G/SCM/N/284/NOR  
 
7 July 2015  
(15-3501)  Page: 1/46  
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 2 July 2015, is being circulated at the request of the 
Delegation of Norway. 
 
_______________ 
 
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TABLE OF CONTENT  
1   INTROD UCTION  .......................................................................................................... 4  
2   ASSISTANCE TO RESEARCH  AND DEVELOPMEN T SCHEMES ......................................... 4  
2.1   R&D Contracts .......................................................................................................... 4 
2.2   Aid Scheme for the promotion of environment-friendly technology .................................... 5  
2.3   Industrial R&D pr ogrammes and pr ojects ...................................................................... 6  
2.4   Tax Credit for Expenses on R&D .................................................................................. 7  
2.5   Scheme for research and development concerning gas technologies with improved 
environmental performance ("Gassnova Aid Scheme - CLIMIT") ............................................... 8  
2.6   The Wood-based Innovation Scheme ............................................................................ 9  
2.7   Norwegian Centres for Research-based Innovation (CRI) ................................................ 10 
2.8   Centres for environment fr iendly energy re search (FME) ................................................ 11 
2.9   CO 2 Technology Centre Mongstad (TCM) project ............................................................ 12 
2.10   FORNY (Commercia lizing R&D results) ....................................................................... 13 
2.11   BIOTEK 2021 – Aid Scheme for Large-scale, industry-relevant researcher projects 
in Biotec hnology ..............................................................................................................  14 
3   ASSISTANCE TO DISADVANTAGED REGIONS ............................................................. 15  
3.1   Regional Investment Grant and Risk Loans ................................................................... 15 
3.2   The Industrial Development Corporation of No rway (SIVA) ............................................. 16 
3.3   Regional transpor t aid ............................................................................................... 17 
3.4   SME-aid for regional development ............................................................................... 18 
3.5   Training aid for regional development .......................................................................... 19 
3.6   Research, development and innova tion scheme for regi onal development ......................... 20 
4   ASSISTANCE TO SMALL AND MEDIUM SIZED EN TERPRISES ...................................... 20  
4.1   National I nnovation scheme ....................................................................................... 20 
4.2   Seed Capital Funds ................................................................................................... 21 
5   ASSISTANCE TO THE ENVIRO NMENT ......................................................................... 22  
5.1   Aid related to sustainabl e production an d consumption .................................................. 22 
5.2   The En ergy Fund ...................................................................................................... 23 
5.3   The Bioenergy Scheme .............................................................................................. 24 
5.4   TRANSNOVA – Schemes for introduction of zero and low emission transport 
technologies and tr ansport pr actice .................................................................................... 25 
6   ASSISTANCE TO EXPORT PROM OTION ...................................................................... 25  
6.1   Export developmen t programme for SMEs .................................................................... 25 
6.2   Export Credit  Financing Scheme ................................................................................. 26 
6.3   The new Export Cr edit Financin g Scheme ..................................................................... 27 
6.4   Export Credit Guarantees ........................................................................................... 28 
6.5   Exemption from electricity tax for energy intensive industries, paper and pulp 
industry and greenhouses ................................................................................................. 29 G/SCM/N/284/NOR 
 
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  7   ASSISTANCE TO SPECIF IC INDUSTRY SECTORS ........................................................ 30  
7.1   Exemptions and reduced rates in the CO 2 taxes and in the tax on mineral oil (base 
tax on mineral oil) ...........................................................................................................  30 
7.2   The Press Grant Scheme ............................................................................................ 31 
7.3   National programmes for the promotion of Norwegian space industry ............................... 32 
8   ASSISTANCE TO TH E FISHERY SE CTOR ..................................................................... 33  
8.1   Tax allowance .......................................................................................................... 33 
8.2   Transp ort Support .................................................................................................... 33 
8.3   Sealing ................................................................................................................. .. 34 
9   ASSISTANCE TO FORESTRY SE CTOR .......................................................................... 35  
9.1   The Forest Tr ust Fund Scheme ................................................................................... 35 
9.2   The Averag e Tax Assessment ..................................................................................... 36 
9.3   Subsidies for Forest  Management Planning ................................................................... 37 
9.4   Subsidies for industrial and en vironmental purposes  in forestry ....................................... 38 
9.5   Subsidies for Fo rest Infras tructu re .............................................................................. 38 
9.6   Subsidies for the production of energy wood ................................................................. 39 
10   THE AGRICULT URAL SECT OR ................................................................................... 40  
10.1   Tax allowa nce to fa rmers ......................................................................................... 40 
10.2   Introduction to subsidies on the expenditure side of the budget ..................................... 40 
10.3   Information on the subsidy programs ........................................................................ 40 
10.3.1   The mi lk sect or .................................................................................................... 41 
10.3.2   The meat and egg sectors ..................................................................................... 41 
10.3.3   The grain sector ................................................................................................... 41 
10.3.4   Potatoes and horticultural products ......................................................................... 41 
10.3.5   Headage support .................................................................................................. 41 
10.3.6   National en vironmental program ............................................................................ 41 
10.3.7   Vacation and replacement ..................................................................................... 42 
10.3.8   Market regulation ................................................................................................. 42 
10.4   Expenditures and market structure ............................................................................ 42 
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  1  INTRODUCTION 
This report covers state aid programmes and schemes that were in operation in 2013 and 2014. 
The amount of subsidies which are reported, refe r to actual payments in the fiscal years 2013 
and 2014. As regards the agricultural sector, the notification covers schemes in force from 
1 January 2012 and until 31 December 2013, as numbers for 2014 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, Industry and Fisheries.  
 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 revidert e 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. 
Aid is granted on the condition that aid is necessary to start up and realise a project. 
 G/SCM/N/284/NOR 
 
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  6. Amount of subsidy 
 
2013: NOK 309.1 million. 2014: NOK 278.7 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, Industry and Fisheries.  
 
