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/en/natur-og-miljo/statistikker/miljovirk/aar
236923
Increased income from taxes on greenhouse gas emissions
statistikk
2015-10-01T10:00:00.000Z
Nature and the environment
en
miljovirk, Environmental economic instruments, environmentally related taxes, environmental taxes, CO2-tax, energy taxEnvironmental accounts, Nature and the environment
false

Environmental economic instruments2014

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Increased income from taxes on greenhouse gas emissions

In 2014, almost NOK 34 billion was paid in environmental taxes in Norway. This is an increase of 2.6 per cent from 2013. Taxes on greenhouse gas emissions increased in 2014, while the expenses on the use-dependent car taxes decreased.

Environmental taxes, main categories. NOK mill.
20132014Change in per cent
2013 - 20142000 - 2014
Environmental taxes, total32 92633 7822.648.6
Taxes on greenhouse gases incl. emissions permits, total13 61514 1944.3109.7
Taxes on NOx and sulphur emissions, total59475627.3546.2
Taxes on noise and local pollution from road use etc., total17 03216 723-1.814.2
Taxes on waste, total242232-4.1-64.8
Other taxes on environmental issues n.e.c., total1 4431 87730.1241.9

Environmental taxes are dominated by taxes on greenhouse gas emissions and the use-dependent car taxes, i.e. mainly the use of fossil energy products. Of the NOK 33.8 billion that was paid in environmental taxes in 2014, 42 per cent was from taxes on greenhouse gas emissions and 50 per cent was from use-dependent car taxes. The government’s income from use-dependent car taxes decreased 1.8 per cent in 2014, but the income from taxes on greenhouse gas emissions increased 4.3 per cent. In 2014, the income from tax on mineral oils increased 31 per cent, mainly due to an increase in the tax rate.

In 2014, the environmental taxes’ share of total taxes was 3.7 per cent; an increase of 0.2 percentage points from 2013. In 1995, it was 5.6 percent.

Increased income from taxes on greenhouse gas emissions

The government’s income from taxes on greenhouse gas emissions increased in 2014. The 4.3 per cent increase in 2014 is still less than the 14.1 per cent increase in 2013. The major change in 2013 was due to a solid increase in the income from the CO2 tax in the petroleum sector, which mainly was due to a doubling of the tax rate (from NOK 0.49 to 0.96 per sm3 natural gas and litre of oil). The income from the CO2 tax generated by the use of mineral oil also increased.

In 2014, the increase in income from taxes on greenhouse gas emissions is still explained by the continuing increase in the incomes from the CO2 tax in the petroleum sector and CO2 tax generated by the use of mineral oil. The income from the other CO2-taxes also increased, including the emission permits. However, the imputed CO2-component of the motor vehicle registration tax decreased in 2014.

Taxes on petrol and diesel move in the opposite direction

The use-dependent car taxes include taxes on petrol and diesel and constitute about half of the environmental taxes. After several years with increased income from these two taxes combined, a decrease in income of 1.8 per cent followed in 2014. The total tax level in 2014 is still higher than before 2013, so the decrease in 2014 is due to a very high level on the income from the use-dependent car taxes in 2013. The high level in 2013 was caused by a solid increase in the income from the diesel tax.

Decrease in income from taxes on waste

The government’s income from taxes on waste decreased by 4.1 per cent in 2014. This downward trend for income from taxes on waste has been seen since 2008. The development is related to the implementation of a landfill ban on biodegradable waste in 2009 as well as the cancellation of the combustion tax in 2010.

Figures for 2013 are updated and presented by industry and household

In relation to this release of figures for 2014, the figures for 2013 are updated. Total environmental taxes for 2013 are adjusted upwards by 0.5 per cent compared with the figures that were presented as preliminary figures for 2013. Figures for 2013 are now to be regarded as final figures and are distributed by industry and household.

Even allocation of environmental taxes between households and industries

Environmental tax expenses are distributed relatively evenly between the industries and the households in the economy, but there is a clear difference between the types of environmental tax that are paid.

Of the total income from the use-dependent car taxes in 2013, the households paid a share of 52 per cent, while the transport and the service sector paid a share of 18 per cent each. Of the total income from taxes on greenhouse gas emissions, the mining, oil and gas extraction industries paid a share of 36 per cent, the households 32 per cent and the service sectors a share of 18 per cent.

A small decrease in households’ environmental tax expenses in 2013

Households’ environmental tax expenses are heavily related to the use of motor vehicles. In 2013, households paid NOK 14.5 billion in environmental taxes, which was a 2.5 per cent decrease from the year before. This was mainly due to a decrease in the payments of taxes on greenhouse gas emissions. Of the households’ total environmental tax expenses, 61 per cent is related to use-dependent car taxes and 30 per cent is related to taxes on greenhouse gas emissions (CO2 tax on petrol and the CO2 component of the motor vehicle registration tax).

About the statistics on environmental economic instrumentsOpen and readClose

The statistics on environmental economic instruments give an overview of taxes introduced to correct for negative effects in the environment caused by human activities, in other words making environmental damage more expensive.

Examples of environmental taxes included are taxes on greenhouse gases incl. emissions permits, taxes on NOx and sulphur emissions, taxes on noise and local pollution from road use etc. and taxes on waste. The taxes are distributed by industries and households in order to show who pays the taxes.

Other figures are used for international reportingOpen and readClose

The definition of environment-related taxes applied in the international reporting differs from that used for environmental taxes. The difference from total environmental taxes is mainly due to the electricity tax, the annual tax on motor vehicles, the re-registration tax and the registration tax, with the exception of the CO2 and NOX component.

For 2013, a total of NOK 73.3 billion in environment-related taxes was reported for Norway to Eurostat. In 2014, the environmental taxes had decreased by 1.1 per cent to a total of NOK 72.5 billion. This was mainly due to a decrease in the income from the motor vehicle registration tax.

Read more about the reporting of environmentally related taxesOpen and readClose

Eurostat, the OECD and the UN define an environmentally related tax as “A tax whose tax base is a physical unit (or a proxy of it) of something that has a proven, specific negative impact on the environment” where a list of consumption, products and activities (tax base) are per definition considered environmentally harmful. This definition is primarily chosen in order to enable international comparisons. It is what is taxed that decides whether the tax is considered an environmentally related tax or not. This means that a tax that does not correct for negative effects on the environment can still be classified as an environmentally related tax. For example, tax on the consumption of electricity and use-independent car taxes as annual taxes and re-registration tax are included in the international reporting as consumption of electricity, and all transport activities by definition are considered harmful to the environment. The international reporting includes several individual taxes and is divided into categories other than environmental taxes.