Trade group welcomes Norway’s proposal to reduce biodiesel tax

The Norwegian trade association Drivkraft Norge, which represents energy and fuel companies, announced Oct. 7 that it is satisfied the government of Norway is now proposing to reduce the road-use fee on biodiesel for 2025.

Changes in the fee level in the budget for 2024 led to the road-use fee being higher for biodiesel than for regular diesel.

“Biofuel contributes to reduced emissions and should not be taxed more heavily than fossil fuels,” the association stated.

Drivkraft Norge called for greater clarity, however, around the effect and usefulness of biofuel as a climate measure.

“We are glad that the government has listened to our input on biodiesel and road-use tax,” said Drivkraft Norge CEO Kristin Bremer Nebben. “But at the same time, we are concerned about how biofuel is mentioned in the ‘Green Book.’ The government emphasizes biofuel as an important climate measure and plans to increase the turnover requirement to 33 percent for road traffic by 2030. Nevertheless, arguments are presented that contribute to undermining the credibility of biofuels. This ambiguity can create uncertainty in the market and potentially slow down the transition to low-emission solutions in the transport sector.”

Bremer Nebben reiterated that there needs to be a clear and predictable policy for biofuels.

“Biofuels are an absolutely necessary means of achieving the government’s climate goals in 2030,” Bremer Nebben said. “I encourage the government to clarify its position, and to strengthen the framework conditions and incentives for using more biofuel as a substitute for fossil fuel.”