G/SCM/N/315/NOR  
 
11 December 2017  
(17-6777) Page: 1/23 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1  
OF THE GATT 1994 AND AR TICLE 25 OF THE AGRE EMENT  
ON SUBSIDIES AND COUNTE RVAILING MEASURES  
NORWAY  
The following communication, dated 6 December 2017, is being circulated at the request of the 
Delegation of Norway.  
 
_______________  
 
 
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TABLE OF CONTENT  
 INTRODUCTION  ................................ ................................ ................................ ..........  3 1  
 ASSISTANCE TO RESEAR CH AND DEVELOPMENT S CHEMES  ................................ .........  3 2  
2.1 The Wood -based Innovation Scheme  ................................ ................................ ............  3 
2.2 The Bioenergy Scheme  ................................ ................................ ...............................  3 
 ASSISTANCE TO DISADV ANTAGED REGIONS  ................................ ...............................  4 3  
3.1 Regional transport aid  ................................ ................................ ................................ . 4 
3.2 Regional Investment Grant and Risk Loans  ................................ ................................ .... 5 
3.3 Regional Development Aid Scheme  ................................ ................................ ...............  6 
3.4 Aid scheme for economic development in Svalbard  ................................ .........................  7 
4 ASSISTANCE TO SPECIF IC INDUSTRY SECTORS  ................................ ......................  7 
4.1 The Press Grant Scheme  ................................ ................................ .............................  7 
4.2 National programmes for the promotion of Norwegian space industry  ...............................  9 
5 GENERAL MEASURES  ................................ ................................ ...............................  9 
5.1 Exemptions and reduced rates in the CO2 taxes and in the tax on mineral oil (base 
tax on mineral oil)  ................................ ................................ ................................ ...............  9 
6 ASSISTANCE TO THE FI SHERY SECTOR  ................................ ................................ . 12 
6.1 Transport Support  ................................ ................................ ................................ .....12 
6.2 Sealing  ................................ ................................ ................................ .................... 12 
7 ASSISTANCE TO FORESTRY SECTOR  ................................ ................................ ...... 13 
7.1 The Forest Trust Fund Scheme  ................................ ................................ .................... 13 
7.2 The Timber Account  ................................ ................................ ................................ ...14 
7.3 Subsidies for Forest Management Planning  ................................ ................................ ...15 
7.4 Subsidies for industrial and environmental purposes in forestry  ................................ ......16 
7.5 Subsidies for Forest Infrastructure ................................ ................................ ............... 16 
8 THE AGRICULTURAL SEC TOR ................................ ................................ .................  17 
8.1 Introduction to subsidies on the expenditure side of  the budget  ................................ ......17 
8.2 Information on the subsidy programs  ................................ ................................ .......... 17 
8.2.1  The milk sector  ................................ ................................ ................................ .....17 
8.2.2  The meat and egg sectors  ................................ ................................ ...................... 18 
8.2.3  The grain sector  ................................ ................................ ................................ ...18 
8.2.4  Potatoes and horticultural products  ................................ ................................ ......... 18 
8.2.5  Headage support  ................................ ................................ ................................ ..18 
8.2.6  National environmental program  ................................ ................................ ............. 18 
8.2.7  Vacation and replacement  ................................ ................................ ...................... 19 
8.2.8  Market regulation ................................ ................................ ................................ ..19 
8.3 Expenditures and market structure  ................................ ................................ .............. 19 
 
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  INTRODUCTION  1  
This report covers state aid programmes and schemes that were in operation in 2015 and 2016. 
The amount of subsidies which are reported, refer to actual payments in the fis cal years  2015 and 
2016. As regards the agricultural sector, the notification covers schemes in force from 
1 January  2014 and until 31 December 2015, as numbers for 2016 were not available at the time 
of writing.  
 
Through Norway's participation in the Euro pean Economic Area (EEA), Norwegian legislation, under 
which subsidies are granted, is consistent with the legislation of the European Union (EU). 
However, agriculture and fisheries are not part of the EEA Agreement.  
 
ASSISTANCE TO RESEAR CH AND DEVELOPMENT  SCHEMES  2  
2.1 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 through research, development and innovation, as a 
renewable material with lower impact on the environment and to increase the utilisation of wood 
as an environmentally friendly al ternative 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 the wood industry, and research and development 
institutions which cooperate with enterprises.  
 
The scheme is open to all regions and all sectors, as long as the project contributes to the 
objective of the scheme.  
 
6. Amount of subsidy  
 
2015: NOK 27.6 million.  
2016: NOK 19.5 million.  
 
7. Duration of the subsidy  
 
The scheme was established in 2006, and ended on 31 December 2016.  
 
8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available.  
 