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 
 
2013: NOK 145.2 million. 
2014: NOK 168.5 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/284/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, Industry and Fisheries 
 the Ministry of Petroleum and Energy 
 the Ministry of Agriculture and Food 
 the Ministry of Climate and the Environment 
 the Ministry of Transport and Communications 
 the Ministry of Labour and Social Affairs 
 the Ministry of Children, Equality and Social Inclusion 
 the Ministry of Local Government and Modernisation 
 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. G/SCM/N/284/NOR 
 
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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 
is not allowed to exceed 50% 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 
 2013: NOK 980.30 million. 2014: NOK 1108.42 million. 
 
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).  
 G/SCM/N/284/NOR 
 
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  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% of R&D expenses (18% 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. In 2009 the corresponding limits were increased to NOK 5.5 and 11 million. In 2014 the corresponding limits were increased to NOK 8 and 22 million.Projects have to be 
approved as R&D ex ante  by the Research Council of Norway, and the project 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)
 
 
2012: NOK 1 392 million. 
2013: NOK 1 561 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 ("Ga ssnova Aid Scheme - CLIMIT") 
1. The authority responsible for the subsidy 
 
Administered by Gassnova 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 purpose is to stimulate development and testing of CO 2 capture and storage technologies. The 
scheme supports research, development, testin g and demonstration of new technologies.  
The objective is to accelerate commercialization of CO 2 capture and storage (CCS) through 
financial stimulation of research, development and demonstration.  
CLIMIT is to contribute to: 
 
 Lower costs and early international realisation of CCS capture and storage. 
 CCS capture and storage in Norwegian companies. 
 Realisation of storage potential in the North Sea. 
Projects supported by CLIMIT are to contribute to: 
 
 Knowledge and expertise to fill technological gaps and increase safety. 
 Pioneering technologies and service concepts with an international potential. G/SCM/N/284/NOR 
 
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  4. Form of the subsidy 
 
Grants.   
5. To whom and how the subsidy is provided 
 
The CLIMIT programme provides financial support for development of carbon capture and storage 
(CCS) technology. CLIMIT Demo will support development of technology for cost-effective and 
future-oriented solutions for CCS in develo pment, pilot and demonstration projects. 
 Applications can be submitted for several different types of projects: 
 
 Researcher projects (FP)  are basic research which yields new knowledge that can be 
used in further developing products and services. Researcher projects often use 
doctorate-level expertise.  
 Expertise projects for business and industry (KPN)  that contribute to commercial 
research, researcher training and long-term expertise development in Norwegian 
research communities. Such projects are ba sed on identified needs for new knowledge 
on the part of Norwegian enterprises.  
 Innovation projects in business and industry (IPN ) and Development projects  
targeting business and industry players, and including projects that generate knowledge 
and skills for development of new or improved products or services.  
 Pilot and demonstration projects  which are the final step before commercialization of 
new products and services, and can include building facilities to test new technology.  
 Other support  can include preliminary projects, support for international collaboration, 
or participation in strategically important international forums. 
6. Amount of subsidy 
 
2013: NOK 136.3 million. 2014: NOK 105.4 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.  
 G/SCM/N/284/NOR 
 
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  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 
 2013: NOK 22.5 million. 2014: NOK 25 million. 
 
7. Duration of the subsidy 
 The scheme was established in 2006, and is currently still in effect. The scheme is, however, 
dependent on annual allocations over the state budget.  
 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 Mi nistry of Trade, Industry and Fisheries through 
the Research Council of Norway.  
 2. Legislation under which the subsidy is granted  
 Funds from The Ministry of Education and Resear ch and the Ministry of Trade, Industry and 
Fisheries comes from the State Budget which is a pproved by the Norwegian 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.  
 G/SCM/N/284/NOR 
 
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  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% of the CRI's annual budget. The host Institution with 
partners undertakes to contribute at least 50% of  the centres' annual budget. At least 25% 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% of the research carried out is to be fundamental research and the remaining 25% is 
to cover industrial research. No pre-competitive research is to be carried out in the 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
1 
 
2013: NOK 210.2 million. 2014: NOK 197.7 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. 
                                               
1 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/284/NOR 
 
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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% of the FME's annual budget. The host Institution with 
partners undertakes to contribute at least 50% of  the centres' annual budget. At least 25% 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% of the research carried out is to be fundam ental research and the remaining 25% 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.  
 
