What is EU ETS?
The European Union Emissions Trading System (EU ETS) is the world's largest emissions trading scheme.
Established by the EU in 2005, it serves as a mechanism to reduce greenhouse gas emissions across member countries.
The system covers various sectors, including energy production, industry, and aviation. The objective of EU ETS is to limit the quantity of allowable emissions by gradually reducing the number of emissions allowances allocated.
In short the EU ETS is an ambition to make Europe the first climate-neutral continent by 2050.
NCL will return in due time how this will affect our services and product, as you already know, our goal is to give the most punctual, stable and cost effective solutions also in the future.
How will the new tax work?
Starting from January 1st, 2024, businesses operating within sectors covered by the EU ETS will be required to pay a tax based on their emissions of greenhouse gases.
Why implement this tax?
The introduction of the EU ETS tax reflects Norway's commitment to combating climate change and adhering to international agreements like the Paris Agreement. By aligning with the European Union's emissions trading system, Norway engages in a broader network for emission reduction, ensuring that national efforts are in harmony with larger climate goals.
The new tax will also incentivize businesses to adopt more energy-efficient and sustainable practices, in line with NCL’s SEA CHANGE strategy; https://www.ncl.no/campaigns/sea-change/
How will the revenues be utilized?
The revenues generated from the EU ETS tax will be directed toward supporting climate-friendly initiatives, such as the development of renewable energy, research into carbon capture and storage technologies, and other endeavors that promote sustainable economic growth and emission reduction.