WORLD TRADE  
ORGANIZATION  G/SCM/N/186/NOR 
16 October 2009 
 (09-5094) 
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 notification, dated 6 October 2009, is being circulated at the request of the 
Delegation of Norway.    
_______________ 
 
 G/SCM/N/186/NOR 
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  TABLE OF CONTENTS 
 
Page
 
I. INTRODUCTION ................................................................................................................... .4 
II. ASSISTANCE TO RESEARCH AND DEVELOPMENT SCHEMES ...............................4  
1. Industrial R&D Contracts ....................................................................................................... 4 
2. Public R&D Co ntracts........................................................................................................... ...5 
3. Industrial R&D program mes and projects ............................................................................6  
4. Tax Credit for Ex penses on R&D............................................................................................8  
5. Scheme for research and development concerning gas technologies with 
improved environmental performa nce ("Gassnova Aid Scheme")......................................9  
6. The Wood-based Innovation Scheme....................................................................................10  
7. Norwegian centres for Research-based Innovation .............................................................11  
8. European CO 2 Technology Centre Mongstad (TCM) project............................................12  
III. ASSISTANCE TO DISADV ANTAGED REGIONS ...........................................................13  
1. Regional Investment Grant....................................................................................................13  
2. Scheme for Newly established small enterprises..................................................................14  
3. The Norwegian Corporation for Industria l Estates and Development (SIVA).................15  
4. National Programmes for Regional Development ...............................................................16  
5. Regional transport aid......................................................................................................... ...17 
6. SME-aid for regional development .......................................................................................18  
7. Training aid for regional development .................................................................................18  
IV. ASSISTANCE TO SMALL AND MEDI UM SIZED ENTERPRISES..............................19  
1. Development Grant scheme ...................................................................................................19  
2. Seed Capital Funds ............................................................................................................. ....20  
3. Guarantee scheme for loans and credits...............................................................................21  
V. ASSISTANCE TO ENVIRONMENT...................................................................................22  
1. Aid for development and knowledge and information on sustainable production 
and consumption ................................................................................................................ .....22  
2. The Energy Fund ................................................................................................................ ....23  
3. The Bioener gy Scheme ........................................................................................................... 24 
VI. ASSISTANCE TO EXPORT PROMOTION.......................................................................25  
1. Export development pr ogramme for SMEs .........................................................................25  
2. Export Credit Financing Scheme ..........................................................................................25  
3. Export Credit Guarantees......................................................................................................2 6 
4. Exemption from electricity tax for ener gy intensive industries, paper and pulp 
industry and greenhouses....................................................................................................... 27 
VII. ASSISTANCE TO SPECIFIC INDUSTRY SECTORS......................................................28   G/SCM/N/186/NOR 
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  1. Reduction of CO 2-tax on mineral oils and reduced rate and exemption from the 
tax on mineral oil (base-tax on heating oil) for the paper and pulp, herring meal and fish meal industries and exemption from the CO
2-tax for undertakings 
covered by the EU Emission Trading Scheme......................................................................28  
2. The Press Grant Scheme ........................................................................................................3 0 
3. National programmes for the promotio n of Norwegian space industry ............................31  
4. International promotion of Norway as a tourist destination ..............................................31  
5. Research, development and innovation (in the maritime industry) ...................................32  
VIII.  ASSISTANCE TO THE FISHERY SECTOR .....................................................................33  
1. Transport Support.............................................................................................................. ....33  
2. Interest Rate Subsidies for Fishin g Vessels for Domest ic Deliveries..................................34  
3. Support to the Modernisation and Capacity  Adjustment of the Fishing Fleet;  
Decommissioning Grant – The Structural Fund..................................................................35  
4. Retrieval of lost fishing ge ar (former Research fishery) .....................................................36  
5. Sealing........................................................................................................................ ..............36  
IX. ASSISTANCE TO FORESTRY SECTOR...........................................................................37  
1. Tax Concessions in Forestry:  The Fo rest Trust Fund and the 5-year Average 
Tax Assessment ................................................................................................................. ......37  
2. Subsidies for Forest Management Planning.........................................................................39  
3. Subsidies for industrial and environmental purposes in forestry ......................................40  
4. Subsidies for Round Wood Sale and Transport in Forestry...............................................41  
X. THE AGRICULTURAL SECTOR.......................................................................................42  
1. Introduction................................................................................................................... ..........42  
2. Information on the subsidy programmes..............................................................................42  
3. Expenditures and market structure ......................................................................................43  
 G/SCM/N/186/NOR 
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  I. INTRODUCTION 
This report covers state aid programmes and schemes that were in operation in 2007 
and 2008.  The amount of subsidies which is repor ted, refer to actual pa yments in the fiscal 
years 2007 and 2008.  As regards the agricultural sect or, the notification covers schemes in force from 
1 January 2006 and until 31 December 2007, as numbers for 2008 were not available at the time of 
writing.   
 
Through Norway's participation in the Eu ropean Economic Area (EEA), Norwegian 
legislation, under which subsidies are granted, is cons istent with the legislation of the European Union 
(EU) in this field with the exception of aid to the agriculture and fisheries sectors.  All subsidy 
schemes to sectors other than agriculture and fi sheries are notified 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 authoriti es are Innovation Norway and the Research Council 
of Norway.   
 
II. ASSISTANCE TO RESEARCH AND DEVELOPMENT SCHEMES 
1. Industrial R&D Contracts 
1. The authority responsible for the subsidy
 
 
 Administered by Innovation Norway on behalf of the Ministry of Trade and Industry.   
 2. Legislation under which the subsidy is granted
 
 
• The Annual State Budget approved by the Parliament. 
• Specific Guidelines for Public R&D Contracts and Industrial R&D Contracts approved by 
the Ministry of Trade and Industry.   
 
3. Policy objective of the subsidy  
 
The purpose is to stimulate Industrial R&D (Product development) and building business 
networks.   
 
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 major customer and a lesser subcontractor.   
 
Conditions applying from 1 April 1995 
 
Subsidies are granted to applied research and development projects in accordance with 
international state aid guidelines.     G/SCM/N/186/NOR 
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  Costs eligible for aid are:  personnel cost s, overhead, current costs, consultancy and 
equivalent services and instrument and equipment.  Only costs directly related to the accomplishment 
of the projects are eligible.     The condition is that the aid is necessary to start up and realise a project.   
 
6. Amount of subsidy
 
  Total payment in 2007 was NOK 133.65 million.    Total payment in 2008 was NOK 179.82 million.   
 
 The average subsidy per project of new grants in 2008 was about NOK 1.34 million.    7. Duration of the subsidy
 
 
 Starting date:  1 January 1994.  Duration has not been specified.   
 8. Trade effects of the subsidy
 
 
Statistical data showing trade effects are not available.   
 2. Public R&D Contracts 
1. The authority responsible for the subsidy
 
  Administered by Innovation Norway on behalf of the Ministry of Trade and Industry.    
2. Legislation under which the subsidy is granted
 
 
• The Annual State Budget approved by the Parliament.   
• Specific Guidelines for Public R&D Contracts and Industrial R&D Contracts approved by 
the Ministry of Trade and Industry.   
 3. Policy objective of the subsidy
 
 
 Stimulate R&D (Product development) and building business networks.    
Improve the quality and effectiveness of servi ces supplied by public entities by implementing 
new and improved technology.    
4. Form of the subsidy 
 
  Grants.  5.  To whom and how the subsidy is provided
 
 
A Public R&D Contract is an agreement be tween a Norwegian enterprise and a public 
authority that asks for the development of a new produc t or process.  The receiver of the subsidy is the 
producer.  The project must represent something substantially new.    
The bulk of the projects will typically be within  the stage of basic industrial research and/or 
applied research.   G/SCM/N/186/NOR 
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  Conditions applying from 1 April 1995 
 
Subsidy is granted to applied research and development projects in accordance with 
international state aid guidelines.   
Costs eligible for aid are:  personnel cost s, overhead, current costs, consultancy and 
equivalent services and instrument and equipment.  Only costs directly related to the accomplishment 
of the projects are eligible.   The condition is that the aid is necessary to start up and realise a project.   
 
6. Amount of subsidy
 
  Total payment in 2007 was NOK 25.34 million.    Total payment in 2008 was NOK 50.20 million.   
 
The average subsidy per project of new grants in 2008 was about NOK 1.15 million.   
 7. Duration of the subsidy
 
  Starting date:  1968.  Duration has not been specified.   
 
8. Trade effects of the subsidy
 
 
Statistical data indicating trade effects are not available.   
 3. Industrial R&D programmes and projects  
1. The authority responsible for the subsidy
 
 
Administered by the Research Council of Norway (RCN). RCN's funds come from:   
 
• the Ministry of Education and Research 
• the Ministry of Trade and Industry 
• the Ministry of Petroleum and Energy 
• the Ministry of Fisheries and Coastal Affairs 
• the Ministry of Agriculture and Food 
• the Ministry of Environment 
• the Ministry of Transport and Communications 
• the Ministry of Labour and Social Inclusion 
 2. Legislation under which the subsidy is granted
 
  Funds from each ministry come from the State Budget which is approved by the Norwegian Parliament by the end of each year.  New programme s have to be approved by the Ministry of Trade 
and Industry before they can be started.    
 