2.2 The Bioenergy Scheme  
1. The authority r esponsible for the subsidy  
 
Administered by Innovation Norway on behalf of the Ministry of Agriculture and Food.  
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  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 type s of companies, all regions and all sectors.  
 
6. Amount of subsidy  
 
2015: NOK 59.9 million.  
2016: NOK 65.5 million.  
 
7. Duration of the subsidy  
 
The scheme was established in 2003, and the duration is dependent on annual allocations.  
 
8. Trade effects of t he subsidy  
 
Statistical information indicating trade effects are not available.  
 
ASSISTANCE TO DISADV ANTAGED REGIONS  3  
3.1 Regional transport aid  
1. The authority responsible for the subsidy  
 
The Ministry of Local Government and Modernisation, the County Municipalities of Sør -Trøndelag, 
Nordland and Troms.  
 
2. Legislation under which the subsidy is granted  
 
The Annual State Budget.  
Regulation on eligible areas for investment aid and transport a id (FOR -2014-06-17-807)1. 
Regulation on regional aid funds (FOR -2013-12-11-1574)2 with guidelines3. 
 
3. Policy objective of the subsidy  
 
Stimulate economic growth in less developed areas by means of reducing the competitive 
disadvantages caused by long distances, difficult transport conditions and scattered population.  
 
4. Form of the subsidy  
 
Grants.  
 
                                                
1 Regulation of 1.7.2014.  
2 Regulation of 1.1.2014.  
3 Reviewed guidelines in effect from 1.1.2015.  G/SCM/N/315/NOR  
 
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  5. To whom and how the subsidy is provided  
 
The purpose of the scheme is to offset additional transport costs of firms located in the low 
population density areas of Norway. Additional transport costs are the extra costs occasioned by 
movements of goods within the borders of Norway. Under the scheme aid is granted in relation to 
transport from places within the area of finished or semi -finished goods t hat have undergone 
significant processing within the eligible area. The aid is granted ex -post on the basis of verifiable 
incurred transport costs.  
 
6. Amount of subsidy  
 
2015 NOK 16.9 million  
2016: NOK 14.5 million  
 
7. Duration of the subsidy  
 
31.12.2020  
 
8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available.  
 
3.2 Regional Investment Grant and Risk Loans  
1. The authority responsible for the subsidy  
 
Innovation Norway on behalf of The Ministry of Local Government and Moder nisation.  
 
2. Legislation under which the subsidy is granted  
 
- Act no. 130 of 19 December 2003.  
- Regulation on regional aid funds (FOR -2013-12-11-1574)4 with guidelines5. 
- Regulation  of May 2003 on Investment aid and geographical delimitation of areas eligible for 
regional aid.6 
- The Annual State Budget.  
 
3. Policy objective of the subsidy  
 
Regional aid; job creation, contribute to develop permanent and profitable businesses in areas w ith 
special employment problems or a low level of economic activity.  
 
4. Form of the subsidy  
 
Grants and loans.  
 
5. To whom and how the subsidy is provided  
 
The program provides support for specific applications, and is available for enterprises in all 
sectors except for: enterprises in primary sector in agriculture forestry and fishery which are 
currently receiving state aid; insurance, bank and finance; oil and gas exploration; public 
administration; and public commercial enterprises.  
 
The Ministry of Local Government and Modernization allocates funding for the county authorities 
for use on loan and grant schemes in areas with special employment problems or a low level of 
economic activity. The county authorities decide how much will be allocated for such instruments 
within their own region. The allocation from the county authorities is transferred to Innovation 
                                                
4 Regulation of 1.1.2014.  
5 Reviewed guidelines in effect from 1.1.2015.  
6 Reviewed regulation in effect as of 2014 (FOR -2014-06-17-807).  G/SCM/N/315/NOR  
 
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  Norway for decisions on approval or rejection o f applications from enterprises located in the 
corresponding county.  
 
The decision to approve or reject a given application is based on the assessment of Innovation 
Norway.  
 
In the assisted area, the maximum aid intensity is 15% of the investment costs for  large 
enterprises (250 employees or more), 25% for medium sized enterprises (50 -249 employees), and 
35% for small enterprises (up to 49 employees).  
 
6. Amount of subsidy  
 
2015: NOK 220 million.  
2016: NOK 192 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.  
 
3.3 Regional Development Aid Scheme  
1. The authority responsible for the subsidy  
 
Innovation Norway on behalf of The Mi nistry of Local Government and Modernisation.  
 
2. Legislation under which the subsidy is granted  
 
Act no. 130 of 19 December 2003.  
Regulation on regional aid funds (FOR -2013-12-11-1574) with guidelines  of January 2015.  
Regulation on eligible areas for inve stment aid and transport aid (FOR -2014-06-17-807).  
The Annual State Budget.  
 
3. Policy objective of the subsidy  
 
Stimulate development of undertakings within the regional assisted areas.  
 