6. Amount of subsidy
2 
 
2013: NOK 124 million. 
2014: NOK 123 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.   
                                               
2 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/284/NOR 
 
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  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% in the Company,  Shell and SASOL participates with a share of 
2.44% each, whereas the State covers the remaining 75.12%. 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 
 
2013: NOK 382 million. 
2014: NOK 338 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.  
 
8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available. 
 
2.10  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, Industry and Fisheries 
 the Ministry of Education and Research 
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. 
 G/SCM/N/284/NOR 
 
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  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 
 
2013: NOK 10.5 million. 
2014: NOK 13.5 million. 
 7. Duration of the subsidy 
 Duration up to 2020.   8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.   
2.11  BIOTEK 2021 – Aid Scheme for Large-scale, industry-relevant researcher projects 
in Biotechnology 
1. The authority responsible for the subsidy 
 
Administered by the Research  Council of Norway (RCN). 
 RCN's funds come from: 
 
 the Ministry of Trade, Industry and Fisheries 
 the Ministry of Education and Research 
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 scheme for Large-scale, Industry-relevant Resear chers Projects in Biotechnology is part of the 
programme Biotek2021,which is organised by the Re search Council of Norway (RCN) with a view 
to implementing the Norwegian government's strategy for biotechnology.  
 
The strategy identifies biotechnology as a key element in the development of the agricultural, marine, industrial and health sectors. The strategy also identifies four cross-cutting focus areas: 
 
 biotechnology and society;  
 international cooperation;  
 industrial development;  
 competencies and infrastructure. G/SCM/N/284/NOR 
 
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  4. Form of the subsidy 
 
Grants.  
5. To whom and how the subsidy is provided 
 
This scheme concerns aid to Large-scale, Industry -relevant Researchers Projects in Biotechnology. 
Eligible projects must involve several partners, be of relevance to industry, and are subject to 
minimum requirements with regard to project management etc. The call for proposals encourages the research organisations to include partners from  trade and industry. The aid will be disbursed to 
the research organisations, which, in turn, enter into contracts with the private partners. Only a 
small amount of the budget under this scheme constitu tes state aid, as most of it will be spent by 
research organisations in pursuit of their non-economic activities.   
6. Amount of subsidy 
 
2013: NOK 5 million. 
2014: NOK 5 million 
 7. Duration of the subsidy 
 
Duration up to 2016. 
 8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.   
3  ASSISTANCE TO DISADVANTAGED REGIONS 
3.1  Regional Investment Grant and Risk Loans 1. The authority responsible for the subsidy 
 
Innovation Norway on behalf of The Ministry  of Local Government and Modernisation.  
 2. Legislation under which the subsidy is granted 
 
 Act no. 130 of 19 December 2003.  
 Regulation on regional aid funds (FOR-2013-12-11-1574)3 with guidelines4 . 
 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.  
 
                                               
3 Regulation of 1.1.2014. 
4 Reviewed guidelines in effect from 1.1.2015.   
5 Reviewed regulation in effect as of 2014 (FOR-2014-06-17-807).  .   G/SCM/N/284/NOR 
 
- 16 - 
 
  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.  
 In the assisted area the general aid intensity is maximum 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).  
 Risk loans are provided to enterprises in the assisted area to investments, restructuring and new 
construction projects. Aid is normally granted to projects that have difficulties to find adequate 
capital in the private market ("top-up" funding).   
6. Amount of subsidy 
 
2013: NOK 149.4 million. 2014: NOK 151.5 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  The Industrial Development Corporation of Norway (SIVA) 
1. The authority responsible for the subsidy 
 
The Ministry of Trade, Industry and Fisheries, th e Ministry of Local Government and Modernisation 
and the Ministry of Agriculture and Food.   
2. Legislation under which the subsidy is granted 
 
The State Budget – Ministry of Trade, Industry and Fisheries, Ch. 2426.70.  
 
The State Budget – Ministry of Local Govern ment and Modernisation, Ch. 551.60, 551.61 and 
552.72.   
The scheme was block exempted from the State Aid Rules in the EEA-agreement through letter to 
the EFTA Surveillance Authority with a summary information sheet dated 6 January 2012.   
The State Budget – Ministry of Agriculture and Food – Ch. 1137.52. 
 The scheme was block exempted from the State Aid Rules 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  
 
Sivas object 
Siva is, through its property and innovation activities, the Norwegian state's instrument for facilitating ownership and development of enterp rises and business and knowledge communities all 
over Norway. Siva has a particular responsibility for promoting capacity for growth in rural areas.  
 Main goal  G/SCM/N/284/NOR 
 
- 17 - 
 
  SIVA aims to trigger profitable business development in enterprises and regional business and 
knowledge environments.   Sub-goal, property 
SIVA's property investments are intended to lower the barriers to establishing businesses in areas 
where market mechanisms make such establishment particularly demanding, also for large-scale industrial property projects.  
 
Sub-goal, innovation SIVA's innovation activities are intended to facilitate the establishment and development of enterprises in business and knowledge-communities and link them together in regional, national 
and international networks.  
 4. Form of the subsidy 
 Grants.  
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 76.8 million. 
2012: NOK 80.2 million. 2013: NOK 84.2 million. 
2014: NOK 80.4 million. 
 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. 
 3.3  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 aid (FOR-2014-06-17-807)6.  
Regulation on regional aid funds (FOR-2013-12-11-1574)7 with guidelines8. 
 