Guidelines for the subsidy programmes as such ha ve been approved by the Ministry of Trade 
and Industry and subsequently by the EFTA Surve illance Authority according to the EEA-agreement.    G/SCM/N/186/NOR 
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  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:    
• international competitiveness and sustainabl e business and industry based on knowledge, 
expertise, network and learning.   
• industrial R&D efforts emphasising long -term socio-economic dividends.   
• an increase in the number of enterprises that ta ke a systematic approach to research and 
development.   
• collaboration and networking.   
 4. Form of the subsidy
 
 
Support is given as grants to individual units  to whom RCN has a contract with.   
 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 case s also are included in this co-operation.  Most projects include 
more than 5 participants.  The bulk of the project s are typically mostly within the stage of basic 
industrial research and applied research.    
Enterprises all over Norway and from all Norwegia n industry participate in projects.  SMEs 
are given priority by RCN.  Where private enterprises are contractors, maximum aid intensity is not allowed to exceed 50 per cent of the total project  cost.  Only costs directly related to the 
accomplishment of the R&D projects are eligib le.  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-contra ctors prove that they can put in other funds 
than the funds from RCN (in form of funds from other sources or in form of own fund or as input of 
own man-hours).  The individual R&D-contractors ma y participate in more than one R&D project, 
both as contractor and as sub-contractors (participants).    
6. Amount of subsidy
 
 
Total payment for the year 2007 for new and current  projects was NOK 773.2 million.  The 
number of new  projects was 341.  The average subsidy for 2007 per new project was NOK 728 012, 
i.e. NOK 248.3 million in total.  For the total project period and for all new projects together the 
amount of subsidy amounts to approximately NOK 874 million.   
  Total payment for the year 2008 for new and current
 projects was NOK 859.7 million NOK.  
The number of new  projects was 340.  The average subsidy for 2008 per new project was 
NOK 708 391, i.e. NOK 240.8 million in total.  For the total project period and for all new projects 
together the amount of subsidy amounts to approximately NOK 874 million.   G/SCM/N/186/NOR 
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  7. Duration of the subsidy
 
 
Duration for RCN's the 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.    
4. Tax Credit for Expenses on R&D 
1. The authority responsible for the subsidy
 
  The Ministry of Finance through the Tax Administration.  The Research Council of Norway is responsible for approving the R&D content.    
2. Legislation under which the subsidy is granted
 
  The Taxation Act.    3. Policy objective of the subsidy
 
 
 Stimulate the business sector to increase its R&D activities.   
 4. Form of the subsidy
 
  Tax concession (tax credit).   
 
5. To whom and how the subsidy is provided
 
   All sectors and regions, there is no discrimination between se ctors or regions.  The Scheme 
provides tax credits for industrial and commercia l enterprises on their R&D expenses.  The aid 
scheme supports internal R&D projects as well as purchases from approved universities, institutes and 
laboratories.  The tax credit is 20 per cent of R& D expenses (18 per cent for large companies).   
  Until the tax year 2008 (book year 2009), expenses per company were limited to NOK 4 million for internal R&D, and NOK 8 million for external purchases.  The total basis per 
company should not exceed NOK 8 million.  Si nce 1 January 2009, the corresponding limits are 
NOK 5.5 and 11 million.  Projects have to be approved as R&D ex ante  by the Research Council of 
Norway, and the project 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 
 
 
2007:  NOK 1,134.4 million.   
2008:  NOK 970 million (estimated).   
 7.  Duration of the subsidy 
 
 
 No time limit.   
  G/SCM/N/186/NOR 
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  5. Scheme for research and development conc erning gas technologies with improved 
environmental performance ("Gassnova Aid Scheme") 
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.   
• The Gas Technology Fund.   
 3. Policy objective of the subsidy
 
 
The purpose is to stimulate development and testing of CO 2 capture and storage technologies.  
The scheme supports research, development, testi ng and demonstration of new technologies.   
 
Short term objectives:   
 
• Qualify and reduce cost s associated with CO 2 capture from power plants.   
• Establish methods for reliable geological storage of CO 2 .   
 
Longer term objectives:   
 
• Improve or develop technologies with the poten tial to significantly improve efficiency and 
profitability in the field of power production with CO 2 capture.   
• Develop robust methods for CO 2 storage.  This means the methods must satisfy the 
requirements for approval as a climate measure pursuant to international agreements.   
 4. Form of the subsidy
 
  Grants.   
 
5. To whom and how the subsidy is provided
 
 
Support is granted to a variety of CO 2 capture and storage projects within the electricity and 
industrial sector.  Projects eligible for support are research and development and demonstration 
projects within the field of CO2 capture and storage.    
Support from Gassnova may be granted  to three types of project scope 
 
• Technological and business oriented feasibility studies in which new technologies are 
assessed individually or as part of a value ch ain.  Studies shall focus on the technological 
and commercial potential and cost effectiveness of new solutions.   
• Financial assistance to testing of technologi es in pilot scale conditions e.g. individual 
process stages.   
• Financial assistance to demonstration of technol ogies.  Testing and operation of plants in 
a technical or semi industrial scale, where th e purpose is to accumulate data which can 
demonstrate performance, availability, relia bility and provide a basis for design 
optimisation.  The project must generate scalable technical and commercial design parameters to support design and comme rcial evaluation of full scale industrial 
application, and be adequate to enable suppliers to offer functional guarantees.   G/SCM/N/186/NOR 
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  6. Amount of subsidy
 
  Total payment in 2007 was NOK 8.9 million.    Total payment in 2008 was NOK 7.2 million.    
7. Duration of the subsidy
 
  Starting date:  30 November 2005.  Duration:  10 year.    8. Trade effects of the subsidy
 
 
Statistical data showing trade effects are not available.   
 
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 w ood through research, development and innovation, as 
an environmental friendly alternativ e to other building materials.   
 
4. Form of the subsidy
 
 
Grants.   
 5. To whom and how the subsidy is provided
 
 
Aid is granted for enterprises involved in th e production or developm ent of wood products, 
entrepreneurs, architects, organisations for the wood industry, research and development institutions 
which cooperate with enterprises.    
The scheme is open for all regions and all sectors, as long as the project contributes to the 
objective of the scheme.    6. Amount of subsidy
 
 
2006/7:  NOK 4.9 million.   
2008:  NOK 19.5 million.   
 7. Duration of the subsidy
 
 
The scheme was established in 2006, and will be  in force until 31.12.2013.  The scheme is 
however dependent on annual allocations over the state budget.    G/SCM/N/186/NOR 
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  8. Trade effects of the subsidy  
 
Statistical information indicating trade effects are not available.   
 
7. Norwegian centres for Re search-based Innovation 
1.  The authority responsible for the subsidy  
 
The Ministry of Education and Research th rough the Research Council of Norway.   
 2.  Legislation under which the subsidy is granted  
 
 
 Fund from The Ministry of Education and Research comes from the State Budget which is approved by the Norwegian Parliament by the end of each year.    3.  Policy objective of the subsidy
 
 
 It is believed that the notified scheme will cont ribute 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 resear ch 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 institu tions to whom RCN has a contract with.   
 5.  To whom and how the subsidy is provided
 
 
 The Norwegian authorities have notified a scheme concerning the setting up of CRIs 
involving the co-operation of private and public  bodies with financial support from the Research 
Council of Norway (RCN) in the form of grants.     The CRI grants are based on an open call wher e a host institution and partners apply for CRI 
status.  The scheme is open to participation of larg e, internationally oriented enterprises as well as 
research-intensive small and medium-size enterprise s.  Any undertaking, irrespective of its size or 
field of activity may participate in the scheme.  Furt hermore, 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 No rway may thus serve as a host institution for a 
CRI.  The general rule is that the CRI will consist of research groups lo cated 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.   G/SCM/N/186/NOR 
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   The RCN will cover up to a maximum 50 per cent of the CRI 's annual budget.  The host 
Institution with partners undertakes to contribute at least 50 per cent of the centres' annual budget.  At 
least 25 per cent of the CRI's budget must come from undertaking partners.     The CRIs will dedicate the greatest part of thei r resources to fundamental research.  Indeed, in 
general, 75 per cent of the research carried out is to  be fundamental research and the remaining 25 per 
cent is to cover industrial research.  No pre-compet itive research is to be car ried out in the CRIs.  
Most projects will cover both fundamental and indust rial research but there may be some projects 
which will consist of industrial research exclusively.    
6.  Amount of subsidy 
 
 
2007:  NOK 83.9 million.   2008:  NOK 122.4 million.   
 
7.  Duration of the subsidy 
 
 
Duration from 2007 until 2015.   
 8.  Trade effects of the subsidy
 
 
Statistical data indicating trade effects are not available.   
 
8. European CO 2 Technology Centre Mongstad (TCM) project 
1. The authority responsible for the subsidy  
 
Managed by Gassnova SF on behalf of the Ministry of Petroleum and Energy.   
 2. Legislation under which the subsidy is granted
 
 
The Annual State Budget approved by the Parliament.   
 
3. Policy objective of the subsidy  
 
The objective of the TCM is to test, verify , and demonstrate different concepts and 
technologies capable of reducing costs and risk s related to large scale carbon capture.   
 
The test facilities at TCM will test two pos t-combustion technologies, amine absorption and 
ammonium carbonate absorption (c hilled ammonia).  Both technologies, provided by two different 
suppliers, will be tested in parallel.  TCM w ill have a capture capacity of 100 000 tons of CO 2 a year 
from two different sources of flue gas.    4. Form of the subsidy
 
 
Grants.   
 5. To whom and how the subsidy is provided
 
 
The TCM project is to be operated by a so- called unlimited company with shared liability.  
StatoilHydro will participate with a share of 20 per cent in the Company, whereas the State will cover 
the remaining 80 per cent.  Should other undertakings invest in the Company, the State's share will be 
reduced accordingly.    G/SCM/N/186/NOR 
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  The State participation will be managed by G assnova SF, a state-owned enterprise.  Gassnova 
SF manages the Norwegian State's inter est in carbon capture and storage.   
 6. Amount of subsidy
 
 
 Total payment in 2008 was NOK 149 million.   
 7. Duration of the subsidy
 
 
Construction of the TCM will start in 2009 an d is planned to be completed in 2011.  
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 showing trade effects are not available.   
 
