A CO2-fund for the Norwegian Transport Industry?

Environment-conceptHeavy transport makes up a large part of the land-based GHG-emissions from the transport sector in Norway. Every year, 70 000 trucks emit around 2,5 million tons of CO2, and pay in over 1,2 billion NOK in CO2-duties on fuel.

A means to accelerate the phasing in of trucks with renewable propulsion technologies is to establish a CO2 fund for the private sector with the same principles as today’s NOx Fund. The revenues of such a fund can be based on a percentage of the current CO2 duty on fuel. Using these revenues, the fund can provide subsidies towards the additional investment costs for vehicles with renewable propulsion technologies and towards partial coverage of investments in infrastructure, such as filling stations. This analysis shows that it is most cost effective to support investments in vehicles using biodiesel, but that the availability of sustainable fuel can pose a challenge. A fund should therefore also focus on providing subsidies towards vehicles using more expensive technologies, such as biogas, electricity and hydrogen. Technology for these latter two options is still immature for use on (heavier) trucks. A CO2 fund may contribute to increasing demand for these technologies and to achieve a critical mass.

Report:

A CO2-fund for the transport industry: The case of Norway.
TØI Report 1479/2016.
Authors: Inger Beate Hovi and Daniel Ruben Pinchasik

Inger Beate HoviContact:
Inger Beate Hovi
ibh@toi.no
TØI, Norway
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