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.  
 
                                               
6 Regulation of 1.7.2014. 
7 Regulation of 1.1.2014. 
8 Reviewed guidelines in effect from 1.1.2015.   G/SCM/N/284/NOR 
 
- 18 - 
 
  4. Form of the subsidy 
 
Grants.   
5. To whom and how the subsidy is provided 
 
The purpose of the scheme is to offset addition al 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 that have undergone significant processing within the eligible area.  
 
6. Amount of subsidy 
 
2013: NOK 19.05 million. 
 The subsides for the transport sector are paid out the year after the final numbers are clear, 
therefore subsidies for transport carried out in 2013 is not paid out until 2015. The subsidies for 
transport carried out in 2014 have not yet been given out, and subsequently cannot be reported on at this time. 
 
7. Duration of the subsidy  
 
31.12.2020. 
 
8. Trade effects of the subsidy  
 Statistical data indicating trade effects are not available.   
3.4  SME-aid for regional development 
1. The authority responsible for the subsidy 
 
Innovation Norway on behalf of The Ministry  of Local Government and Modernisation.  
 2. Legislation under which the subsidy is granted 
 Act no. 130 of 19 December 2003.  
Regulation on regional aid funds (FOR-2013-12-11-1574)
9 with guidelines of January 201510. 
Regulation of May 2003 on Investment aid and geographical delimitation of areas eligible for 
regional aid11. 
The Annual State Budget.  
 
3. Policy objective of the subsidy 
 
Stimulate the development of SMEs in the assisted area.  
 4. Form of the subsidy 
 
Grants.  
 5. To whom and how the subsidy is provided 
 Investment aid (aid intensity maximum 20/10% of eligible costs in small/medium sized enterprises) 
Aid for consultancy costs of services provided by outside consultants (up to 50%) 
Aid for SME participation in fairs (up to 50%).  
                                               
9 Regulation of 1.1.2014. 
10 Reviewed guidelines in effect from 1.1.2015.   
11 Reviewed regulation in effect as of 1.7.2014.   G/SCM/N/284/NOR 
 
- 19 - 
 
   
6. Amount of subsidy 
 2013: NOK 38.0 million. 
2014: NOK 174.4 million.  
 7. Duration of the subsidy 
 Not specified.   8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.   
3.5  Training aid for regional development 
1. The authority responsible for the subsidy 
 
Innovation Norway on behalf of the Ministry  of Local Government and Modernisation.  
 2. Legislation under which the subsidy is granted 
 
The Annual State Budget.  
Act no. 130 of 19 December 2003. Regulation on regional aid funds (FOR-2013-12-11-1574)
12 with Guidelines13. 
Regulation of May 2003 on Investment aid and geog raphical delamination of areas eligible for 
regional aid14. 
 
 
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 
 2013: NOK 74.1 million. 2014: NOK 67.4 million. 
 
7. Duration of the subsidy 
 
Not specified.  
 8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.  
 
                                               
12 Regulation of 1.1.2014 
13 Reviewed guidelines in effect from 1.1.2015.   
14 Reviewed regulation in effect as of 1.7.2014 (FOR-2014-06-17-807).   G/SCM/N/284/NOR 
 
- 20 - 
 
  3.6  Research, development and innovati on scheme for regional development 
1. The authority responsible for the subsidy 
 
Innovation Norway on behalf of The Ministry  of Local Government and Modernisation.  
 
2. Legislation under which the subsidy is granted 
 
Act no. 130 of 19 December 2003.  
Regulation on regional aid funds (FOR-2013-12-11-1574)15 with guidelines of January 2015.16 
Regulation of May 2003 on Investment aid and geographical delimitation of areas eligible for 
regional aid.17 
The Annual State Budget.   
3. Policy objective of the subsidy 
 
Stimulate research and innovation.  
 
4. Form of the subsidy 
 
Grants.  
 5. To whom and how the subsidy is provided 
 
The aid is granted to enterprises with eligible costs within the categories fundamental research, 
industrial research, experimental studies and/or feasibility studies.   
6. Amount of subsidy 
 
2013: NOK 106.2 million. 
2014: NOK 104.5 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 Minist ry 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 and Industry to Innovation Norway dated 3 March 2011 
("Oversendelse av ytterligere revidert e regelverk for Innovasjon Norge"). 
 The Annual State Budget. 
                                               
15 Regulation of 1.1.2014. 
16 Reviewed guidelines in effect from 1.1.2015.   
17 Reviewed regulation in effect as of 1.7.2014 (FOR-2014-06-17-807).   G/SCM/N/284/NOR 
 
- 21 - 
 
   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.  
 
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 
 
2013: NOK 128 million (of which 86.1 million is de minimis  aid). 
2014: NOK 177.2 million (of which 122.6 million is de minimis  aid). 
 
 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 
 
Innovation Norway on behalf of The Norwegian Ministry of Trade, Industry and Fisheries .  
 
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.  
 G/SCM/N/284/NOR 
 
- 22 - 
 
  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 2013: NOK 25 million. 
 Payment of subsidy in 2014: NOK 26.1 million. 
 
