Act No. 99 of 2004 relating to greenhouse gas emission allowance trading and the duty to surrender emission allowances (Greenhouse Gas Emission Trading Act).

The purpose of this Act is to limit emissions of greenhouse gases in a cost-effective manner by means of a system of quota requirements for greenhouse gas emissions and freely transferable emission allowances. This Act applies to emissions within the realm and to emissions from activities on the Norwegian part of the continental shelf, subject to any restrictions deriving from international law. This Act applies to CO2 emissions listed in section 3. An operator shall by 1 May each year transfer a number of allowances corresponding to the volume of emissions for which reporting is mandatory generated by the installation in the previous calendar year to a specified retirement account in the registry. In addition, a discharge permit pursuant to section 11 of the Pollution Control Act is required. In determining the total number of allowances to be allocated, the King shall among other things take into account Norway’s international commitments to reduce greenhouse gas emissions, actual and projected emissions in Norway, the proportion of actual and projected emissions that come within the scope of section 3, the fact that discrimination between sectors and enterprises should be avoided, and the technological and economic potential for reducing emissions that come within the scope of section 3. Sections 7 and 8 concern the method of allocation of allowances. The Norwegian Emissions Trading Registry shall contain information on the allocation, issue, holding, transfer, surrender and cancellation of allowances. Other provisions concern reporting and control and prescribe offences and penalties.