4. Form of the subsidy  
 
Grants.  
 
5. To whom and how the subsidy is provide d 
The Ministry of Local Government and Modernization allocates funding for the county authorities 
for use on loan and grant schemes in areas with special employment problems or a low level of 
economic activity. The count y authorities decide how much will be allocated for such instruments 
within their own region. The allocation from the county authorities is transferred to Innovation 
Norway for decisions on approval or rejection of applications from enterprises located in the 
corresponding county.  
 
6. Amount of subsidy  
 
2015: NOK 230 million.  
2016: NOK 212 million.  
 
7. Duration of the subsidy  
 
Not specified.  
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  8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available.  
 
3.4 Aid scheme for econom ic development in Svalbard  
1. The authority responsible for the subsidy  
 
Innovation Norway on behalf of the Ministry of Trade, Industry and Fisheries.  
 
2. Legislation under which the subsidy is granted  
 
Act no. 130 of 19 December 2003 on Innovation Norway.  
Letter from the Ministry of Trade, Industry and Fisheries to Innovation Norway dated 20  June 2016 
(Regelverk for tilskudd til næringstiltak på Svalbard).  
 
3. Policy objective of the subsidy  
 
The objective is to stimulate new economic development in Svalba rd. 
 
4. Form of the subsidy  
 
Grants.  
 
5. To whom and how the subsidy is provided  
 
The scheme applies to all companies and sectors, including services, based in Svalbard and 
registered in the Norwegian Brønnøysund Register Center.  
Interested businesses has to apply to Innovation Norway.  
Aid is granted on the condition that aid is necessary to start up and realise a new project . 
 
6. Amount of subsidy  
 
2015: NOK 20 million.  
 
7. Duration of the subsidy  
 
Starting date: 1 January 2015.  
Duration : Not specified, depending on annual allocations over the state budget. Parliament has 
only once approved funding for this scheme, and that was in 2015.  
 
8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available.  
 
4 ASSISTANCE TO SPECIF IC INDUSTRY SECTORS  
4.1 The Press Grant Scheme  
1. The authority responsible for the subsidy  
 
The Ministry of Culture.  
 
2. Title of the subsidy  programme  
Production grants for news and current affairs media.  
3. Period covered by the notification  
2016.  G/SCM/N/315/NOR  
 
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  4. Policy objective and/or purpose of the subsidy  
Production grants shall stimulate diversity in news and current affairs media characterised by high 
quality and independent journalism, including media in markets that are too small to be 
sustainable and alternatives  to the leading media in major markets.  
5. Background and authority for the subsidy  
The scheme was first introduced in 1969 by a parliamentary decision.  
Present legislation: Regulations on production grants for news and current affairs media, adopted 
by the Norwegian Ministry of Culture 25 March 2014.  
The regulations replaced previous regulations of 7 November 1996. The purpose of the new aid 
scheme was to provide for platform -neutral measures, thereby accommodating the scheme to 
current technological devel opments and facilitating the press' transition to digital publishing.  
6. Form of the subsidy  
Grants.  
7. To whom and how the subsidy is provided  
Grants are given to media which:  
(1) Have as their primary objective to engage in journalistic production and the di stribution of 
news, current affairs and social debate to the general public.  
(2) Contain a broad range of news, current affairs and debate content from different areas 
of society . 
(3) Have an editor in chief   
(4) Receive genuine payment for news, current affairs and d ebate content, and advertising, 
according to a publicly available price list   
(5) Sell at least half of their approved net circulation through subscription.  
Further conditions are stipulated in section 3 to 8 in the regulations.  
There are two main groups of re cipients:  
(1) Leading and sole media (media which do not have larger competitors at the publishing 
site) receive a fixed base grant and a fixed amount for each edition (newsprint or 
electronic) beyond one weekly publication.  
(2) Secondary media (media which have a  competitor with a larger circulation at the 
publishing site) receive grants calculated on the basis of per annum circulation (newsprint 
or electronic). The grants are based on three different grant rates reflecting the medium's 
competitive position: Rate 1: Nationwide media, Rate 2: Media in large cities (Oslo, 
Bergen, Stavanger and Trondheim), Rate 3: Other media.  
8. Subsidy per unit  
The grant per unit varies greatly i.a. according to the number of weekly editions, annual circulation 
and competitive posit ion, see above. The grant amounted to a total of 313 million NOK in 2016, 
and was divided between 151 different news media as follows:  
Nationwide secondary media  157.9 million NOK  
Other secondary media  65.6 million NOK  
Leading and sole media  76.7 million  NOK 
Nationwide weekly media  12.9 million NOK  
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  9. Duration of the subsidy  
The duration of the scheme is maximum six years (time limit set by the EFTA Surveillance 
Authority).  
 