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, it has now been phased out   8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.   G/SCM/N/284/NOR 
 
- 23 - 
 
  5.2  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 implem entation and administration of the scheme. 
 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.  G/SCM/N/284/NOR 
 
- 24 - 
 
  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 2013: approximately NOK 703 million. 
Amount paid out by Enova in 2014: approximately NOK 868 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.  
 5.3  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 
 
2013: NOK 50 million. 2014: NOK 68 million. 
 
7. Duration of the subsidy 
 
The scheme was established in 2003, and the dura tion is dependent on annual allocations.  
 G/SCM/N/284/NOR 
 
- 25 - 
 
  8. Trade effects of the subsidy 
 
Statistical information indicating trade effects are not available.   
5.4  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 d the superior responsibility for the scheme. 
Transnova, which was a project organization within The Norwegian Public Roads Administration, and 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.  
 
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 2013 and 2014 the total gr ants to Transnova were respectively NOK 87.2 
mill and NOK 89.6 mill. The total payment to projects (excluding operational costs) in 2013 and 
2014 was NOK 57.2 mill and NOK 60.46 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 instruments to reduce greenhouse gas emissions. 
From 01.01.2015 Transnova was closed down, and its objectives were transferred to Enova. See 
chapter 5.1.1 concerning Enova and the Energy Fund.  
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 
 
Innovation Norway on behalf of the Minist ry of Trade, Industry and Fisheries.  
 
2. Legislation under which the subsidy is granted 
 
 Act no 130 of 19 December 2003 on Innovation Norway. G/SCM/N/284/NOR 
 
- 26 - 
 
   Letter from the Ministry of Trade and Industry to Innovation Norway dated 3 March 2011 
("Oversendelse av ytterligere revidert e 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 information 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.  
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 
 
Eksportfinans ASA on behalf of the Minist ry of Trade, Industry and Fisheries.  
 
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.  
 G/SCM/N/284/NOR 
 
- 27 - 
 
  5. To whom and how the subsidy is provided 
 
The receivers of the officially supported export credits are the purchasers of Norwegian capital 
goods. Export credits are offered at interest rates set according to the OECD Arrangement.  
 
As of 2013, no new loans will be disbursed under  the scheme. Hence, the scheme consists of a 
portfolio of loans issued prior to 2013. The outsta nding loans are gradually repaid to the scheme. 
The figures reported in point 6 is a grant covering the deficit related to the management of the 
scheme. The deficit depends inter alia on the in terest on the loans given and the corresponding 
funding and administrative expenditures.  
6. Amount of subsidy 
 
2013: NOK 358.9 million. 
2014: NOK 375 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  The new Export Cr edit Financing Scheme 
1. The authority responsible for the subsidy 
 
Eksportkreditt Norge AS on behalf of the Mini stry of Trade, Industry and Fisheries.  
 2. Legislation under which the subsidy is granted 
 Act no 57 of 22
nd of June 2012 relating to Eksportkreditt Norge AS (Export Credit Act).  
 
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.   
 
5. To whom and how the subsidy is provided 
 
The receivers of the officially supported export credits are purchasers of Norwegian capital goods 
and services. Export credits are offered at interest  rates set according to the OECD Arrangement.  
 After the 21
st of December 2011, no new CIRR-loan commitments were issued by Eksportfinans 
ASA under the previous Export Credit Financing Scheme. In order to ensure the continued 
provision of officially supported export finance,  a new permanent Export Credit Financing Scheme 
was in place as of 1st of July 2012. An interim scheme, administered by Eksportfinans ASA, was in 
place until the new permanent scheme was operative. 
 6. Amount of subsidy 
 2012: 0 2013: 0 2014: 0 G/SCM/N/284/NOR 
 
- 28 - 
 
   
These CIRR-loans are in their entirety financed by funds allocated over the National Budget. The loans are recorded in the Government balance sheet. Owing to the fact that the National Budget, and therefore also these CIRR-loans, is subject to  cash flow accounting, there are no official 
profitability measures of this lending activity. However, the annual results of the new Export Credit 
Financing Scheme have been estimated using a shadow account, assuming inter alia that the CIRR-lending is funded by yearly issuance of  new Government debt with matching average 
maturities. Estimated in this manner, the CIRR-activity has generated non-negative (positive) 
results for the last three years.   7. Duration of the subsidy 
 Starting date: 2012.  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.  
 6.4  Export Credit Guarantees 
1. The authority responsible for the subsidy 
 
The Norwegian Ministry of Trade, Industry and Fisheries 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.  
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.  G/SCM/N/284/NOR 
 
- 29 - 
 
  8. Trade effects of the subsidy 
 
Statistical data indicating trade effects are not available.   
6.5  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 present structure of the electricity tax was introduced 1 July 2004. 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.  
 Tax concession : Electricity delivered to pulp and paper plants with approved energy efficiency 
programmes, energy intensive processes (chemical reduction, electrolytic, metallurgical and 
mineralogical processes), and greenhouses are exempt from the tax. The pulp and paper scheme has been suspended since 1 July 2014.  
 
6. Amount of subsidy 
 Expenditure for 2013:  
Energy intensive processes:   NOK 145 million.  
The pulp and paper industry:   NOK 15 million.  Greenhouses:     NOK 1.2 million. 
 
