Miljøpartiet De Grønne (MDG) is demanding that oil companies repay funds from the 2020 petroleum tax package after the offshore industry announced it expects to cut CO₂ emissions by 42 percent by 2030, falling short of the 50 percent reduction requested by the Storting, according to statements from party representative Frøya Skjold Sjursæther.
The dispute centers on targets established when the Storting granted the petroleum industry favorable tax terms in 2020. While the sector now estimates it will lower emissions to 42 percent in 2030—down from 10.9 million tons last year—the figures break with the Storting’s initial 50 percent reduction target from 2005 levels, which would have required emissions to drop to 6.8 million tons. Sjursæther criticized the outcome, calling the 2020 arrangement a scandalous package valued at 68 billion NOK and arguing that the industry is abandoning its climate goals after receiving massive tax relief.
Disagreements persist regarding the exact financial value of the 2020 crisis package. A 2024 analysis by Vista Analyse, conducted on behalf of Kirkens Nødhjelp, estimated that the state loses 68 billion NOK in tax revenue under certain conditions. Conversely, the Finansdepartementet estimated last year that the state loses roughly two billion kroner in tax revenues over time on an uncertain basis, explaining that taxes are dampened in the short term while rising later.
Did You Know?
In 2005, Norwegian offshore installations and land facilities emitted 13,6 million tons of CO₂-equivalents, serving as the baseline for current industry comparisons.
Industry Defense and Political Repercussions
Offshore Norge director for climate and environment Benedicte Solaas stated that the climate cuts were framed as an explicit request rather than a direct mandate. According to Solaas, the Storting’s vote included no formulations indicating that repayment could become relevant, making any potential payback a political matter that must be discussed in the Storting. Solaas noted that the industry has worked thoroughly to reduce emissions but faces challenges finding profitability in expensive alternative measures such as gas power with carbon capture, alongside slower global market developments for offshore wind and CO₂ storage.
Fewer emissions cuts from the oil and gas sector carry broader consequences for national climate accounting. Norway aims to reduce its overall emissions by 55 percent by 2030 compared to 1990 levels, requiring total emissions to fall to 23 million tons of CO₂-equivalents. Because the petroleum industry is on track to emit roughly one million tons more in 2030 than requested, the shortfall could force the government to purchase more climate quotas—currently priced at around 900 million kroner per million tons—or compel other domestic sectors to execute deeper cuts.
Expert Insight:
The clash between political climate expectations and offshore economic realities exposes a core tension in Norway’s green transition: while lawmakers lean on national targets, industry stakeholders point to market limitations, quota costs, and profitability thresholds as barriers to accelerated electrification and capture projects.
Divergent Views in Parliament
Storting representative Kristoffer Sivertsen (Frp) defended the 2020 crisis package, asserting that it has functioned as planned by securing activity at shipyards and ensuring stable energy deliveries to Europe. Sivertsen dismissed MDG’s demands as an attempt to gain attention, arguing that the tax package has paid for itself multiple times through taxes and transfers to the Oljefondet, and that the original climate requirements were totally unrealistic.
Meanwhile, Sjursæther maintained that shifting responsibility away from the oil sector forces fastlandsindustrien and other domestic industries to shoulder heavier transition burdens. With Equinor recently dropping projects such as hydrogen export to Europe and opting out of certain power-from-shore initiatives, the debate over how to balance offshore production, economic returns, and national climate commitments remains deadlocked ahead of upcoming parliamentary discussions.
Frequently Asked Questions
What was the emission reduction target set by the Storting in 2020?
The Storting requested that the oil and gas industry cut its CO₂ emissions by 50 percent by 2030 compared to 2005 levels.
What reduction does the oil industry currently project for 2030?
The industry now estimates it will achieve a 42 percent reduction in emissions by 2030, lowering emissions to 42 percent.
How much does a million tons of climate quotas cost?
Quotas for one million tons currently cost approximately 900 million kroner.
How do you view the balance between maintaining petroleum activity and meeting national climate obligations?
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