III. ASSISTANCE TO DISADVANTAGED REGIONS 
1. Regional Investment Grant 
1.  The authority responsible for the subsidy  
 
 The Ministry of Local Government and Regional Development through the Norwegian 
Industrial and Regional Development Fund (SND) from 1 January 2004 Innovation Norway has taken 
over the responsibilities of SND and 16 county municipalities.    2.  Legislation under which it is granted
 
 
− Act no. 130 of 19 December 2003.   
− Guidelines of January 2005 on "Use and admini stration of chapter 551 post 60 Grants to 
County Municipalities for Regional Development".1 
− Regulation of May 2003 on Investment aid and geographical delimitation of areas eligible for 
regional aid.2   
− The Annual State budget.   
 3.  Policy objective of the subsidy
 
 
 Regional aid;  job creation, contribute to de velop permanent and profitable business 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 ar eas.  SMEs are given priority.   
 
                                                     
 
1 Reviewed guidelines in effect from 1.1.2007.   
2 Reviewed regulation in effect as of 1.1.2007.   G/SCM/N/186/NOR 
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   The scheme is available for enterprises in a ll sector 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.   
  Grant is 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-ope ration etc. and not to tangible investment) and R&D-projects.   
  The assisted area is divided in three zones.  In zone A the general aid intensity is maximum 
25 per cent of the investment costs and SMEs may obt ain in addition 5 percentage points.  In zone B 
the general aid intensity is maximum 20 per cent of the investment costs and SMEs may obtain in 
addition 5 percentage points.  In zone C the gene ral aid intensity is 10 per cent and SMEs may obtain 
in addition 10 percentage points.     Grant falling under the notion "soft aid" must not exceed 50 per cent of the eligible costs in all 
zones and is confined to SME (max. 250 employees is  one of three criteria).  Grant to R&D-projects 
is in general limited to 30 per cent of the investment  in zone A, B and C.  SME may obtain in addition 
a grant of 10 percentage points.    6.  Amount of subsidy
 
 
 Total payment in 2007:  NOK 185 million.   
 Total payment in 2008:  NOK 264.6 million.    7.  Duration of the subsidy
 
 
 Starting date:  1987.  Duration has not been specified.   
  8.  Trade effects of the subsidy
 
  Information on trade effects is not available.    2. Scheme for Newly established small enterprises 
1.  The authority responsible for the subsidy
 
  The Ministry of Local Government and Regional Development.  The scheme is administered by local municipalities and the Norwegian Industrial and Regional development fund (SND) 
(From 1.1.2004 Innovation Norway took ove r the responsibilities of the scheme).   
 2. Legislation under which the scheme is granted
 
 
− The Annual State budget (Ministry of local  government and regional development) 
chapter 551 post 60 and chapter 552 post 72,  
− Guidelines of January 2005 on "Use and admini stration of chapter 551 post 60 Grants to 
County Municipalities for Regional Development", 
− Guidelines of January 2005 on "Use and admi nistration of chapter 552 post 72 National 
Schemes for regional development".   
 3. Policy objective of the subsidy
 
  Provide assistance to newly established small enterprises in a start up phase (first five years).    G/SCM/N/186/NOR 
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  4. Form of the subsidy  
  Grants.    5. To whom and how the subsidy is provided
 
 The subsidy is available to small enterpri ses in regions eligible for regional aid.   
 6.  The amount of subsidy
 
  2008:  NOK 5.88 million.   
 
7.  Duration of the subsidy
 
  2008-2013.    
8.  Trade effects of the subsidy
 
  Statistical data showing trade effects are not available.    
3. The Norwegian Corporation for Industr ial Estates and Development (SIVA) 
1.  The authority responsible for the subsidy
 
 
 The Ministry of Trade and Industry.    The Ministry of Local Government and Regional Development.    2.  Legislation under which it is granted
 
 
 The State Budget – Ministry of Trade and Industry, Ch. 2426.70.    The State Budget - Ministry of Local Governme nt and Regional Development, Ch. 552.72.   
  3.  Policy objective
  
 
 SIVAs main objective is to contribute to inno vation and industrial deve lopment by offering 
real estate locations and measures to facilitate i nnovation and value creation na tionwide.  SIVA has a 
special responsibility for promoting innovation and growth in rural areas.     The objective of the innovation scheme is to contribute to strong local and regional 
environments for innovation, busin ess development and employment.   
 4.  Form of the subsidy
 
  No direct grants to the enterprises, but support to innovation progr ammes and networking 
activities.   
 
5.  To whom and how the subsidy is paid
 
  Support is granted to a variety of activities, programmes and sectors.  Most recipients are 
SMEs according to the relevant EEA-definitions.   
 G/SCM/N/186/NOR 
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   Grants cover costs eligible under the notion of Research and Development and Innovation aid 
(RDI).  The Innovation Scheme is notified to th e EFTA Surveillance Authority under the State Aid 
Guidelines for RDI aid.    6.  The amount of subsidy
 
 
 Budgeted to SIVA in 2007:  NOK 97.5 million.    Budgeted to SIVA in 2008:  NOK 104.5 million.    7.  Duration of the subsidy
 
 
 Starting date (Ministry of local Governme nt and Regional Development):  1992.   
 Starting Date (Ministry of Trade and Industry):  2005.    Duration has not been specified.     
8.  Trade effects of the subsidy
 
 
 Statistical data showing trade effects are not available.   
 
4. National Programmes for Regional Development 
1. The authority responsible for the subsidy  
 
 Ministry of Local Government and Regional Development in most of the cases through the 
Norwegian Research Council and the Norwegian In dustrial and Regional Development Fund (SND) 
(From 1.1.2004, Innovation Norway has ta ken over the responsibilities of SND).   
 
2. Legislation under which the subsidy is granted  
 
− Guidelines of January 2005 on "Use and admi nistration of chapter 552 post 72 National 
Schemes for regional development". 
− The Annual State budget.   
 3. Policy objective of the subsidy
 
 
 Regional.  An important objective is to create new structures and ways of collaboration between R&D centres and private SMEs.  The overall aim is to stimulate industrial innovation.   
 4. Form of the subsidy
 
 
 Grants.   
 5. To whom and how the subsidy is provided
 
  Mainly SME (max. 250 employees is one out of three criteria) in private sector located in 
assisted areas.  Most of the funds available are used  to support R&D - infrastructure.  The major part 
to research institutes/centres locat ed in assisted areas, as well as regional development agencies for 
use in assisted areas.  Single enterprises may not receive support from this scheme unless they are 
involved in a cooperation pluri-annual progr amme of broader national interest.   
  G/SCM/N/186/NOR 
 Page 17 
 
 
   Other criteria for the subsidy to enterprises are as for "Regional Grants for the Development 
of Business and Industry" admini stered by The Norwegian Industrial and Regional Development 
Fund (from 2004 Innovation Norway) and the country municipalities.    6. Amount of subsidy
 
 
 Payment in 2007:  NOK 146.5 million.    Payment in 2008:  NOK 6.5 million.    7. Duration of the subsidy
 
 
 Starting date:  1986.  Duration has not been specified.    8. Trade effects of the subsidy
 
 
 Statistical data showing trade effects are not available.   
 
5. Regional transport aid 
1. The authority responsible for the subsidy  
  The Ministry of Local Government and Regi onal Development, The County Municipalities of 
Sør-Trøndelag, Nord-Trøndelag, Nordland, Troms, Finnmark.   
 2. Legislation under which the subsidy is granted
 
  The Annual State budget.   
 
3. Policy objective of the subsidy
 
  Stimulate to  economic growth in less developed areas by means of reducing the competitive 
disadvantages due to long distances, difficult tr ansport conditions and scattered population.   
 
4. Form of the subsidy
 
  Grants.    5. To whom and how the subsidy is provided
 
 
The purpose of the scheme is to partly offset a dditional transport costs of firms located in the 
northernmost low population density areas of Norway .  Additional transport costs mean the extra 
costs occasioned by movements of goods within the borders of Norway.  Under the scheme aid is 
granted in relation to transport of raw material s or semi-finished goods that will undergo significant 
processing at the premises of the consignee, and tr ansport from places within the area of finished or 
semi-finished goods that have undergone signifi cant processing within the eligible area.   
 6. Amount of subsidy
 
  Payment in 2007:  NOK 16.5 million.   
 Payment in 2008:  NOK 22.59 million (estimates).   G/SCM/N/186/NOR 
Page 18  
 
  7. Duration of the subsidy
 
  The scheme in its current form is in effect until 2013.    8. Trade effects of the subsidy
 
 
 Statistical data showing trade effects are not available.   
 
6. SME-aid for regional development 
1. The authority responsible for the subsidy  
 
 The Ministry of Local Government and Regional Development, Innovation Norway.    2. Legislation under which the subsidy is granted
 
 
The Annual State Budget.   
 3. Policy objective of the subsidy
 
  Stimulate the development of SMEs.    
4. Form of the subsidy
 
  Grants.    5. To whom and how the subsidy is provided
 
 
 Aid for consultancy costs of services provi ded by outside consultants and aid for SME 
participation in fairs.    6. Amount of subsidy
 
 
 2007:  NOK 299 million.   
 2008:  NOK 200.56 million.    7. Duration of the subsidy
 
 
 The scheme in its current form is in effect until 31.12.2013.   
 8. Trade effects of the subsidy
 
  Statistical data showing trade effects are not available.    7. Training aid for regional development 
1. The authority responsible for the subsidy
 
  The Ministry of Local Government and Regional Development, Innovation Norway.    
2. Legislation under which the subsidy is granted
 
 
The Annual State Budget.    G/SCM/N/186/NOR 
 Page 19 
 
 
  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
 
   2007:  NOK 156 mill.   
 2008:  NOK 164.97 mill.   
 7. Duration of the subsidy
 
  The scheme in its current form is in effect until 31.12.2013.   
 