Expenditure for 2014:  Energy intensive processes:   NOK 148 million.  
The pulp and paper industry:   NOK 6.5 million.  
Greenhouses:     NOK 1.2 million.  7. Duration of the subsidy 
 Starting date:  
Energy intensive processes:    1 July 2004 
The pulp and paper industry:    1 July 2004 Greenhouses:     1 July 2004 
 
8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.  G/SCM/N/284/NOR 
 
- 30 - 
 
   
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. 
 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 2013 the CO 2 tax on 
mineral oil was NOK 0.61 per litre and in 2014 the tax was NOK 0.88 per litre. The CO 2 tax on 
natural gas was NOK 0.46 per Sm3 in 2013 and NOK 0.66 per Sm3 in 2014. The CO 2 tax on LPG 
was NOK 0.68 per kg in 2013 and NOK 0.99 per kg in 2014.   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 2013 and 2014.  
 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 Sm3 natural gas.  
 
Vessels used for fishing and catching are exempted from the CO 2 tax on mineral oil used in distant 
waters, natural gas and LPG. Vessels used for fishing and catching in inshore waters are subject to a reduced CO
2 tax on mineral oil. The reduced CO 2 tax was NOK 0.13 per litre in 2013 and NOK 
0.26 per litre in 2014. Commercial greenhouses are 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 2013 the tax rate was NOK 1.037 per litre 
and in 2014 the tax was NOK 1.557 per litre.  
 G/SCM/N/284/NOR 
 
- 31 - 
 
  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 2013 and 2014.   
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 2013:  
 
CO2 tax on mineral oil: 
Vessels used for fishing and catching      NOK 220 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 660 million. 
Tax on mineral oil (base tax on mineral oil): 
The pulp and paper industry:       NOK 17.0 million.  The production of pigments and colouring agents:    NOK 0.9 million. 
The fish oil and fish meal industries:      NOK 17.3 million. 
 
Expenditure for 2014:  
 
CO
2 tax on mineral oil: 
Vessels used for fishing and catching      NOK 260 million. The fish oil and fish meal industries:      NOK 0.9 million. 
 
CO
2 tax on natural gas and LPG 
Manufacturing, mining and undertakings covered by the EU ETS  NOK 920 million.  
Tax on mineral oil (base tax on mineral oil): 
The pulp and paper industry:       NOK 47.2 million.  The production of pigments and colouring agents:    NOK 0.9 million. 
The fish oil and fish meal industries:      NOK 17.8 million. 
 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 first introduced in 1969 by a parliamentary decision.  
Present legislation: Royal Decree of 7 November 1996 and amendments.  The subsidy was changed in 2013 in order to open the scheme for news media published in 
electronic form. The EFTA Surveillance Authority decided on not to raise abjections to the new 
scheme 12 March 2014  G/SCM/N/284/NOR 
 
- 32 - 
 
  3. Policy objective of the subsidy 
 
To promote and maintain a diversified press, contribute to maintain a diversity of newspaper publications throughout Norway and stimulate local newspaper competitors 
 
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 (paper or electronic) 
per annum circulation. Local newspapers with one or more issues per week with an average circulation between 1000 and 6000 copies can apply for grants. In addition, grants are given to 
national newspapers in an unfavourable market position that meet specific criteria. 
 6. Amount of subsidy 
 2013: The average amount of subsidy received by the newspapers which were granted support was NOK 2.18 million. The total amount of subsidy granted was NOK 307.8 million and 141 newspapers were given support. However, there is a high level of variation between the 
newspapers in the level of support. 
 2014: The average amount of subsidy received by the newspapers which were granted support 
was NOK 2.1 million. The total amount of subsidy granted was NOK 308.3 million and 
147 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 is maximum six years (the time limit was set by EFTA Surveillance 
Authority).  
 8. Trade effects of the subsidy 
 Support is assumed to have no trade effects due to the low level of exports/imports of newspapers. 
 
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 through 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.  G/SCM/N/284/NOR 
 
- 33 - 
 
   
6. Amount of subsidy 
 Estimated expenditure for 2013 was NOK 35.4 million. 
Estimated expenditure for 2014 was NOK 33.4 million. 
 7. Duration of the subsidy 
 Duration has not been specified, depending on Parliament appropriations.  8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.  
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 allowanc e amounting to 30% 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: 
 
2013: NOK 250 million. 2014: NOK 245 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. 
 8.2  Transport Support 
1. The authority responsible for the subsidy 
 
The Ministry of Trade, Industry and Fisheries. 
 G/SCM/N/284/NOR 
 
- 34 - 
 
  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 2013: NOK 26 million.  
Balanced budget for 2014: NOK 26 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  Sealing 
1. The authority responsible for the subsidy 
 
The Ministry of Trade, Industry and Fisheries.  
 
2. Legislation under which the subsidy is granted 
 
The Annual State Budget.  
 3. Policy objective of the subsidy 
 The objective is to contribute to maximum utilization of harp-seal quotas.   4. Form of the subsidy 
 Grants.   G/SCM/N/284/NOR 
 
- 35 - 
 
  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 2013: NOK 12 million.  
Balanced budget 2014: NOK 12 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.   
9  ASSISTANCE TO FORESTRY SECTOR 
9.1  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). 
 
