.2 
Market Regulation  20.9 18.9 
Price Support  2337.9 2259.1 
Other direct payments to producers 7703.7 7979.3 
Total 11193.9 11454.5 
 
Table 2 
Chapter 1150, Price Support 
Million NOK 
 
 2010 2011 
Milk and Milk Products 588.2 537.0 
Beef, veal, mutton and pork 759.4 771.9 
Cereals  551.2 544.2 
Egg 12.7 13.3 
Potatoes, fruit and vegetables 79.5 97.5 
Wool 139.1 128.0 
Other 207.8 167.2 
Total 2337.9 2259.1 
 G/SCM/N/253/NOR 
 
- 41 - 
 
  Table 3 
Chapter 1150, other direct payments to producers 
Million NOK 
 
 2010 2011 
Structural income support  1090.5 1183.0 
Headage support, animals  2181.3 2238.8 
Grazing support 616.1 695.7 
Acreage and cultural landscape scheme  3498.0 3527.6 
Support to organic production 115.7 122.7 
Production support on market crops 31.1 34.7 
Other 171.0 176.8 
Total 7703.7 7979.3 
 
 
Table 4 
Base deficiency payment, amount per unit 
(NOK per litre/kg) 
 
 2010 2011 
Mutton 3.81 3.81 
 
 
Table 5 
Regionally deficiency payments, amount per unit 
(NOK per litre/kg) 
 
 2010 2011 
Milk6 0.00/1.75 0.00/1.75 
Meat7 0.00/13.50 0.00/13.50 
 
The schemes in tables 1-5 are the result of the annual Agricultural Agreement between the 
farmers' unions and the Government. The agreement is subject to ratification by the Norwegian 
Parliament. While the framework usually does not ch ange from one year to another, there is an 
ongoing process of review and evaluation of the programmes.   
 
An assessment of the trade effects of the subsidie s is not available. Below however, are statistics 
on production, consumption, imports and export s of the major agricultural commodities.   
 
 
Table 6 
Cow's milk 
 
Year Received by diaries Consumption 
million kg 
Million litres Whole, low-fat and 
skimmed milk Cream and sour 
cream 
2010 1506 504 36 
2011 1476 496 40 
 
 Sources:  Budget Committee for Agriculture, aggregate accounts (Budsjettnemda for Jordbruket – Jordbrukets 
totalregnskap).   
 
 
                                               
6 10 zones, varying rates, lo west and highest cited.   
7 5 zones, varying rates, lowest and highest cited (varies also for kind of meat).   G/SCM/N/253/NOR 
 
- 42 - 
 
  Table 7 
Cheese (million kg) 
 
Year Production Exports Imports Consumption 
2010 89.1 13.5 9.6 85.2 
2011 84.1 14.0 10.9 81.0 
 
 Sources:  Production and consumption: Budget Committee for Agriculture, aggregate accounts (Budsjettnemda for 
Jordbruket – Jordbrukets totalregnskap). Exports/Import: External Trade, Statistics Norway (Statistisk Sentralbyrå).   
 
Table 8 
Butter (million kg) 
 
Year Production Exports Imports Consumption 
2010 16.8 2.2 0.1 14.7 
2011 14.7 0.5 2.0 16.2 
 
 Sources:  Production and consumption: Budget Committee for Agriculture, aggregate accounts (Budsjettnemda for 
Jordbruket – Jordbrukets totalregnskap). Exports/Imports: External Trade, Statistics Norway (Statistisk Sentralbyrå).   
 
 
Table 9 
Cereals (million kg)8 
 
Year Production Imports Exports Consumption Wheat 
2010 324.0 384.1 0.0 461.5 
2011 288.0 411.3 0.9 507.1 
 
Year Production Imports Exports Consumption Rye 
2010 34.0 14.0 0.0 39.0 
2011 17.0 14.9 0.2 34.0 
 
Year Production Imports Exports Consumption Barley 
2010 552.0 21.2 0.2 494.2 
2011 498.0 48.0 0.1 569.0 
 
Year Production Imports Exports Consumption Oats 
2010 301.0 30.8 0.0 272.1 
2011 236.0 8.5 0.0 305.6 
 
 Sources:  Production: Budget Committee for Agriculture, aggregate accounts (Budsjettnemda for Jordbruket – 
Jordbrukets totalregnskap). Exports/Imports: External Trade, Statistics Norway (Statistisk Sentralbyrå). Consumption: Norwegian Agricultural Authorities (SLF).   
 
 
Table 10 
Meat (million kg)9 
 
Year Production Imports Exports Consumption Beef and Veal 
2010 83.2 5.4 0.2 91.3 
2011 81.7 10.4 0.1 94.5 
 
                                               
8 Consumption figures may differ from production + im port - export figures, du e to changes in stocks 
and storing losses.  Figures of import and export are based on External Trad e Statistics by Statistics Norway.   
9 Consumption figures may differ from production + impo rt - export figures due to changes in stocks.   G/SCM/N/253/NOR 
 
- 43 - 
 
  Year 
Production Imports Exports Consumption Lamb 
2010 24.6 1.3 0.0 26.5 
2011 23.5 1.5 0.0 25.0 
 
Year Production Imports Exports Consumption Pork 
2010 128.8 2.2 5.4 124.7 
2011 130.8 2.4 4.6 130.6 
 
Year Production Imports Exports Consumption Poultry 
2010 83.1 0.7 1.6 81.8 
2011 84.7 0.9 1.3 86.1 
 
 Sources:  Production and consumption: Budget Committee for Agriculture, aggregate accounts (Budsjettnemda for 
Jordbruket – Jordbrukets totalregnskap). Exporst/imports: Changes and trends in Norwegian diet (Utviklingen i norsk kosthold, Sosial og helsedirektoratet).   
 
 
Table 11 
Eggs (million kg)10 
 
Year Production Imports Exports Consumption 
2010 60.3 0.2 1.3 58.2 
2011 60.0 1.7 1.3 60.1 
 
 Sources:  Production and consumption: Budget Committee for Agriculture, aggregate accounts (Budsjettnemda for 
Jordbruket – Jordbrukets totalregnskap). Exports/Import:  xternal Trade, Statistics Norway (Statistisk Sentralbyrå).   
 
 
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10 Consumption figures may differ from production + im port - export figures du e to changes in stocks.