8. Trade effects of the subsidy
 
  Statistical data showing trade effects are not available.    
IV. ASSISTANCE TO SMALL AND MEDIUM SIZED ENTERPRISES 
1. Development Grant scheme 
1. The authority responsible for the subsidy
 
  The Ministry of Trade and Industry through Innovation Norway.    2. Legislation under which the subsidy is granted
 
 
• Act no 130 of 19 December 2003 on Innovation Norway.   
• Letter from the Ministry of Industry and Energy to the SND of 21 February 1995 - 
"Retningslinjer for Statens nærings- og distriktsutviklingsfonds landsdekkende 
virkemidler".   
• (New:  Guidelines for the Development Grant,  approved by the Ministry of Trade and 
Industry 20 October 2000.)   
• The Annual State budget.   
 
3. Policy objective of the subsidy  
  To give assistance to SME, and to impr ove the efficiency of the industry.   
 4. Form of the subsidy
 
 
 Grant.   G/SCM/N/186/NOR 
Page 20  
 
  5. To whom and how the subsidy is provided
 
 
The scheme is primarily intended for SME and support is granted to a variety of projects.  It is 
available for all sectors except for insurance, banking and finance, shipping, oi l and gas exploration, 
public administration and public sector commercial enterprises.   
 
Conditions applying from 1 April 1995 
 
Subsidy allowed to SMEs (max. 250 employ ees in one out of three criteria):   
 
• Maximum 50 per cent of costs eligible under the notion of "soft aid" (costs must meet 
one-off requirements of up-to-date knowledge in various fields or be relied to establishing 
of network co-operation etc., no physi cal investment, no operating aid);   
• Maximum 35 per cent of costs eligible for a pplied research and development projects;   
• Maximum 7.5 per cent to physical investment (maximum 15 per cent to small 
enterprises);   
• Larger companies are only allowed a maximum aid intensity of 25 per cent to R&D 
projects or subsidy up to € 50.000 in respect of one defined category over a three years period.   
 
6. Amount of subsidy
 
  Total payment in 2007 was NOK 142 million.    Total payment in 2008 was NOK 195.08 million.   
 
7. Duration of the subsidy
 
  Starting date:  1 January 1993.  Duration has not been specified.    8. Trade effects of the subsidy
 
 
Statistical data showing trade effects are not available.   
 
2. Seed Capital Funds 
1. The authority responsible for the subsidy  
 
 The Norwegian Ministry of Trade and Industry through Innovation Norway.    2. The legislation under which the subsidy is granted
 
 
• State budgets 1997-2000 and 2004-2005.   
 
3. Policy objective of the subsidy  
  Increase access to seed capital to ne w innovative high-growth firms.   
 4. Form of subsidy
 
 
 Loans to investors on favourable terms.    G/SCM/N/186/NOR 
 Page 21 
 
 
  5. To whom and how the subsidy is provided  
 
The subsidy is provided to investors in order to make them increase their supply of early stage 
venture capital.  Investors participating must pr ovide same amount of capital as the state.  The 
investors operate the scheme through six independ ent and privately owned seed capital funds.   
 
6. Amount of subsidy  
 
- Total loans of NOK 1 755 million.   - Total payment by the end 2007 is NOK 499 million.   
- Total payment by the end 2008 is NOK 609 million.   
 7. Duration of the subsidy
 
  Until the funds cease operations, but no longer than 15 years from the establishment of the 
funds.   
 8. Trade effects of the subsidy
 
 
Statistical data showing trade effects are not available.   
 3. Guarantee scheme for loans and credits 
1. The authority responsible for the subsidy
 
  The Norwegian Ministry of Trade and Industry through Innovation Norway.    
2.  The legislation under which the subsidy is granted
 
 
• The Annual State Budget.   
 3. Policy objective of the subsidy
 
  To give assistance to SMEs and to impr ove the efficiency of the industry.   
 
4. Form of the subsidy
 
  Guarantee.    
5.  To whom and how is the subsidy granted
 
 
• Support is granted to a variety of projects in different sectors.   
• The scheme is primarily intended for SMEs .  The primary objective is expansion, 
modernization, restructuring, development and new establishment in industry.   
• Guarantees are available for all sectors ex cept for insurance, banking and finance, 
shipping, oil and gas exploration, public administration and public sector commercial 
enterprises.   
• Guarantee premium:  1-1.5 per cent depe nding on coverage (50-75 per cent).   
• Duration:  Working capital normally < 3 years, max 4 years, extension to 7 years.   
• Investment loans:  "Lifespan of investment" up to 12 years.   
• Deficiency guarantees on a pro rata basis, al so working capital facility guarantees cover 
up to 75 per cent of possible losses.  However the guarantees will normally be limited to G/SCM/N/186/NOR 
Page 22  
 
  50 per cent of possible losses.  Underwriting fees is 1 per cent for guarantees covering up 
to 50 per cent of possible losses and 1.5 per cen t for higher liability, for losses higher than 
50 per cent.   
• The duration of a working capital facility guar antee is normally 3 years.  The maximum 
length is 4 years.  The period of duration can be prolonged.  However, the total length of a 
guarantee may under no circumstances exceed 7 years.  The duration of guarantees on 
investment loans is limited to 12 years and may not exceed the working life of the investment.  Guarantees can only enter into force if bankruptcy or debt negotiations are 
started.  It is then assumed that the ru les of the bankruptcy law are followed.   
 6. Amount of subsidy
 
 
Guarantees paid out for 2007:  NOK 2.66 million.   Guarantees paid out for 2008:  NOK 0.17 million.   
 7.  Duration of the subsidy
 
 
 Duration has not been specified.    8.  Trade effects of the subsidy
 
 
Statistical data showing trade effects are not available.   
 
V. ASSISTANCE TO ENVIRONMENT 
1. Aid for development and knowledge and info rmation on sustainable production and 
consumption 
1. The Authority responsible for the subsidy  
 
 Ministry of the Environment.    2. The legislation under which the subsidy is granted
 
  The Annual State Budget (Chapter 1400, 73).   
 
3. Policy objective of the subsidy
 
 
Promote information and capacity building for more sustainable production and consumption 
patterns, including waste reduction and recycling.   
 
4. Form of the subsidy  
  One-off investment grant to projects.  Financial support is given to some companies.    
5. To whom and how the subsidy is provided
 
  Support is granted to a few projects.  Financial support to these companies takes most of the aid available.    G/SCM/N/186/NOR 
 Page 23 
 
 
  6. Amount of the subsidy  
 
Total payment in 2007 was NOK 30.2 million. Total payment in 2008 was NOK 22.1 million. 
 
7. Duration of the subsidy
 
 
Starting date:  1 January 1990.  Duration has not been specified, but the subsidies have been 
varying back and forth the last two years.    
8. Trade effects of the subsidy
 
  Statistical data showing trade effects are not available.    2. The Energy Fund
3 
1. The authority responsible for the subsidy  
 
The Ministry of Petroleum and Energy is respons ible for the scheme.  Enova SF is responsible 
for implementation and administration of the scheme.    2. Legislation under which the subsidy is granted
 
 
− Parliamentary decision of 5 April 2001 with provisions by the Ministry of Petroleum and 
Energy of 21 December 2001. 
− Energy Act of 29 June 1990 no. 50 with regulations of 10 December 2001 no. 1377. 
 3. Policy objective of the subsidy
 
 
The primary objective is energy saving and environmentally friendly energy production 
(production from new renewable energy sources such as wind, biomass, solar, etc., and central heating 
based on new renewable energy sources, heat pumps and waste heat).    4. Form of the subsidy
 
 
 Grant for projects in energy saving and new renewable sources of energy:    
• Investment support for energy saving systems and promotion of new renewable sources of 
energy. 
 5. To whom and how the subsidy is provided
 
 
 The scheme applies to all types of companies, all regions and all sectors.    6. Amount of subsidy
 
 
For 2007 the budget was 788 million NOK and fo r 2008 the budget was 1 427 million NOK.   
 
                                                      
3 The schemes "Grant programme for introduction of new energy technology" (former chapter 5.7) and 
"Information and education measures in the field of energy efficiency" were from 1 January 2002 merged under a new scheme called "The Energy Fund".  The activities of the two schemes will continue under the new 
scheme. G/SCM/N/186/NOR 
Page 24  
 
  The budget is financed by a levy on the distribution tariffs, grants over the State budget a 
yearly yield from a statutory fund established in 2007.    7. Duration of the subsidy
 
 
The scheme came into force 01.01.2002.  It w ill remain in force as long as an agreement 
between the Ministry of Petroleum and Energy an d Enova exists.  The current agreement was signed 
in 2008 and will last till the end of 2011.  The ag reement has set a new goal for 2011 and a work goal 
for 2020.    
8. Trade effects of the subsidy
 
 
Statistical information indicating trade effects are not available.   
 
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 environmental 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, all regions and all sectors, but the main target 
group is farmers and forest owners.    6. Amount of subsidy
 
 
2007:  NOK 21.5 million.   2008:  NOK 37.5 million.   
 7. Duration of the subsidy
 
 
The scheme was established in 2003, and will be in force until 31.12.2013, dependent on 
annual allocations.    8. Trade effects of the subsidy
 
 
Statistical information indicating trade effects are not available.    G/SCM/N/186/NOR 
 Page 25 
 
 
  VI. ASSISTANCE TO EXPORT PROMOTION 
1. Export development programme for SMEs 
1. The Authority responsible for the subsidy  
  The Ministry of Trade and Industry, through Innovation Norway.  
 
2. Legislation under which the subsidy is granted
 
 
• The Annual State budget.   
• Specific guidelines for Entrepreneur programme.   
 3. Policy objective of the subsidy
 
 
Business development and export promotion of SME, with focus on small, highly knowledge- 
and technology based entrepreneurial enterprises with high export potential.    4. Form of the subsidy
 
 
The Programme for Export Development in SMEs  is granted to enhance the competitiveness 
of Norwegian business towards foreign markets.  The Programme comprises reduced prices for the 
services of Innovation Norway.    5.  To whom and how the subsidy is provided
 
 
Support is granted to small, highly knowle dge- and technology based entrepreneurial 
enterprises with high export potential.  With sma ll enterprises it here means up to 100 employees.   
 
