Norway's MDG demands repayment of oil industry tax relief

The Green Party (MDG) is demanding the repayment of tax relief provided to the Norwegian oil industry during the 2020 crisis. The demand follows reports that the industry now expects to achieve a 42 percent reduction in CO2 emissions by 2030, falling short of the 50 percent target requested by the Stortinget.

MDG representative Frøya Skjold Sjursæther described the 2020 tax package as “scandalous,” noting that the industry received significant benefits under the assumption of higher emission cuts. While Vista Analyse estimated the state lost 68 billion NOK in tax revenue, the Ministry of Finance previously estimated the long-term loss at approximately 2 billion NOK.

Representatives from Offshore Norge have responded by stating that the 50 percent reduction was an “request, not a direct requirement,” and that the original resolution contained no provisions for repayment. They maintain that the industry has worked diligently to reduce emissions.