10. Statistical data permitting an assessment of the trade effects of the subsidy  
Support is assumed to have no trade effects due to the low level of exports/imports of 
newspapers.  
 
4.2 National programmes for the promotion of Norwegian space industry  
1. The authority responsible for the subsidy  
 
The Ministry of Trade and Industry t hrough 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 Space Agency (ESA). The programme seeks to 
increase the spin -off effects of the Norwegian membership in ESA.  
 
4. Form of the subsidy  
 
Grants.  
 
5. To whom and how the subsidy is provided  
 
The grant is eligible for all enterprises that develop space related goods and services. The 
Norwegian Space Centre administers the allocation of the grant.  
 
6. Amount of subsidy  
 
Estimated expenditure for 2015 was NOK 24.2 million.  
Estimated expenditure for 2016 was NOK 24.9 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.  
 
5 GENERAL MEASURES  
5.1 Exemptions and reduced rates in the CO2 t axes 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 mineral oil) and the tax 
concessions are decided by Parliament during the annual budget process.  G/SCM/N/315/NOR  
 
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  3. Policy objective of the subsidy  
 
The CO 2 tax was introduced 1 January 1991 and the standard rate is high compared t o similar 
taxes that have been established or proposed in other countries. From 1 September 2010 the CO 2 
tax also applies to natural gas and LPG used on the mainland (CO 2 taxes already applied to natural 
gas used in offshore activity). Norway applies a hig h CO 2 tax on fossil fuels in order to stimulate 
the use of alternatives that are more environmental friendly. However, in some sectors there are 
no alternatives to use fossil fuels, and these sectors have a reduced CO 2 tax rate or are exempted 
completely.  
 
From 1  September  2008 undertakings covered by the EU Emission Trading Scheme (EU ETS) are 
exempted from the CO 2 tax on mineral oil, in order to avoid the use of two economic instruments 
(tax and quota) to reduce the same emissions. The exemption for miner al oil for undertakings 
covered by the EU ETS is therefore not included in the listed figures for the tax expenditures.  
 
The tax on mineral oil (base -tax on mineral oil) was introduced 1 January 2000. The objective of 
the tax was to avoid a switch in energ y use from electricity to mineral oil when the electricity tax 
was increased from 1 January 2000. Sectors where electricity was not a substitute to mineral oil 
were charged a reduced rate or exempted.  
 
4. Form of the subsidy  
 
Tax concession.  
 
5. To whom an d how the subsidy is granted  
 
(a) CO2 tax 
 
Main rules : An excise duty is levied on mineral oil, natural gas and LPG. In 2015 the CO 2 tax on 
mineral oil was NOK 0.90 per litre and in 2016 the tax was NOK 0.92 per litre. The CO 2 tax on 
natural gas was NOK 0. 82 per Sm3 in 2015 and NOK 0.84 per Sm3 in 2016. The CO 2 tax on LPG 
was NOK 1.23 per kg in 2015 and NOK 1.26 per kg in 2016.  
 
Tax concession : 
Mineral oil used in vessels for fishing and catching in inshore waters are subject to a reduced CO 2 
tax. The reduc ed CO 2 tax was NOK 0.27 per litre in 2015 and NOK 0.28 per litre in 2016.  
 
Mineral oil used in the fish oil and fish meal industry is subject to a reduced CO 2 tax rate. The 
reduced CO 2 tax was NOK 0.31 per litre in 2015 and 2016. The Government has propose d to 
terminate this reduced rate from 1 January 2018.  
 
Natural gas and LPG used in commercial greenhouses are exempted from the CO 2 tax. 
 
Natural gas and LPG used in freight and passenger transport in domestic shipping and offshore 
vessels are exempted from the CO 2 tax. The Government has proposed the termination of this 
exemption from 1 January 2018.  
 
Natural gas and LPG used in manufacturing and mining is levied CO 2 tax at a reduced rate. The 
reduced rate for natural gas was NOK 0.05 per Sm3 in 2015 and NOK 0.057 per Sm3 in 2016 and 
the rate for LPG was nil both in 2015 and 2016. The Government has  proposed to terminate these 
reduced rates from 1 January 2018  for undertakings not covered by the EU Emission Trading 
Scheme.  
 
(b) Base tax on min eral oil  
 
Main rules : 
An excise duty is levied on mineral oil. In 2015 the tax rate was NOK 1.59 per litre and in 2016 the 
tax was NOK 1.63 per litre.  
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  Tax concession : 
For the usage of mineral oil in the pulp and paper industry and in the production of pig ments and 
colouring agents a reduced tax rate is applied . The reduced tax rate was NOK  0.126 NOK per litre 
in 2015 and NOK 0.147 per litre in 2016.  
 
Freight and passenger transport in domestic shipping, vessels used for fishing and catching and 
the fish oi l and fish meal industry are exempted from the base tax on mineral oil.  
 