2. 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 trust fund is a regulation under the Fore stry 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 property of the forest owners, but the use of the fund is regulated allowing only for specific purposes such as planting, road building, 
management planning, non-commercial thinning an d other activities. When used, the money is 
treated as income for the forest owner. However, a part of it (85%) is exempt from taxation. Any 
other monetary support is subtracted before the tax relief is given. In addition to the tax relief 
granted through the Forest Trust Fund, economic support is given for a similar range of activities 
that support sustainable forest management. Special attention is directed to areas with relatively 
low utilization of forest resources due to sparse ly developed forestry infrastructure, including 
coastal areas in western, mid and northern parts of Norway. G/SCM/N/284/NOR 
 
- 36 - 
 
  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 ta x system in Norway, and the purpose is to avoid 
progressive taxing of professions with fluctuatin g incomes. The marginal tax may thus be reduced 
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.  6. Amount of subsidy 
 Estimated cost of the forest funds tax concession is: In 2014 443 million NOK was credited and 333 million NOK was debited to the Forest Trust Fund, 
resulting in 1,347 billion NOK as a balance to the fund. Assuming that a forest landowner in 
average has a tax rate between 38% and 47%, a tax relief on 85% of 333 mill NOK can be compared to a grant of 120 mill NOK in 2014. 
 
2013: NOK 114 million. 2014: NOK 120 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  The Average Tax Assessment 
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 
 The yearly income tax for the forest owner is based on the last 5 years average income. The marginal tax may thus be reduce d 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 scheme also provides for tax advantages for forest income in the last years of ownership of a 
forest and also for forest expenses in th e first years of ownership of a forest.  
 
6. Amount of subsidy 
 
The cost of this tax concession is not estimated. 
 
7. Duration of the subsidy 
 The tax concession exists until modified or repealed. G/SCM/N/284/NOR 
 
- 37 - 
 
   
8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available. 
 
9.3  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 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 2013: NOK 23.4 million. 
Total subsidy expenditure for 2014: NOK 22.7 million  
 7. Duration of the subsidy 
 Starting date: 1971. Duration is not specified.   8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.   G/SCM/N/284/NOR 
 
- 38 - 
 
  9.4  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 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 
 
2013: NOK 165 million.  
2014: NOK 155 million.  
 7. Duration of the subsidy 
 
Duration is not specified.  
 8. Trade effects of the subsidy 
 Statistical data indicating trade effects are not available.   
9.5  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 scheme is funded through the Annual State Budget.  
 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.  G/SCM/N/284/NOR 
 
- 39 - 
 
   
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 
 2013: NOK 4.9 million.  2014: NOK 22 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.   
9.6  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.  3. To whom and how the subsidy is provided 
The grant is available for forest owners and owners of agricultural property. 
 4. Amount of subsidy 
2013: NOK 37 million. 
 5. Duration of the subsidy 
 
The scheme was finalized by the end of 2013, and is no longer in effect. 
 6. Trade effects of the subsidy 
Statistical data indicating trade effects are not available. 
 G/SCM/N/284/NOR 
 
- 40 - 
 
  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 38% of ordinary income (tax 
definition of certain net income), derived from farming, until the allowance reaches the maximum 
of NOK 166 400.  
6. Amount of subsidy 
 
Estimated cost of this tax concession is: 
 
2013: NOK 950 million. 2014: NOK 935 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 programs. 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 programs 
The various programs are listed under the sub headings 10.3.1 to 10.3.7 below. The notification 
covers schemes in force from 1 January 2012 until 31 December 2013. Numbers for 2014 were not 
available in advance of the deadline for this notification. Norwegian agricultural policy is 
implemented in pursuit of the overall objectives co ncerning food security, agricultural production 
throughout the country, improved productivity and sustainable agriculture.  
 
Target prices for farm products and the fiscal suppo rt to agriculture are agreed upon as integral 
parts of 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 G/SCM/N/284/NOR 
 
- 41 - 
 
  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 which 
a significant part is differentiated by criteria such as region, size of farms, 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. It is a policy objective to fa cilitate employment and economic activity in the 
countryside, maintenance of agricultural landscape, and to fulfil national food security policies 
including protecting arable land and securing a decentralized 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 liter 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 program is to equalize income between larger and smaller holdings.   
10.3.2  The meat and egg sectors 
Producers of meat from mutton receive a base deficiency payment on all output. Producers of beef 
cattle also receive structural income support. The support is paid as a lump sum to producers with 
more than 5 suckler cows. 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 favored regions. The payment is differentiated by region an d by type of meat. The rates are highest in the 
northernmost county in Norway. Transport support is granted to equalize farm gate return due to 
differences in distance from slaughterhouses, pr ocessing 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 paym ents per kg beef under the quality incentive 
support program for beef if the quality requirem ent 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.  
 
10.3.3  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 fl our 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 suppor t and storage support is also provided.  
 