Support covers costs partly incurred by the co mpanies for services obtained from Innovation 
Norway in connection with market research, surveys, seminars and training et cetera, as a part of the 
Programme.    6. Amount of subsidy
 
 
Amount of subsidy in 2007:  The Entrepreneur Programme:  NOK 20.12 million.   
Amount of subsidy in 2008:  The Entrepreneur Programme:  NOK 21.50 million.   
 7. Duration of the subsidy
 
  Starting date:  1 February 2002.  Duration has not been specified.   
 
8.  Trade effects of the subsidy
 
 
Statistical data showing trade effects are not available.   
 2. Export Credit Financing Scheme 
1. The authority responsible for the subsidy
 
  The Ministry of Trade and Industry through Eksportfinans ASA.   G/SCM/N/186/NOR 
Page 26  
 
  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 ser vices by offering officially supported export 
credits in accordance with the OECD "Arrange ment on Officially Supported Export Credits" 
(hereinafter called "the OECD Arrangement").    
4. Form of the subsidy
 
 
Interest rate support and currency risk alleviation.   
 5. To whom and how the subsidy is provided
 
 
The receivers of the officially supported export credits are the foreign purchasers of 
Norwegian capital goods.  Export credits are offered at interest rates set according to the OECD 
Arrangement.    6. Amount of subsidy
 
 
 The amount of subsidy for 2007:  NOK 28.8 million.    The amount of subsidy for 2008:  NOK 42.2 million.    7. Duration of the subsidy
 
 
Starting date:  1978.  The duration of the subsidy has not been decided.   
 8. Trade effects of the subsidy
 
 
Statistical data showing trade effects are not available.   
 
3. Export Credit Guarantees 
1. The authority responsible for the subsidy  
  Ministry of Trade and Industry through Guaran tee Institute for Export Credits (GIEK).  
GIEK's operations follow the general framework laid  down by The Storting and the Ministry of Trade 
and Industry.  GIEK has, however, a high degree of independence.    2. Legislation under which the subsidy is granted
 
 
• Regulations of 14 February 1994.   
• The yearly State Budget and revised budget.   
 3. Policy objective of the subsidy
 
 
To promote Norwegian exports of goods and ser vices by covering the exporters commercial 
and political credit risk.      G/SCM/N/186/NOR 
 Page 27 
 
 
  4. Form of the subsidy  
  Guarantees.    5. To whom and how the subsidy is provided
 
 
 Available to Norwegian enterprises a nd banks financing export contracts. 
 
The conditions are in accordance with the rul es of the OECD "Arrangements for officially 
Supported Export Credit" and the "Berne Union Unde rstanding".  GIEK does not pay out subsidies, 
only indemnification after defaults. 
 6. Amount of subsidy
 
  The guarantees are issued on behalf of the Norwegian government.  The financial aim is 
balance in the long term.   
 7. Duration of the subsidy
 
  GIEK was established in 1929.  The duration of the scheme has not been decided.   
 
8. Trade effects of the subsidy
 
  Statistical data showing trade effects are not available.    
4. Exemption from electricity tax for energy in tensive 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 tax rates of the electricity tax and the tax concessions are decided by the Parliament 
during the annual budget process.  3. Policy objective of the subsidy
 
 
 The electricity tax was introduced 1 July 1 951.  The above-mentioned tax concessions have 
been carried through to avoid an undesirable wo rsening 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 energy intensive industri es, paper and pulp industry and greenhouses.   
  Main rules :  An excise duty is levied on electricity delivered to manufacturing industries with 
a tax rate of 0.0045 NOK per kW h in both 2007 and 2008.   G/SCM/N/186/NOR 
Page 28  
 
   Tax concession :  Electricity delivered to energy intensive industries, paper and pulp industry 
and greenhouses are exempted from the tax.    6. The amount of subsidy
 
 
Expenditure for 2007:  
Energy intensive industries:   NOK 150 million  
The paper and pulp industry:   NOK 25 million  Greenhouses:      NOK 2 million 
 
Expenditure for 2008:  
Energy intensive industries:   NOK 150 million  
The paper and pulp industry:   NOK 25 million  Greenhouses:      NOK 2 million 
 
7. Duration of the subsidy
 
  Starting date:   Energy intensive industries:     1 January 1993 
The paper and pulp industry:     1 January 1993 
Greenhouses:     1 January 1993 
 8. Trade effects of the subsidy
 
  Statistical data showing trade effects are not available.   
 
VII. ASSISTANCE TO SPECIFIC INDUSTRY SECTORS 
1. Reduction of CO
2-tax on mineral oils and reduced ra te and exemption from the tax on 
mineral oil (base-tax on heating oil) for the paper and pulp, herring meal and fish meal 
industries and exemption from the CO 2-tax for undertakings covered by the EU 
Emission Trading Scheme 
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.   The tax on mineral oil (base-tax on heating oil) 
was introduced 1 January 2000.  The above-mentioned tax concessions have been carried through to 
avoid an undesirable worsening of the concerned companies' competitive power.  From 1 September 2009 undertakings covered by the EU Emission Trading Scheme are exempted from the 
CO
2-tax.  This is to avoid the use of two economic instruments (tax and quota) to reduce the same 
emissions.     G/SCM/N/186/NOR 
 Page 29 
 
 
  4. Form of the subsidy  
  Tax concession.  5. To whom and how the subsidy is granted
 
 
 Tax concessions for the paper and pulp industry and the herring meal and fish meal industries.   
  (a) CO
2 tax 
 
 Main rules :  An excise duty is levied on mineral oil.  In 2007 the tax rate was NOK 0.54 per 
litre and in 2008 the tax rate was 0.55 NOK per litre.     Tax concession :  The CO
2 tax on mineral oil that is used by the paper and pulp industry and 
the herring meal and fish meal industries are reduced to 50 per cent of the tax rate defined as the main 
rule (i.e. NOK 0.27 per litre in 2007 and 0.28 NOK per litre in 2008).   
  Undertakings covered by the EU Emissi on Trading Scheme are from 1 September 2008 
exempted from the CO
2-tax on mineral oil to avoid double regulation.  
  Vessels used for fishing and hunting are exempted from the CO
2-tax on mineral oil.   
 
 (b) Tax on mineral oil (base-tax on heating oil)   Main rules :  An excise duty is levied on mineral oil.  In 2007 the tax rate was NOK 0.429 per 
litre and in 2008 the tax rate was NOK 0.845 per litre.  
 
 Tax concession :  The paper and pulp industry and the herring meal and fish meal industries 
are exempted from the tax on mineral oil (base-tax on heating oil).  From 1 September 2008 a reduced 
tax rate of NOK 0.120 per litre is levied on minera l oil used by the paper and pulp industry.  
  Vessels used for fishing and hunting are exempted from the tax on mineral oil (base-tax on 
heating oil).   
 6. The amount of subsidy
 
 
Expenditure for 2007:  
 
CO 2 tax: 
The paper and pulp industry:     NOK 31.6 million 
The herring meal and fish meal industries:  NOK 7.5 million 
 
Tax on mineral oil (base-tax on heating oil): 
The paper and pulp industry:    NOK 10.6 million  
The herring meal and fish meal industries:  NOK 6.1 million  Expenditure for 2008:   
 
CO
2 tax: 
The paper and pulp industry:     NOK 19.1 million 
The herring meal and fish meal industries:  NOK 5.2 million EU Emission trading scheme:    NOK 18.8 million 
 G/SCM/N/186/NOR 
Page 30  
 
  Tax on mineral oil (base-tax on heating oil): 
The paper and pulp industry:    NOK 85.0 million  
The herring meal and fish meal industries:  NOK 15.0 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 showing trade effects are not available.    2. The Press Grant Scheme  
1. The authority responsible for the subsidy
 
The Ministry of Culture and Church Affairs.   
 2. Legislation under which the subsidy is granted
 
 
 The subsidy was introduced in 1969 by a parliamentary decision.   
 Present legislation:  Royal Decree of 7 November 1996 and amendments.    3.  Policy objective of the subsidy
 
 
 To promote and maintain a diversified press.  
 4. Form of the subsidy
 
  Grants.    
5.  To whom and how the subsidy is provided
 
  The size of the grant is calculated on the basis of each individual newspaper per annum 
circulation.  Newspapers with one or more issu es per week with an average circulation between 
1000 and 6000 copies can apply for grants.  In add ition, grants are given to newspapers in an 
unfavourable market position and with an averag e circulation of up to 80.000 copies.   
 6.  Amount of subsidy
 
  2007:  The average amount of subsidy recei ved by the newspapers which were granted 
support was NOK 1.8 million.  The total amount  of subsidy granted was NOK 250 million and 
138 newspapers were give n support).  However, there is a hi gh level of variation between the 
newspapers in the level of support.     2008:  The average amount of subsidy recei ved by the newspapers which were granted 
support was NOK 1.8 million.  The total amount  of subsidy granted was NOK 264 million and 
138 newspapers were give n support.  However, there is a hi gh level of variation between the 
newspapers in the level of support.     G/SCM/N/186/NOR 
 Page 31 
 
 
  7.  Duration of the subsidy  
  The duration of the scheme has not been specified.    8.  Trade effects of the subsidy
 
 
 Support is assumed to have no trade effects due to the low level of export/import of newspapers.  
3. National programmes for the promot ion 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  Space Agency (ESA).  The programme seeks to 
increase the spin-off effects of the Norwegian membership in ESA.   
 4. Form of the subsidy
 
 
 Grants. 
 5. To whom and how the subsidy is provided
 
 
The grant is eligible for all enterprises that develop space related goods and services.  The 
Norwegian Space Centre administers the allocation of the grant.   
 