6. Amount of subsidy  
 
Expenditure for 2015:  
 
CO2 tax on mineral oil:  
Vessels used for fishing and catching  NOK 120 million.  
Fish oil and fish meal industry:  NOK 1 million.  
 
CO2 tax on natural gas and LPG  
Commercial greenhouses  NOK 15 million.  
Freight and passenger transport in domestic shipping  NOK 60 million.  
Offshore vessels  NOK 23 million.  
Manufacturing and mining not covered by the EU ETS  NOK 16 million.  
 
Base tax on mineral oil: 
Pulp and paper industry:  NOK 7 million.  
Production of pigments and colouring agents:  NOK 1 million.  
Fish oil and fish meal industry:    NOK 25 million.  
Vessels used for fishing and catching   NOK 310 million.  
 
Expenditure for 2016:  
 
CO2 tax on miner al oil:  
Vessels used for fishing and catching  NOK 130 million.  
Fish oil and fish meal industry:  NOK 3 million.  
 
CO2 tax on natural gas and LPG  
Commercial greenhouses  NOK 20 million.  
Freight and passenger transport in domestic shipping  NOK 80 million.  
Offshore vessels  NOK 24 million.  
Manufacturing and mining not covered by the EU ETS  NOK 18 million.  
 
Base tax on mineral oil:  
Pulp and paper industry:  NOK 58 million.  
Production of pigments and colouring agents:  NOK 2 million.  
Fish oil and fish meal i ndustries:  NOK 23 million.  
Vessels used for fishing and catching  NOK 330 million.  
 
7. Duration of the subsidy  
 
Starting date:  
 
(a) CO2 tax:    1 January 1991  
(b) Base tax on mineral oil:  1 January 2000  
 
8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available.  
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  6 ASSISTANCE TO THE FI SHERY SECTOR  
6.1 Transport Support  
1. The authority responsible for the subsidy  
 
The Ministry of Trade, Industry and Fisheries.  
 
2. Legislation under which the subsidy is granted  
 
The Annual Stat e 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.  
 
The fish farming industry is not eligible for aid under this scheme.  
 
6. Amount of subsidy  
 
Balanced budget for 2015: NOK 26 million.  
Balanced budget for 2016: 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.  
 
6.2 Sealing  
1. The authority responsible for the subsidy  
 
The Ministry of Trade, Industry and Fisheries.  
 
2. Legislation under which the subsidy is granted  
 
The Annual State Budget.  
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  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 2015: no payment was made.  
Balanced budget 2016: NOK 2 million.  
 
7. Duration of the subsidy  
 
Duration has not been specified.  
 
8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available.  
 
7 ASSISTANCE TO FOREST RY SECTOR  
7.1 The Forest Trust Fund Scheme  
1. The authority responsible for the subsidy  
 
The Ministry of Finance and the Ministry of Agriculture and Food.  
 
2. Legislation under which the subsidy is granted  
 
The Wealth and Income Tax Act, No 14 of 26  March 1999.  
 
The Forest Trust Fund Scheme is also based on the Forestry Act of 1 January 2006 with 
amendments, latest by the Act No 98 of 19 June 2009,  and on the Regulation on Forest Fund 
Scheme of 3  July 2006.  
 
3. Policy objective of the subsidy  
 
The Forest Trust Fund is an obligatory reserve that should provide the forest land owners with a 
basis for financing measures aimed at sustainable management of forest resources. Due to long 
rotation cycles in boreal forests tax benefits are given to promote investments in long -term timber 
production and forest infrastructure (forest roads).  
 
4. Form of the subsidy  
 
Tax concessions.  
 
5. To whom and how the subs idy 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 trust fund is a regulation under the Forestry act, and requires forest owners to set aside 
between 4 and 40% of the revenues from harvested timber into a government administered fund, 
The Forest Trust Fund. The amount of money that is set aside to the fund is debited in the forest 
owner’s annual account.  The Forest Trust Fund is the p roperty of the forest owners, but the use of 
the fund is regulated allowing only for specific purposes such as planting, road building, G/SCM/N/315/NOR  
 
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  management planning, non -commercial thinning and other activities. When used, the money is 
treated as income for the for est owner. However, a part of it (85%) is exempt from taxation. Any 
other monetary support is subtracted before the tax relief is given. In addition to the tax relief 
granted trough the Forest Trust Fund, economic support is given for a similar range of ac tivities 
that support sustainable forest management. Special attention is directed to areas with relatively 
low utilization of forest resources due to sparsely developed forestry infrastructure, including 
coastal areas in western, mid and northern parts of  Norway.  
The forest owner does not receive any interests generated by the fund. The interest is used for 
designated purposes to the benefit of Norwegian forestry.  
 