10.3.5  Headage support 
The headage support is based on the size of cultivated area and the number of animals, and the 
support is differentiated by region , farm size and kind of animal. 
 10.3.6  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 to 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 is aimed at contributing to an agricultural production that leads to the least possible pollution and loss 
of nutrients. 
 G/SCM/N/284/NOR 
 
- 42 - 
 
  The economic measures under the environmental pr ograms shall cover the additional costs linked 
to the participation in the program through the maintenance of the agricultural landscape and other environmental requirements, and represent payments for the production of environmental 
goods. The payments under the National Enviro nmental program include payments per hectare 
and payments for grazing animals. 
 Organic production is subject to separate support programs.  
 
10.3.7  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 Re placement Scheme. Eligible farmers must have an 
approved substitute scheme and expenses must be documented.  
 10.3.8  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.  
 10.4  Expenditures and market structure 
Deficiency payments, the structural income 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 bu dget expenditures for 2012 and 2013 are listed in 
tables 1 to 5 below. All numbers are account figures. The source is mainly Proposition No 1 (2013-2014) and (2014-2015) to the Norwegian Par liament by the Ministry of Agriculture and 
Food, the Norwegian Agricultural Authority (Landbr uksdirektoratet) and the Norwegian Agricultural 
Economics Research Institute. Tables 1 to 10 pr ovide updated information 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.  G/SCM/N/284/NOR 
 
- 43 - 
 
  TABLE 1  
CHAPTER 1150, AGRICULTURAL AGREEMENT 
Million NOK 
 2012 2013 
Agricultural Development Fund 1159.4 1446.5 
Market Regulation 20.9 30.4 
Price Support 2207.3 2404.3 
Other direct payments to producers 8466.2 8515.1 
Total  11853.8 12396.3 
TABLE 2  
CHAPTER 1150 PRICE SUPPORT 
Million NOK 
 2012 2013 
Milk  553.5 578.0 
Beef, veal, mutton and pork 753.6 789.5 
Cereals 508.1 608.2 
Eggs 12.4 11.2 
Potatoes, fruit and vegetables 97.6 115,4 
Wool 128.3 125.7 
Other 153.8 176.3 
Total 2207.3 2404.3 
TABLE 3 
CHAPTER 1150, OTHER DIRECT PAYMENTS TO PRODUCERS 
Million NOK 
 2012 2013 
Structural income support 1344.8 1358.3 
Headage support, animals 2358.6 2419.8 
Grazing support 728.2 742.0 
Acerage and cultural landscape scheme 3694.1 3665.1 
Support to organic production 119.1 110.2 
Production support to market crops 38.2 37.8 
Other  183.2 181.9 
Total 8466.2 8515.1 G/SCM/N/284/NOR 
 
- 44 - 
 
  TABLE 4 
BASE DEFICIENCY PAYMENTS, AMOUNT PER UNIT 
(NOK per kg) 
 2012 2013 
Mutton 3.81 3.81 
TABLE 5  
REGIONAL DEFICIENCY PAYMENTS, AMOUNT PER UNIT 
(NOK per litre/kg) 
 2012 2013 
Milk 0.00/1.78 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 and sour 
cream 
2012 1531 476.0 39.0 
2013 1525 467.0 38.0 
TABLE 7  
CHEESE (MILLION KG) 
Year Production Exports Imports Consumption 
2012 89.9 13.3 11.4 88.1 
2013 92.6 14.1 11.6 90.1 
TABLE 8  
BUTTER (MILLION KG) 
Year Production Exports Imports Consumption 
2012 16.1 0.0 2.1 18.2 
2013 16.2 0.0 0.4 16.6 G/SCM/N/284/NOR 
 
- 45 - 
 
  TABLE 9 
CEREALS (MILLION KG) 
Year Production Exports Imports Consumption Wheat 
201218 258,6 0,1 467,6 726,1 
201319 197,8 0,1 547,1 744,7 
 
Year Production Exports Imports Consumption Rye 
20121 4,6 0,0 18,7 21,5 
20132 12,2 0,02 19,9 31,6 
 
Year Production Exports Imports Consumption Barley 
20121 541,9 0,1 51,5 593,3 
20132 481,4 0,1 33,1 514,4 
 
Year Production Exports Imports Consumption Oats 
20121 219,9 0,02 41,1 261,0 
20132 212,4 0,01 45,4 257,9 
 
TABLE 10  
MEAT (MILLION KG) 
Year Production Exports Imports Consumption Beef and veal 
2012 78.0 0.9 18.0 97.4 
2013 83.7 0.9 14.2 97.1 
 
Year Production Exports Imports Consumption Lamb 
2012 22.9 0.0 2.7 26.2 
2013 23.7 0.1 3.2 26.8 
 
Year Production Exports Imports Consumption Pork 
2012 131.5 5.7 2.6 129.1 
2013 127.5 6.9 5.0 126.7 
 
Year Production Exports Imports Consumption Poultry 
2012 91.2 0.8 2.5 99.6 
2013 104.4 0.8 2.2 103.6 
 
 
                                               
18 Data provided cover the marketing year 2012/2013. Source: Norwegian Agricultural Authority 
19 Data provided cover the marketing year 2013/2014. Source: Norwegian Agricultural Authority G/SCM/N/284/NOR 
 
- 46 - 
 
  TABLE 11  
EGGS (MILLION KG) 
Year Production Exports Imports Consumption 
2012 61.9 1.2 1.3 62.1 
2013 65.1 1.9 0.2 63.5 
 
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