Regulation No. 1160 on CO2 compensation to industries.

The purpose of this Regulation's guidelines is to prevent carbon leakage caused by the increase in electricity prices as a result of the EU's emissions trading system. The compensation given is related to the calculation of subsidy according to ESA guidelines for governmental subsidy on allowance trading system after 2012 (522/12/COL). The compensation applies to period 1 July 2013-31 December 2020. A commercial business is entitled to a compensation if its production is included under an industry code (NACE codes) listed in table of article 4, and with an annual electricity consumption for this production exceeding 10 GWh. The benchmark of electricity consumption is calculated in accordance with energy efficiency standards determined by multiplying CO2 emission factor of 0.67 tons of CO2 times MWh of energy efficiency standard specified in Appendix 1. Any compensation for production not included in energy efficiency standards listed under Apendix 1 - shall be determined by multiplying CO2 emission factor of 0.67 ton of CO2 times MWh with alternative standard of 0.8 (period between 1 January 2005 and 31 December 2011). This latter calculation shall apply to Norway with exception of Svalbard. There will be a yearly reporting to the Norwegian Environment Agency with information related to electricity consumption.
The Regulation consists of 22 Chapters and 2 Appendices: Purpose (1); Duration of the compensation scheme (2); Geographical application of the document (3); Criteria for compensation (4); Application for compensation (5); Decisions on compensation (6); Basis of compensation (7); Calculation of annual compensation (8); Distribution between different products (9); Significant capacity increase (10); Significant production reduction (12); Shortening factor for calculating the compensation (13); Conservative estimate (14); Cumulation of public support (15); Annual payment of compensation (16); Conversion (17); Annual reporting to the Environment Agency (18); Refund (19); Exceptions (20); Future changes in the compensation (21); Entry into force (22).
Appendix 1 - Energy efficiency standards.
Appendix 2 - Products which may switch between fuels and electricity.