The Norwegian Government has increased the CO2 compensation scheme for the fishing fleet by NOK 140.4 million ($13.1 million), bringing the total to NOK 640.4 million following the Storting (parliament) budget decision.
The scheme is also being expanded to include the reduced CO2 tax for fishing in distant waters.
This expansion is intended to counteract side effects of the CO2 tax, such as increased bunkering abroad, and to help maintain activity in the industry.
The Ministry of Trade, Industry and Fisheries (NFD) is amending regulations to include compensation for the CO2 tax for distant waters paid in 2025.
Payments are scheduled for May or June 2026 when the Guarantee Fund for Fishermen pays out the compensation for 2025.
Regulations are also being amended so that applicants must state the number of litres bunkered for the different tax rates to calculate the correct compensation.
NFD noted this reporting will also provide the authorities with a better overview of fuel consumption in the fishing fleet.
It also noted that the compensation scheme is not linked to fuel purchases but is distributed between fleet groups to provide incentives for energy efficiency.
Within each fleet group, the amount is distributed to the vessels based on the value of the catch achieved.