6. Amount of subsidy  
  Estimated expenditure for 2007 was NOK 32 million.   
Estimated expenditure for 2008 was NOK 36.6 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.  
4. International promotion of Norway as a tourist destination 
1. The Authority responsible for the subsidy
 
 
 The Ministry of Trade and Industry, through Innovation Norway.    G/SCM/N/186/NOR 
Page 32  
 
  2. Legislation under which the subsidy is granted
 
 
• The Annual State budget (chapter 2421, 71).   
• Specific guidelines for the scheme.   
 3. Policy objective of the subsidy
 
 
Promote Norway internationally as a tourist destination. 
 4. Form of the subsidy
 
 
Grant.   
 
5.  To whom and how the subsidy is provided  
  The subsidy programme is administered through Innovation Norway.  The grant is available for international profiling of Norway and to promote Norway as a tourist destination.   
 
6. Amount of subsidy
 
  Amount of subsidy in 2007:  NOK 178.6 million.    Amount of subsidy in 2008:  NOK 196.6 million.    
7. Duration of the subsidy
 
  Duration has not been specified.    8.  Trade effects of the subsidy
 
 
Statistical data showing trade effects are not available.   
 
5. Research, development and innovation (in the maritime industry) 
1. The authority responsible for the subsidy  
 
 The Ministry of Trade and Industry, through Innovation Norway.    2. Legislation under which it is granted
 
 
• Annual state budget.   
• Decision No 216/06/COL of the EFTA Surveillance Authority.   
 
3. Policy objective of the subsidy  
  Strengthen the competitiveness and increase th e value added in the maritime industry by 
stimulating research, development a nd innovation in the industry.   
 
4. Form of the subsidy
 
  Grants.    G/SCM/N/186/NOR 
 Page 33 
 
 
  5. To whom and how the subsidy is provided  
 
Under this scheme, both small and medium sized companies and large companies are eligible 
for aid.  The core group of aid recipients will be undertakings in the maritime industry active e.g. in 
the markets for shipbuilding, ship equipment and related services as well as ship owners.  Costs 
eligible for aid are:   
 
• Costs for personnel employed solely in the research activity 
• Costs for durable assets used solely and on a continual basis for the research activity 
• Costs of consultancy and equivalent ser vices used exclusivel y for the research 
activity 
• Additional overheads incurred directly as a result of the research activity 
• Other operating expenses 
 
6. The amount of the subsidy  
  Total payment in 2007:  NOK 3.53 million.  Total payment in 2008:  NOK 9.97 million.    7. The duration of the subsidy
 
 
The duration of the scheme is six years, from 2006 to 2011.   
 8. Trade effects of the subsidy
 
 
 Statistical data showing trade effects are not available. 
 
VIII.  ASSISTANCE TO THE FISHERY SECTOR 
1. Transport Support 
1. The authority responsible for the subsidy  
 
 The Ministry of Fisheries and Coastal Affairs. 
 2.   Legislation under which the subsidy is granted
 
 
The Annual State budget.   
 
3. Policy objective of the subsidy  
 
The purpose is to support transport in order to facilitate implementations of fisheries activities 
in specific regions.   
 
4. Form of the subsidy  
 
Grant. 
 5. To whom and how the subsidy is provided
 
 
The transport support is given to the following sales organisations:   
 G/SCM/N/186/NOR 
Page 34  
 
  − 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 th e distribution of the transport support to the 
fishing industry.  Each sales organisation must su bmit a plan showing how they intend to apply these 
funds so that fishing activities are secured throughout the year.   
 
The subsidy does not include the fish farming industry.   
 
6. Amount of subsidy
 
 
Balanced budget for 2007:  NOK 27.5 million.   
Balanced budget for 2008:  NOK 29 million.   
 7. Duration of the subsidy
 
 
Duration has not been specified. 
 
8. Trade effects of the subsidy  
 
Statistical data showing trade effects are not available. 
 2. Interest Rate Subsidies for Fishin g Vessels for Domestic Deliveries  
1. The authority responsible for the subsidy
 
  Ministry of Fisheries and Coastal Affairs.   
 
2. Legislation under which the subsidy is granted
 
 
Proposition to the Storting no 73 (1984-1985).   
 3. Policy objective of the subsidy
 
 
Modernisation of fishing vessels.  
 4. Form of the subsidy
 
 
Interest rate subsidy and construction loan subsidy. 
 
5.  To whom and how the subsidy is granted  
 
For the ship owners:   
 
An interest rate subsidy was calculated on basis of a hypothetical loan of 5 years, or a real 
loan of 5 to 12 years, repaid by even half-yearly installments.  G/SCM/N/186/NOR 
 Page 35 
 
 
  For the yards:   
 
A construction loan subsidy was calculated as a pe rcentage of the contract price of the ship. 
 
6. Amount of subsidy  
 
Balanced budget in 2007:  NOK 20,000.   Balanced budget in 2008:  Phased out. 
 7. Duration of the subsidy
 
 
 The remaining payments of the interest rate  subsidy were made during 2007.  Both the 
interest rate subsidy and the c onstruction loan subsid y have now been completely phased out.   
 
8. Trade effects of the subsidy  
 
Statistical data showing trade effects are not available.   
 
3. Support to the Modernisation and Capacity  Adjustment of the Fishing Fleet;  
Decommissioning Grant – The Structural Fund 
1. The authority responsible for the subsidy  
 
The Ministry of Fisheries and Coastal Affa irs through Innovation Norway (the National 
Industry and Regional Development Fund).   
 
2. Legislation under which the subsidy is granted  
 
The State budget and the Regulation of 30 June 2003 for the Structural Fee and the Structural 
Fund for the decommissioning of fishing vessels:  A new five-year Structural fund for decommissioning on vessels below 15 meters was implem ented in 2003.  The fund is partly financed 
by the fleet itself through a fee imposed on the first hand value of catch.    
3. Policy objective of the subsidy
 
 
Capacity reduction.   
 4. Form of the subsidy
 
 
Decommissioning grant from the Structural Fund.   
 5.  To whom and how the subsidy is granted
 
  The decommissioning grant is given directly to the ship owner.    
6. Amount of subsidy
 
  Total expenditure to decommissioning in 2007:  NOK 23 million (50 per cent financed by the fleet itself).   
 
 Total expenditure to decommissioning in 200 8:  NOK 14.4 million (50 per cent financed by 
the fleet itself).    G/SCM/N/186/NOR 
Page 36  
 
  7. Duration of the subsidy
 
 
30 June 2003 - 30 June 2008.   
 
8. Trade effects of the subsidy  
 
Statistical data showing trade effects are not available. 
 
4. Retrieval of lost fishing gear (former Research fishery) 
1. The authority responsible for the subsidy  
 
 The Ministry of Fisheries and Coastal Affairs.    2.   Legislation under which the subsidy is granted
 
 
The State Budget.   
 
3. Policy objective of the subsidy  
 
The primary objective is retrieval of lost fishing gear.   
 
4.  Form of the subsidy  
 
Grants.   
 5.  To whom and how the subsidy is provided
 
 
 The fishing fleet can apply for subsidies.  Th e scheme is administered by the Directorate of 
Fisheries.    6. Amount of subsidy
 
 
Balanced budget 2007:  NOK 2 million.   
Budget 2008:  NOK 2.3 million.   
 7. Duration of the subsidy
 
 
Duration has not been specified.   
 8. Trade effects of the subsidy:
 
  Statistical data showing trade effects are not available.    5. Sealing 
1. The authority responsible for the subsidy
 
 
The Ministry of Fisheries and Coastal Affairs.   
 
2. Legislation under which the subsidy is granted  
 
The State budget.    G/SCM/N/186/NOR 
 Page 37 
 
 
  3. Policy objective of the subsidy  
  The objective is to contribute to maximum utilization of harp-seal quotas.    4. Form of the subsidy
 
 
 Grants.    5. To whom and how the subsidy is granted
 
 
The sealing fleet and sealing processors can apply for subsidies.   
 6. Amount of subsidy
 
 
Balanced budget 2007:  NOK 16 million.   
Balanced budget 2008:  NOK 11 million.   
 7. Duration of the subsidy
 
  Duration has not been specified.    
8. Trade effects of the subsidy
 
  Statistical data showing trade effects are not available.    
IX. ASSISTANCE TO FORESTRY SECTOR 
1. Tax Concessions in Forestry:  The Forest Trust Fund and the 5-year Average Tax 
Assessment 
1. The authority responsible for the subsidy
 
  The Ministry of Agriculture and Food through the County Governor and the Ministry of Finance.   
 
2. Legislation under which the subsidy is granted
 
  Both tax assessment schemes have reference to the Property and Income Tax Act, No 14 of 
26 March 1999, administered by the Ministry of Finance.   
 
 The Forest Trust Fund policy is also founded on the Forestry Act of 1965 with amendments, latest by the Act No 98 of 28 November 2003, and the principles are specified in the following regulations:  "Regulation on payment in to the Fo rest Trust Fund" of 12 June 1995;  "Regulation on 
the use of the Forest Trust Fund" of 20 April 1994;  "Regulation on the Forest Trust Fund for 2004" of 7 January 2004.   
 
3. Policy objective of the subsidy
 
  The objective is to promote sustainable utilisation of forest resources.  Due to the particular 
circumstances in the forest sector due to the long production period, forest owner tax adjustments are 
made to promote long-term forest investments.   G/SCM/N/186/NOR 
Page 38  
 
  4. Form of the subsidy
 
  Tax concessions.    5. To whom and how the subsidy is provided
 
 
Forestry activities are in principle being taxed as other economical activities, either as a 
separate income source or in combination with other income activities that the forest owner may have.  
The Norwegian forest owner may however make use of two special tax assessments.  
The Forest Trust Fund is a mandatory forest  investment scheme to encourage long-term 
private investments in forestry b ased on sustainable utilisation of th e forest resources.  The Forestry 
Act requires all forest owners to place into the Fu nd from 4 to 40 per cent of the gross sale value of 
the round wood.  At the time of sale, the buyer automatically deducts a pre-decided percentage from 
the sale receipts.  This amount is deposited in the forest owner trust fund account at his local bank.  
The money may be used for specifi ed forestry investments.   
 