Average tax assessment: The yearly income tax for the forest owner is based on the last 5  years 
average income. This is due to the progressive tax system in Norway, and the purpose is to avoid 
progressive taxing of professions with fluctuating incomes. The marginal tax may thus be reduced 
compared to other income groups, where the single last yea r 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.  
 
6. Amount of subsidy  
 
Estimated cost of the forest funds tax concession is:  
In 2016, 489 million NOK was credited and 391 million NOK was debited to the Forest Trust Fund, 
resulting in 1,545 billion NOK as a balance to the fund. Assuming that a forest landowner in 
average has a tax rate about 40%, a tax relief on 85% of the major part of the debited amount, 
can be compared to a grant of 125 mill NOK in 2016.  
 
2015: NOK 121 million.  
2016: NOK 125 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.  
 
 
7.2 The Timber Account  
1. The authority responsible for the subsidy  
 
The Ministry of Finance  
 
2. Legislation under which the subsidy is granted  
 
The Wealth and Income Tax Act, No 14 of 26 March 1999.  
 
3. Policy objective of the subsidy  
 
The objective is to promote utilisation of forest resources.  
 
4. Form of the subsidy  
 
Tax concession.  
 
5. To whom and how the subsidy is provided  
 
Forest owners can book taxable income from timber sales gradually, using a balance method very 
much like a profit and loss account. At least 20% of the remaining balance must be booked every 
year. Annual deficits must be booked according to the balance method.  
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  6. Amount of subsidy  
 
The cost of this tax concession is not estimated.  
 
7. Duration of the subsidy  
 
The tax concession was established in 2017 and replaced the average tax assessment scheme, 
which was annulled from 2017. It exists until modified or repealed.  
 
8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available.  
 
7.3 Subsidies for Forest Management Planning  
1. The authority responsible for the subsidy  
 
The Norwegian Agricultural Authority on behalf of The Ministry of Agriculture and Food.  
 
2. Legislation under wh ich 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 subsi dy 
 
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.  
 Preservat ion and enhancement of forest functions related to  biological diversity, 
landscape, and cultural and recreational values.  
 
4. Form of the subsidy  
 
Grants.  
 
5. To whom and how the subsidy is provided  
 
The subsidy is available to all categories of forest 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 larger designated areas and preparation of forest 
management plans on individual properties. Area registrations provi de data for forest inventory 
and resource overviews. The programme also supports 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 p reparation costs. Normally, subsidies are not granted to properties that have received 
grants from this programme within the last 10 -year period.  
 
6. Amount of subsidy  
 
2015: NOK 25 million.  
2016: NOK 20 million.  
 
7. Duration of the subsidy  
 
Starting date:  1971. Duration is not specified.  
 G/SCM/N/315/NOR  
 
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  8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available.  
 
7.4 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 environmental purposes in forestry of 4  February  2004, 
founded on the Forestry Act of 2005. Funded by the Agricultural Development Fund (LUF) under 
the annual Agricultural Agreement.  
 
3. Policy objective of the subsidy  
 
To stimulate value -adding forestry activities and long -term investments like silviculture and forest 
roads, as well as to enhanc e 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 environmental va lues in forest and harvesting of 
round wood in difficult terrain. The subsidy rates are determined by local authorities.  
 
6. Amount of subsidy  
 
2015: NOK 174 million.  
2016: NOK 177 million.  
 
7. Duration of the subsidy  
 
Duration is not specified.  
 
8. Trade effects of the subsidy  
 
Statistical data indicating trade effects are not available.  
 
7.5 Subsidies for Forest Infrastructure  
1. The authority responsible for the subsidy  
 
The Norwegian Agricultural Authority on behalf of The Ministry of Agriculture and Food.  
 
2. Legislation under which the subsidy is granted  
 
The Annual State Budget and the Forestry Act with amendments.  
 G/SCM/N/315/NOR  
 
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  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 forest roads.  
 
4. Form of the subsidy  
 
Grants.  
 
5. To whom and how the subsidy is provided  
 
All forest owners are eligible for grants, based on application containing plans for the infrastructure 
project.  
 
6. Amount of subsidy  
 
2015: NOK 42.2 million.  
2016: NOK 66.2 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.  
 
8 THE AGRICULTURAL SEC TOR 
8.1 Introduction to subsidies on the expenditure side of the budget  
The notification of the subsidies in the agricultural sector gives an overview of general 
developments in the Norwegian Agricultural Policy and of agricultural subsidy programs.  
 
Reference is also made to the notifications on domestic support provided to the Committee on 
Agriculture.  
 
8.2 Information on the subsidy programs  
The various programs are listed under the sub headings 10.2.1 to 10.2.7 below. Th e notification 
covers schemes in force from 1 January 2014 until 31 December 2015. Numbers for 2016 were not 
available in advance of the deadline for this notification. Norwegian agricultural policy is 
implemented in pursuit of the overall objectives conce rning  food security, agricultural production 
throughout the country,  improved productivity and sustainable agriculture.  
 
