EFTA Surveillance Authority

04/29/2021 | Press release | Distributed by Public on 04/29/2021 03:41

ESA approves Norwegian aid scheme for alternative fuels infrastructure to reduce greenhouse gas emissions

The EFTA Surveillance Authority (ESA) has today approved a Norwegian aid scheme to support private sector investments in own-use alternative fuels infrastructure.

The measure, which is part of Norway's wider effort to reduce greenhouse gas emissions, will allow companies to develop infrastructure to charge or refuel their low- and zero-emission vehicles, vessels or other machinery.

By providing state aid, the aim is to incentivise investments in such dedicated alternative fuels infrastructure, which is not yet considered commercially attractive due to market and technological immaturity.

Lowering emissions in the transport sector is a crucial part of the country's strategy to reduce greenhouse gas emissions and meet its obligations under the Paris Agreement. Norway has also expressed support for the European Green Deal, which calls for a 90% reduction in transport emissions to achieve climate neutrality by 2050.

To support and step up the switchover to cleaner vehicles - the Norwegian authorities have pointed out that market participants require more flexibility and tailor-made solutions than what the current market offers when investing in green alternatives.

ESA on 16 September 2015 approved a seven-year (2015-2022) measure consisting of five separate aid schemes that set out to support investments in publicly available alternative fuels infrastructure for road vehicles and ships. The new measure aims to complement those schemes.

The aid will be in the form of direct grants, disbursed in tranches, depending on the nature and progress of each project. The aid scheme is not limited to specific sectors, but open to applications from companies in all sectors of the economy.

The aid will be financed from the Energy Fund, which is managed by Enova, a state enterprise owned by the Norwegian State through the Ministry of Climate and Environment.

ESA's decision is available here.