Long-range forest investments may be fully wr itten off and deducted on th e income tax return 
the year the investment is made.  The amount dis bursed from the Fund Account for this investment is 
considered as taxable income the year the disburse ment is made.  However, only 40 per cent of the 
investment is considered as taxable income.  La rger investments may require several years of 
accumulation on the Fund Account prior to making the i nvestment. This entails that the forest owner 
receives an interest free tax credit.    
The forest owner does not receive any interest made on the trust fund.  According to the 
Forestry Act, the interest will be used for the bene fit of Norwegian forestry at municipal – county - or 
national levels.   
 
Average tax assessment.  The yearly income ta x for the forest owner is based on the last 
5 years average income.  The system implies that it is not necessary to obtain equal yearly incomes to 
eliminate the consequences of the progressive taxation.   It entails that the marginal tax percentage 
may be reduced compared to other income groups, wh ere the single last year income is the basis for 
taxation.  The method implies that the for est owner receives a two-year tax credit. 
 6. Amount of subsidy
 
 
In 2007 the amount disbursed on a national basis from the Forest Trust Fund Accounts to 
investment eligible for tax advantages totalle d NOK 229 million.  In 2008 the amount totalled 
NOK 270 million.  In 2007 the non-taxable amount involved totalled NOK 195 million and in 2008 NOK 229 million.  The scheme involved 13000 forest owners in 2007 and 14000  in 2008.  However, 
the subsidy has not been calculated for each owne r due to the individual tax rates involved.   
 7. Duration of the subsidy
 
 
The Forest Trust Fund was initiated in 1932, but established in its present form in 1965. 
 8. Trade effects of the subsidy
 
 
Statistical data showing trade effects are not available.  G/SCM/N/186/NOR 
 Page 39 
 
 
  2. Subsidies for Forest Management Planning 
1. The authority responsible for the subsidy  
  The Ministry of Agriculture and Food through the County Governor.    
2. Legislation under which the subsidy is granted
 
  Regulation on subsidies for forest management planning with environmental registration" of 
4 February 2004.  Funded by the Agricultural De velopment 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 utili sation of the forest resources. 
• Preservation and enhancement of forest func tions 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 owner categor ies and all types of operational forestland. 
Provided a given area coverage of pre-ordered individual forest mana gement plans, the grant covers 
resource registration surveys of larger designated areas and preparation of forest management plans 
on individual properties.  Area registrations provi de forest inventory and resource summaries.  The 
programme also supports capacity building on application of the forest management plan. 
 
The subsidy rates are decided by the local authority and are based on the total resource 
registration and plan preparation cost.  Normally, subsidies are not granted to properties that have 
received payments from this subsidy programme within the last 10-year period. 
 6. Amount of subsidy
 
 
Total subsidy expenditure for 2007:  NOK 20 million. 
Total subsidy expenditure for 2008:  NOK 21 million. 
 
On an average, the subsidies per hectare of prepared forest  management plans amounted to 
about NOK 90.   
7. Duration of the subsidy
 
 
Starting date:  1971.  Duration is not specified.  
 8. Trade effects of the subsidy
 
 
Statistical data showing trade effects are not available.   G/SCM/N/186/NOR 
Page 40  
 
  3. Subsidies for industrial and environmental purposes in forestry 
1. The authority responsible for the subsidy
 
 
The Ministry of Agriculture and Food through th e County Governor and local authorities.    
 
2. Legislation under which the subsidy is granted  
 
"Regulation on Subsidies for industrial and environmental purposes in forestry" of 
4 February 2004, founded on the Forestry Act of 2005.  
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 bi ological diversity, landscape, cultu ral inheritance and recreational 
activities. 
 
4. Form of the subsidy  
  Grants.    5. To whom and how the subsidy is provided
 
 
The grant is eligible throughout the country fo r all forest owner categories and all properties 
exceeding 1.0 hectare of productive forestland.    
The Norwegian Agricultural Authority assigns th e grant through the County Governor to local 
authorities at municipal level.   
 
Local authorities are free to develop specific ru les in accordance with the national framework. 
Granted measures can be silviculture, pre-commerc ial thinning, constructi on and reconstruction of 
forest roads, conservation and enhancement of envi ronmental values in forest and harvesting of round 
wood in difficult terrain.  The subsidy rates are determined by local authorities.   
 
6. Amount of subsidy
 
  Total subsidy expenditure 2007:  NOK 104 million.   
Total subsidy expenditure 2008:  NOK 115 million.   
 
7. Duration of the subsidy
 
 
Starting date:  From 2004 this scheme replaced five former schemes;  (1) Subsidies for 
Silviculture, (2) Subsidies for Construction of Fo rest Roads, (3) Subsidies for Conservation and 
enhancement of Environmental Values in Forestry, (4) National grant for environmental consideration 
when harvesting of round wood in difficult terrain, and (5) Subsidies for manual Thinning.  Duration 
is not specified.    8. Trade effects of the subsidy
 
 
 Statistical data showing trade effects are not available.   
  G/SCM/N/186/NOR 
 Page 41 
 
 
  4. Subsidies for Round Wood Sale and Transport in Forestry 
1. The authority responsible for the subsidy  
  The Ministry of Agriculture and Food through the County Governor.    
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 increase the forestry ac tivities in Northern Norway.  This region is 
not able to provide adequate quantities of wood to enable a regional establishment of major wood 
processing industries.  Therefore, most round wood (especially the pulpwood) must be transported by truck/ferry prior to shipping with ocean frei ghters to the existing processing industries.   
 
4. Form of the subsidy
 
  Grants.    5. To whom and how the subsidy is provided
 
 
 All round wood assortments are eligible for suppor t, but the major part of the support relates 
to the transport of hardwood to the particleboard industry located in Northern Norway.  The grants 
have been given as unit transport support and support to general measures improving round wood 
sale.   
 
The transport is subsidised on the condition that the grants should only cover parts of the costs 
exceeding the "normal" national average.  The assump tion is that the grant shall neither distort the 
competition between the purchasing industries nor ha ve any negative influence on the establishment 
of local industry or other local utilisation of w ood.  If control measures reveal that the conditional 
requirements are not met, the National Forest Service may request the repayment of grants including 
interest.   
 6. Amount of subsidy
 
 
Total subsidy expenditure 2007:  NOK 0.7 million.   
Total subsidy expenditure 2008:  NOK 1.5 million.   
 7. Duration of the subsidy
 
 
Starting date:  1976.  The annual support has been de-escalated according to the policy 
programme.   
 
8. Trade effects of the subsidy  
 
Statistical data showing trade effects are not available.   
 G/SCM/N/186/NOR 
Page 42  
 
  X. THE AGRICULTURAL SECTOR 
1. Introduction 
 The notification of the subsidies in the agri cultural sector gives an overview of general 
developments in the Norwegian Agricultural Polic y and of agricultural subsidy programmes.  The 
notification is in line with previous notificati ons 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.  The last notification (dated 3 September 2009) covers the years 2005-2007.    2. Information on the subsidy programmes 
 The various programmes are listed under the su b headings 10.2.1 to 10.2.7 below.  The 
notification covers schemes in force from 1 Janua ry 2006 and until 31 December 2007.  Numbers 
for 2008 were not available at the time of writing.    
 Norwegian agricultural policy is implemented in  pursuit of objectives concerning i.a. income, 
productivity, regional development, the agricultural landscape and environmental concerns.  The three 
latter objectives and the multifunctional role of agricultu re in general, have be en given higher priority 
during recent years.     Target prices for farm products and the fiscal support to be accorded to agriculture are laid 
down in the annual Agricultural Agreement between the farmers' unions and the Government.  The 
Agricultural Agreement is subject to ratification and appropriation of budget funds by the Norwegian 
Parliament.  Allocations in the Agricultural Ag reement are made under Chapter 1150, Ministry of 
Agriculture of the State budget (cf. table one below for details).    
 Support is provided for grains and oilseeds, fru its and vegetables, milk  and dairy products, 
meat from bovine animals, veal, mutton, pork, poultr y meat, eggs and wool.  For the various sectors 
the below mentioned support schemes apply.  Di rect payments, of which a significant part are 
differentiated by region, size of farms, arable land and number of animals, play a significant role.   
 
2.1 The milk sector 
 
 Milk production is of vital importance in several rural regions as alternative forms of 
agricultural production are scarce.  There is a ma jor policy objective to secure employment and 
economic activity in the countryside, maintenance of agricultural landscape, and to fulfil national food 
security policies including protecting arable land and securing a decentralised production structure.   
 
 Since 1 July 2002, base deficiency payments ar e granted for goat milk only.  In addition, 
regional deficiency payments apply to rural areas.  The deficiency payments are paid for each litre of 
milk delivered to the dairy.  The amount varies according to region, and the highest support is given in the northernmost districts in Norway.  Structural income support is also provided to each farm.  The 
support is paid as a lump sum to producers with more than 5 cows or 27 goats for milk production.  
The objective of the programme is to equalise income between larger and smaller holdings.  
 
2.2 The meat and egg sectors 
 
 Producers of meat from bovine animals, veal and mutton receive a base deficiency payment on 
all output.  From 1.1.2004 the base deficiency payment for bovine and veal were eliminated.  
Producers of beef cattle also receive structural inco me support.  In addition a deficiency payment is  G/SCM/N/186/NOR 
 Page 43 
 
 
  provided to secure producer prices for wool.  Region al deficiency payment is provided to producers of 
meat and eggs in less favoured regions.  The payment is differentiated by region and by type of meat.  
The rates are highest in the northernmost county in Norway.  Transport support is granted to equalise 
farm gate return due to differences in distan ce from slaughterhouses, processing plants and major 
consumer markets.  A small amount of transport supp ort is granted to the egg sector based on the same 
rational as for the meat sector.   
 
