Capture of CO₂ from the incineration plant at Klemetsrud in Oslo is one of the major and prestigious climate initiatives in Norway. Photo: Håkon Mosvold Larsen / NTB
They burn your rubbish and are furious that the tax on incineration could be increased by 85 per cent next year. It could threaten their plans to capture and store CO₂.
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The government proposes to increase the tax on incineration of waste from NOK 476 per tonne of CO₂ emissions to NOK 882, an increase of 85.3 per cent. The manager of Hafslund Oslo Celsio, Knut Inderhaug, who runs the waste incineration plant at Klemetsrud in Oslo, warns of the consequences, including related to plans for CO₂ capture and storage (CCS). . Managing director of Tafjord Kraftvarme, Irene Vik, says they are being drained of capital day by day and that they will never have the opportunity to invest in CO₂ capture with such framework conditions. Show more
At the waste incineration plant at Klemetsrud in Oslo, they are working desperately to cut costs in order to capture and store CO₂ (CCS) from their plant, which will be able to contribute to the largest reduction in climate emissions in the capital.
They will have an even tougher financial framework if the national budget is adopted:
The government proposes that the tax on incineration of waste be increased from NOK 476 per tonne of CO₂ they emit, to NOK 882. Up 85.3 percent.
DISSATISFIED: Åslaug Haga is a leader in Fornybar Norge and former Sp leader. Photo: Tore Kristiansen / VG
– It is incomprehensible that the Government wants to increase a tax that does not cut emissions, but instead destroys the economy in an industry Norway needs, says Åslaug Haga, CEO of Fornybar Norge and former Sp leader.
She languishes:
– The government says it wants to utilize more surplus heat, because it relieves the power grid. But here they plan for a drastic tax increase which leads to the opposite, i.e. further pressure on the power system because there will be less district heating, says Haga.
– Disappointing
Managing director Knut Inderhaug at Hafslund Oslo Celsio reacts strongly to the news. They operate the facility at Klemetsrud in Oslo.
– By increasing the incineration tax, you put both local energy production, which relieves the power grid, and emergency preparedness at risk. It is disappointing that the government plans to send the waste to Sweden for treatment and thus weakens the preparedness of the Norwegian energy and waste treatment system, says Inderhaug to VG.
– You say the consequences are that the waste companies that deliver rubbish to you will send it to Swedish incinerators instead, because the price they get there is lower?
– Yes, they have to pay less to deliver their waste to Sweden. Then the Norwegian waste ends up in Sweden.
Inderhaug says they have not been able to calculate the increased costs, but that it will mean several tens of millions of kroner a year.
CLIMATE WARNING: Inderhaug says that the cost increases will weaken the opportunities for the waste industry to take important climate measures, such as CO₂ capture. Photo: Hafslund Oslo Celsio
Tapped every day
Managing director Irene Vik at Tafjord Kraftvarme in Ålesund is taking little action after the tax shock.
– We are drained of capital day by day and will never have the opportunity to invest in CO₂ capture with such framework conditions.
She says that the company has just drawn up a long-term budget for the years 2024–2028.
– It shows that Tafjord Kraftvarme will run into an annual loss of NOK 15-25 million over the next five years.
She warns that a traditional company can go under.
– A good, safe, environmentally friendly operation that has been built up over 35 years is now slipping through our fingers.
YOUR GARBAGE: Tons of garbage are burned daily in Norway’s largest garbage incineration plant, at Klemetsrud in Oslo. Photo: Terje Bendiksby / NTB
Strong warning
– This could affect gigantic climate projects, which Norway depends on in order to reach the climate targets, says general manager Trygve Mellvang Tomren-Berg of Norsk Fjernvarme to VG.
He refers to both this government’s and the Solberg government’s plans to capture CO₂ emissions from the incineration plant at Klemetsrud in Oslo – and later the rest of the country’s many waste incineration plants, which spew CO₂ from their pipes.
CYNICAL EXPORTS: Tomren-Berg says it is cynical to leave the problem to Sweden. Photo: Norsk Fjernvarme
He adds:
– The cynical thing is that, with this policy, Norway leaves it to Sweden to capture our CO₂, because they are given responsibility for burning Norwegian rubbish, says Tomren-Berg.
– Must also apply to the waste industry
VG has given Climate and Environment Minister Espen Barth Eide (Ap) the opportunity to respond to the criticism.
– Increased taxes on the emission of greenhouse gases is one of the government’s most important moves in the plan for how we will achieve our climate goals. Virtually all parts of Norwegian business today pay around NOK 1,000 per tonne of CO₂ for their emissions. But there have also been several holes in the tax system, which we are now working to close. I completely agree that the waste industry is an important industry, but the polluter pays principle must also apply to the waste industry, writes Barth Eide in an e-mail forwarded by the communications department in the Ministry of Climate and Environment.
NO: Barth Eide refutes that there may be a wave of Norwegian rubbish coming to Sweden. Photo: Gisle Oddstad / VG
Barth Eide points out that the fee has been stepped up gradually after it was introduced in 2022, so that the industry would have time to adapt.
He also does not buy that the tax will weaken competitiveness against foreign countries.
– All Swedish and Danish waste facilities are subject to the EU’s quota system and thus already pay around NOK 1,000 for their emissions. The tax therefore does not cause any competitive disadvantage for the Norwegian plants either.
PS: The increase may be smaller in a first phase: It will come into effect when/if Norway gets approval for the differentiation in the fee between quota-obligated and non-quota-obligated facilities, which they have not yet been approved by ESA due to the state aid regulations. Until then, the increase will be 19 percent.
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Published: 09.10.23 at 21:48
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2023-10-09 19:48:51
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