Target prices for farm products and the fiscal support to agriculture are agreed upon as integral 
parts of the annual Agricultural Ag reement between the farmers' unions and the Government. The 
Agricultural Agreement is subject to ratification and appropriation of budget funds by the 
Norwegian Parliament. Allocations in the Agricultural Agreement are made under Chapter 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. Direct payments, of wh ich 
a significant part is differentiated by criteria such as region, size of farms, arable land and number 
of animals, play a significant role.  
 
8.2.1  The milk sector  
Milk production is of vital importance in several rural regions as alternative forms of agricul tural 
production are scarce. It is a policy objective to facilitate employment and economic activity in the G/SCM/N/315/NOR  
 
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  countryside, maintenance of agricultural landscape, and to fulfil national food security policies 
including protecting arable land and securing a de centralized production structure.  
 
Since 1 July 2002, base deficiency payments are granted for goat milk only. In addition, regional 
deficiency payments apply to rural areas. The deficiency payments are paid for each liter of milk 
delivered to the dairy. T he 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 mi lk production. 
The objective of the program is to equalize income between larger and smaller holdings.  
 
8.2.2  The meat and egg sectors  
Producers of meat from mutton receive a base deficiency payment on all output. Producers of beef 
cattle receive structural inco me support. The support is paid as a lump sum to producers with 6 or 
more succler cows. In addition a deficiency payment is provided as a quality incentive for wool. 
Regional deficiency payment is provided to producers of meat and eggs in less favoured reg ions. 
The payment is differentiated by region and by type of meat. The rates are highest in the 
northernmost county in Norway. Transport support is granted to equalise farm gate return due to 
differences in distance from slaughterhouses, processing plants and major consumer markets. A 
small amount of transport support is granted to the egg sector based on the same rational as for 
the meat sector. Producers of beef receive payments per kg beef under the quality incentive 
support program for beef if the quali ty requirement of class O or better in the EUROPE quality 
standard is met. The aim of the program is to increase the overall quality of Norwegian beef.  
 
8.2.3  The grain sector  
The Grain Price Support Program aims at securing the sale of Norwegian grain and to reduce the 
prices on raw materials for flour and for feed purposes.  
 
8.2.4  Potatoes and horticultural products  
Regional deficiency payments are provided to production of fruit, berries and vegetables. In the 
horticultural sector some transport support and storag e support is also provided.  
 
8.2.5  Headage support  
The headage support is based on the the number of animals, and the support is differentiated by 
region, farm size and kind of animal.  
 
8.2.6  National environmental program  
The aims of the national program are to ensure that various types of agricultural landscapes are 
maintained and that valuable biotopes and cultural heritage are attended to and taken care of. 
Given that the agricultural landscape in Norway constitutes only 3% of the total area, it is 
important t o safeguard environmental goods, which are dependent upon the agricultural 
landscape. An essential part of the program is therefore to prevent that the agricultural landscape 
is transformed into less valuable types of landscapes. Furthermore, the program i s aimed at 
contributing to an agricultural production that leads to the least possible pollution and loss of 
nutrients.  
 
The economic measures under the environmental programs shall cover the additional costs linked 
to the participation in the program thro ugh the maintenance of the agricultural landscape and 
other environmental requirements, and represent payments for the production of environmental 
goods. The payments under the National Environmental program include payments per hectare 
and payments for gr azing animals.  
 
Organic production is subject to separate support programs.  
 G/SCM/N/315/NOR  
 
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  8.2.7  Vacation and replacement  
To enable livestock farmers to have sufficient holidays and time off they are refunded expenses for 
hiring relief personnel under the Vacation and Replace ment Scheme. Eligible farmers must have an 
approved substitute scheme and expenses must be documented.  
 
8.2.8  Market regulation  
Market regulation is mainly financed through a marketing levy. Producers become liable for the 
marketing levy when selling a product. The aim of the market regulation is to equalize prices to 
producers and consumers in different regions and to secure supply of agricultural products in all 
regions of the country.  
 
8.3 Expenditures and market structure  
Deficiency payments, the structural incom e support, support under the environmental program as 
well as the Vacation and Replacement Scheme are granted directly to farmers. The rest of the 
programs are market regulation schemes and other indirect schemes.  
 
The amounts of support measured by total budget expenditures for 2014 and 2015 are listed in 
tables 1 to 5 below. All numbers are account figures. Tables 1 to 10 provide updated information 
on Agricultural Support in Norway as well as market information on major agricultural 
commodities. The sour ces are Proposition No 1 (2015 -2016) and (2016 -2017) to the Norwegian 
Parliament by the Ministry of Agriculture and Food, the Norwegian Agriculture Agency 
(Landbruksdirektoratet) and the The Norwegian Institute of Bioeconomy Research (NIBIO), which 
is a me rger of three institutes including the Norwegian Agricultural Economics Research Institute  
(NILF).  
 