2.3  The grain sector 
 
 The Grain Price Support Programme aims at securing the sale of Norwegian grain and to 
reduce the prices on raw materials for flour and for feed purposes.   
 
2.4  Potatoes and horticultural products 
 
 Regional deficiency payments are provided to production of fruit, berries and vegetables.  In 
the horticultural sector some transport support and storage support is also provided.   
 
2.5  Headage and Acreage support 
 
 A major part of the budgetary support is pa id within the Acreage and Agricultural Landscape 
Scheme, the Grazing Support Programe and the Head age Support Programme.  The support is based 
on the size of cultivated area and the number of an imals, and the support is differentiated by region, 
farm size and kind of animal.  Certain environmental criteria have to be fulfilled in order to receive 
support.  In animal husbandry there is a maximum level of support per farm.  The maximum level of 
support varies according to changes in rates.  In plant production the level of  support is dependent on 
the size of cultivated area.  Organic production is subject to separate support programmes.   
 
2.6 Vacation and replacement 
 
 To enable livestock farmers to have suffi cient holidays and time off they are refunded 
expenses for hiring relief personnel under the Vacati on and Replacement Scheme.  Eligible farmers 
must have an approved substitute scheme and expenses must be documented.   
 
2.7 Market regulation 
 
 Market regulation is mainly financed through a marketing levy.  Producers become liable for 
the marketing levy when selling a product.  The aim of  the market regulation is to equalise prices to 
producers and consumers in differe nt regions and to secure supply of agricultural products in all 
regions of the country.   
 
3. Expenditures and market structure 
 Deficiency payments, the structural income  support, the acreage and headage support as well 
as the Vacation and Replacement Scheme are granted di rectly to farmers.  The rest of the programmes 
are market regulation schemes and other indirect schemes.   
  The amounts of support measured by total budge t expenditures for 2006 and 2007 are listed in 
tables 1 to 5 below.  All numbers for are account  figures.  The source is mainly Proposition No 1 
(2007-2008) and (2008-2009) to the Norwegian Parlia ment by the Ministry of Agriculture and Food, 
the Norwegian Agricultural Authority (SLF) and the Norwegian Agricultural Economics Research 
Institute.  Tables 1 to 10 provide updated informat ion on Agricultural Support in Norway as well as 
market information on major agricultural commodities.    G/SCM/N/186/NOR 
Page 44  
 
   In Table 1 Price Support and Other direct payments to producers are totals from Table 2 and 
Table 3.  The rates in Table 5 and 6 multiplied by elig ible volumes of milk and meat are equivalent to 
Price Support in Table 2.    
Table 1 
Chapter 1150, Agricultural Agreement 
Million NOK 
 
 2006 2007 
Agricultural Development Fund 577,7 829,0 
Market Regulation  24,4 24,6 
Price Support  1965,2 1909,8 
Other direct payments to producers 6720,2 6987,4 
Total 9287,5 9750,7 
 
Table 2 
Chapter 1150, Price Support 
Million NOK 
 
 2006 2007 
Milk and Milk Products 426,4 480,0 
Beef, veal, mutton and pork 680,5 584,0 
Cereals  442,9 458,9 
Egg 12,4 13,5 
Potatoes, fruit and vegetables 65,2 76,7 
Wool 154,2 131,0 
Other 183,7 165,8 
Total 1965,2 1909,8 
 
Table 3 
Chapter 1150, other direct payments to producers 
Million NOK 
 
 2006 2007 
Structural income support  1008,3 951,4 
Headage support, animals  2107,4 1871,6 
Grazing support  352,0 
Acreage and cultural landscape scheme  3319,8 3524,7 
Support to organic production 68,0 74,2 
Production support on market crops 32,5 25,6 
Other 184,1 187,7 
Total 6720,2 6987,4 
 
Table 4 
Base deficiency payment, amount per unit 
(NOK per litre/kg) 
 
 2006 2007 
Mutton 3,81 3,81 
  G/SCM/N/186/NOR 
 Page 45 
 
 
  Table 5 
Regionally deficiency payments, amount per unit 
(NOK per litre/kg) 
 
 2006 2007 
Milk4 0,00/1,70 0,00/1,71 
Meat5 0,00/13,00 0,00/13,30 
 
 The schemes in tables 1-5 are the result of  the annual Agricultural Agreement between the 
farmers' unions and the Government.  The agreemen t is subject to ratification by the Norwegian 
Parliament.  While the framework usually does not change from one year to another, there is an 
ongoing process of review and evaluation of the programmes.   
 
 An assessment of the trade effects of the s ubsidies is not available.  Below however, are 
statistics on production, consumpti on, imports and exports of the major agricultural commodities.  
Most 2005 figures are provisional and 2006 figures are forecasts.    
Table 6 
Cow's milk 
 
Received by diariesConsumption 
million kg 
Year 
Million litres Whole, low-fat and 
skimmed milk Cream and sour 
cream 
2005 1512 545,7 34,0 
2006 1500 512,0 37,0 
2007 1541 511,0 36,0 
 Sources:   Budget Committee for Agricu lture, aggregate accounts (Buds jettnemda for Jordbruket – 
Jordbrukets totalregnskap).   
 
Table 7 
Cheese (million kg) 
 
Year Production Exports Imports Consumption 
2005 89,4 18,2 7,4 78,6 
2006 89,8 17,9 7,7 79,6 
2007 87,8 15,2 8,3 80,9 
 Sources:   Production and consumpti on:  Budget Committee for Ag riculture, aggregate accounts 
(Budsjettnemda for Jordbruket – Jordbrukets totalregnskap).  Exports/Import:  External Trade, Statistics 
Norway (Statistisk Sentralbyrå).   
                                                      
4 10 zones, varying rates, lowest and highest cited.   
5 5 zones, varying rates, lowest and highest cited (varies also for kind of meat).   G/SCM/N/186/NOR 
Page 46  
 
  Table 8 
Butter (million kg) 
 
Year Production Exports Imports Consumption 
2005 14,9 1,6 0,4 13,7 
2006 15,4 0,4 0,3 15,3 
2007 15,4 2,4 0,3 13,3 
 Sources :  Production and consumpti on:  Budget Committee for Ag riculture, aggregate accounts 
(Budsjettnemda for Jordbruket – Jordbrukets totalregns kap).  Exports/Imports:  External Trade, Statistics 
Norway (Statistisk Sentralbyrå).   
 
Table 9 
Cereals (million kg)6 
 
Year 
Wheat Production Imports Exports Consumption 
2005 390,4 156,0 0,0 472,1 
2006 395,5 227,4 0,0 477,8 
2007 475,7 278,6 0,0 513,2 
 
Year 
Rye Production Imports Exports Consumption 
2005 34,5 5,7 0,0 35,1 
2006 25,8 8,0 0,0 45,9 
2007 39,9 9,4 0,0 35,0 
 
Year 
Barley Production Imports Exports Consumption 
2005 583,5 0,1 0,0 584,7 
2006 532,1 23,6 0,0 580,4 
2007 481,3 82,0 0,0 594,2 
 
Year 
Oats Production Imports Exports Consumption 
2005 276,2 2,1 0,0 333,3 
2006 245,9 57,8 0,0 303,3 
2007 273,3 54,0 0,0 290,1 
 Sources :  Production:  Budget Committee for Agricu lture, aggregate accounts (Budsjettnemda for 
Jordbruket – Jordbrukets totalregnskap).  Exports/Impor ts:  External Trade, Statistics Norway (Statistisk 
Sentralbyrå).  Consumption:  Norweg ian Agricultural Authorities (SLF).   
                                                      
6 Consumption figures may differ from production + import - export figures, due to changes in stocks 
and storing losses.  Figures of import and export from 1995 and thereafter are based on External Trade Statistics 
by Statistics Norway.    G/SCM/N/186/NOR 
 Page 47 
 
 
  Table 10 
Meat (million kg)7 
 
Year 
Beef and 
Veal Production Imports Exports Consumption 
2005 87,4 3,2 10,3 91,6 
2006 87,6 1,2 4,4 91,6 
2007 86,4 0,2 9,3 96,4 
 
Year 
Lamb Production Imports Exports Consumption 
2005 26,1 0,5 0,7 28,2 
2006 25,3 0,0 0,4 26,6 
2007 23,5 0,0 2,3 26,4 
 
Year 
Pork Production Imports Exports Consumption 
2005 112,8 2,4 5,8 116,2 
2006 116,4 3,7 2,6 115,6 
2007 117,7 0,2 7,6 126,5 
 
Year 
Poultry Production Imports Exports Consumption 
2005 56,9 0,6 1,4 59,3 
2006 62,9 0,4 0,8 63,0 
2007 70,3 0,0 0,0 70,2 
 Sources :  Production and consumpti on:  Budget Committee for Ag riculture, aggregate accounts 
(Budsjettnemda for Jordbruket – Jordbrukets totalreg nskap).  Exporst/imports:  Changes and trends in 
Norwegian diet (Utviklingen i norsk kosthold, Sosial og helsedirektoratet).   
 
Table 11 
Eggs (million kg)8 
 
Year Production Imports Exports Consumption 
2005 50,7 2,4 0,6 48,9 
2006 50,8 1,0 1,9 51,5 
2007 53,2 1,0 2,4 54,6 
 Sources :  Production and consumpti on:  Budget Committee for Ag riculture, aggregate accounts 
(Budsjettnemda for Jordbruket – Jordbrukets totalregnskap).  Exports/Import:  External Trade, Statistics 
Norway (Statistisk Sentralbyrå).   
 
 
 
__________  
                                                      
7 Consumption figures may differ from production + import - export figures due to changes in stocks.   
8 Consumption figures may differ from production + import - export figures due to changes in stocks.