Varsler fossilforbud

From 2030, a ban on using fossil oil and gas to generate heat for industrial processes will be in place, known as indirect combustion. The ban has been announced for some time and applies to businesses that are not required to pay quotas through the EU quota system, such as transport, agriculture, heating in buildings, and waste incineration.

This is done to reduce emissions and contribute to achieving Norway's climate goals, says climate and environment minister Sigrun Aasland (Ap) to E24. Norway aims to reduce emissions by 55% by 2030 and 70-75% by 2035. The ban will affect around 300 companies in the food industry, fishing industry, paper and pulp, and livestock sectors, according to the government.

Waste incineration is not covered by the ban. The measure is expected to cut Norwegian emissions by about 700,000 tons over the years leading up to 2030, the state secretary notes. The government expects this to amount to around 300,000 tons of emissions reduction per year once the ban is fully in effect from 2030, according to earlier consultation notes.

Alternatives to using fossil energy to generate heat for industrial processes include electric heat pumps, heat pumps, and solid biofuel burning, according to the government. State Enova provides support for such alternatives. The climate and environment department has previously estimated that the around 300 companies will need to invest 900 million kroner in alternatives, in addition to increased operational costs.

Companies can seek exemptions from the ban if there is not enough capacity in the grid or if alternatives result in very high costs. A study by Oslo Economics and Sintef Energi shows that in many cases, these investments can be worthwhile in the long run. Companies can also seek support from Enova for switching, says Sigrun Aasland.

This is a crucial part of the transition in industry. Companies have been given ample time to adapt to this change. Analysis suggests that for many, it will be worthwhile in the long term, but we must also provide assistance. I think this is a good balance. When the proposal was being consulted, industry association Norwegian Industry expressed concern.

"The consequences will likely vary greatly between different companies. For some, switching to electricity or similar could be straightforward," the organization wrote in a statement. "For other companies, a ban could be as dramatic as forcing them to close down." The state expects that not all companies will struggle. The ban has been announced long enough in advance, and good alternatives exist, such as heat pumps and electric heat pumps.

Support can be obtained, and exemptions can be sought if a company does not have access to the grid. Minister Aasland believes this is a predictable and manageable measure. It contributes to a significant reduction in emissions. Norway has committed to reducing emissions year by year in the future. The ban also applies to companies with quota obligations.

This ban will apply to non-quota companies from 2033, following a decision in the Storting in connection with the revised budget for 2025. The government is also considering a similar ban on indirect combustion of oil and gas for quota companies. This ban will affect a portion of the government's income from CO₂ taxes. The department has previously estimated that the state will lose around 328 million kroner per year starting in 2030 given the current level of the tax.

With an increasing CO₂ tax, the state is expected to lose an additional 673 million kroner per year.