In Table 1 Price Support and Other direct payments to producers are totals from Table 2 and 
Table  3. The rates in Table 5 and 6 multiplied by eligible volum es of milk and meat are equivalent 
to Price Support in Table 2.  
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  TABLE 1  
CHAPTER 1150, AGRICU LTURAL AGREEMENT  
Million NOK  
 2014  2015  
Agricultural Development Fund  1301. 5 1177. 0 
Market Regulation  32.4 24.4 
Price Support  2637. 9 2944. 2 
Other direct payments to producers  8665. 7 8665. 9 
Total   
TABLE 2  
CHAPTER 1150 PRICE S UPPORT  
Million NOK  
 2014  2015  
Milk 587.6 606.8 
Beef, veal, mutton and pork  915.6 956.0 
Cereals  708.5 915.7 
Eggs 16.2 16.3 
Potatoes, fruit and vegetables  118.6 128.7 
Wool 122.8 126.0 
Other  168.6 194.7 
Total 2637.9 2944.2 
TABLE 3  
CHAPTER 1150, OTHER DIRECT PAYMENTS TO P RODUCERS  
Million NOK  
 2014  2015  
Structural income support  1372. 9 1349. 1 
Headage support, animals  2503. 6 2601. 9 
Grazing support  787.3 790.5 
Acerage  and cultural landscape scheme  2630. 0 3557. 3 
Support to organic production  104.8 105.4 
Production support to market crops  41.5 49.9 
Other  225.6 211.8 
Total 8665. 7 8665. 9 G/SCM/N/315/NOR  
 
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  TABLE 4  
BASE DEFICIENCY PAYM ENTS, AMOUNT PER UNIT  
(NOK per kg)  
 2014  2015  
Mutton  3.81 3.81 
TABLE 5  
REGIONAL DEFICIENCY PAYMENTS, AMOUNT PER  UNIT 
(NOK per litre/kg)  
 2014  2015  
Milk 0,00/1. 80 0,00/1. 80 
Meat 0,00/13/80  0,00/13/80  
TABLE 6  
COWS MILK  
Year Received by diaries  Consumption  
million kg  
Million litres  Whole, low -fat and 
skimmed milk  Cream ans sour 
cream  
2014  1509 462.0 38.0 
2015  1536 454.0 38.0 
TABLE 7  
CHEESE (MILLION KG)  
Year Production  Exports  Imports  Consumption  
2014  92.3 12.6 12.2 91.9 
2015  93.6 11.5 12.9 94.9 
TABLE 8  
BUTTER (MILLION KG)  
Year Production  Exports  Imports  Consumption  
2014  16.3 0.0 0.4 16.7 
2015  17.4 0.0 0.4 17.2 G/SCM/N/315/NOR  
 
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  TABLE 9  
CEREALS (MILLION KG)7 
Year Production  Exports  Imports  Consumption  Wheat  
2014  370.7 0.1 486.7 544.4 
2015  472.9 0.0 357.4 546.4 
 
Year Production  Exports  Imports  Consumption  Rye 
2014 36.8 0.0 13.4 24.4 
2015 62.2 0.0 1.3 42.4 
 
Year Production  Exports  Imports  Consumption  Barley  
2014 500.0 0.2 26.0 532.6 
2015 479.6 0.1 20.8 498.4 
 
Year Production  Exports  Imports  Consumption  Oats 
2014 270.4 0.0 27.3 239.6 
2015 269.2 0.0 4.6 282.3 
TABLE 10  
MEAT (MILLION KG)  
Year Production  Exports  Imports  Consumption  Beef and veal  
2014  78.7 0.8 11.9 94.2 
2015  79.7 0.4 22.7 103.7 
 
Year Production  Exports  Imports  Consumption  Lamb  
2014  24.3 0.1 2.4 25.8 
2015  25.7 0.0 1.6 26.2 
 
Year Production  Exports  Imports  Consumption  Pork  
2014  128.8 5.6 5.4 131.7 
2015  134.7 3.3 3.5 136.3 
 
Year Production  Exports  Imports  Consumption  Poultry  
2014  106.1 3.9 1.5 100.1 
2015  92.6 1.5 1.9 94.6 
                                                
7 Production data cover the marketing year 2014/2015 and marketing year 2015/2016 respectively.  
 G/SCM/N/315/NOR  
 
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  TABLE 11  
EGGS (MILLION KG) 
Year Production  Exports  Imports  Consumption  
2014  64.8 1.0 0.0 64.1 
2015  66.7 1.1 0.0 65.8 
 
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