At the dock in Bygstad, warehouse manager Kjell Øvrebø gazes across Dalsfjorden and explains the precise rhythm of coastal life. You can set your watch by the freight boats, he says. As a vessel from Eidshaug Rederi docks and begins unloading supplies, Øvrebø emphasizes their complete dependence on these deliveries. This scene repeats daily along Norway's intricate coastline, where coastal shipping forms the circulatory system connecting remote communities.
Norway's current climate policy creates a unique double burden for domestic shipping companies. While the government plans to compensate the fishing fleet for increased CO₂ fees in next year's budget, coastal shipping faces both Norway's national CO₂ tax and obligations under the EU's emissions trading system. This dual approach makes Norway stand alone in Europe, where neighboring countries typically employ either a carbon tax for non-quota activities or participate in the quota system, but not both simultaneously.
Karsten Sprenger of Kystrederiene describes Norwegian shipping as buckling under climate fee weight. The combination of Norway's specific CO₂ tax and climate quotas introduced last year creates million-krone burdens for domestic vessels. Meanwhile, foreign ships sailing the same routes avoid these costs entirely. With approximately 65 percent of ships in Norwegian waters being foreign-flagged, this creates clear competitive disadvantages.
Industry representatives argue the current system undermines Norway's green transition. Snorre Eidshaug, daily manager of Eidshaug Rederi, reveals his company will spend 11 million kroner on CO₂ fees during 2025, with projections reaching 13 million the following year. For a company with annual revenue around 100 million kroner, these fees drain capital that could otherwise fund investments in newer, more environmentally friendly vessels.
The situation represents a policy contradiction. While the government's transition barometer shows shipping emissions have increased in recent years, the current fee structure may actually hinder environmental progress. Companies cannot invest in more efficient hulls and engine technology when their finances are consumed by climate fees. Even when funds might become available through potential policy changes, mature zero-emission technology for larger vessels remains underdeveloped.
Recent history shows the complexity of climate policy implementation. The summer coalition government dropped requirements for the fishing industry to pay CO₂ fees when refueling in Norwegian ports after recognizing the measure backfired. Emissions increased as Norwegian vessels traveled longer distances to purchase cheaper diesel abroad, leading to a pause in CO₂ fees for the fishing fleet until the new year.
Four political parties in Parliament have since advocated for completely removing CO₂ fees from the fishing fleet. Now coastal communities urge politicians to extend similar consideration to freight vessels. Research from the Green Shipping Program, the Norwegian Public Roads Administration, and Kystrederiene reveals shipping emissions are much lower than road transport emissions—only half of previous estimates.
The Norwegian coastal shipping industry represents both tradition and necessity. These vessels carry deep historical roots and form part of the national infrastructure serving remote districts. Many Norwegians value maintaining this infrastructure under national control. As Jan Tore Eidshaug of Eidshaug Rederi states, politicians must understand that coastal shipping constitutes essential Norwegian infrastructure serving district communities.
Looking forward, industry leaders propose solutions that could reduce emissions by five to six percent while removing CO₂ fees. This approach would provide competitive conditions relative to other countries, ensure catches reach Norwegian processing facilities, and maintain bunkering infrastructure along the coast. The fundamental challenge remains balancing environmental goals with practical economic realities for an industry vital to Norway's coastal existence.