Regulation No. 3395 on CO₂ Compensation for Industry for the Period 2021–2030.

This Regulation establishes a government support scheme aimed at counteracting carbon leakage from Europe due to rising electricity prices caused by the EU Emissions Trading System (ETS). Applicable from 1 January 2025, the Regulation outlines eligibility criteria for industrial producers in Norway (excluding Svalbard) based on specific NACE codes and energy consumption thresholds. Eligible companies must either adopt energy efficiency measures, source renewable electricity, or invest part of their compensation into emission-reduction projects. Compensation is calculated annually based on emission factors, energy standards, and forward prices for EU Allowances (EUAs), with a support intensity of 0.75 and a CO₂ emissions factor of 0.53 tons/MWh.
The Regulation also mandates that at least 40% of compensation received between 2024 and 2030 be invested in climate or energy efficiency measures, such as reducing emissions, lowering electricity consumption, or recycling energy. Recipients must submit an action plan, annual progress reports, and a final report to the Norwegian Environment Agency, with provisions for monitoring, clawback of misused funds, and possible exemption in special circumstances. The Regulation provides detailed standards and methods for calculating compensation and includes requirements for mandatory energy audits, to ensure alignment with broader climate and industrial policy goals.