Norway proposes CO2 tax hike to increase funds for climate mitigation


From Yale Environment 360

Norway has announced plans to nearly double its carbon tax on the nation’s offshore petroleum sector to create a £1 billion fund  to help combat the effects of climate change, including in developing nations.

In a draft budget released this week, government officials proposed a climate program that would increase the tax on oil companies from about £24 per ton of carbon dioxide to £45 (Nkr410) per ton.

The plan would allocate about £1 billion (Nkr10 billion or about $.129 billion U.S. dollars are current exchange rates) to promote green energy initiatives, reduce carbon emissions, and improve food security in developing countries.

In addition, Norway would pledge about £44 million to help developing nations preserve tropical forests, which play a critical role in storing carbon. Norway has previously helped fund efforts to reduce deforestation in Brazil, Indonesia, and Ethiopia. These new plans come as the oil-rich nation looks to expand its oil exploration into the Barents Sea between Norway and Russia.

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