Norske Skog's paper mills in Norway face an existential threat. The company could lose free emission allowances next year despite cutting CO₂ emissions by over 95% since 2018.
Management and employee representatives at the Skogn and Halden factories describe the situation as dramatically unfair. They await a crucial decision from Norway's Climate and Environment Ministry.
Losing free quotas would cost Norske Skog 120 million kroner annually. Over five years, the total impact reaches 600 million kroner.
"It's extremely unfair that we're being punished for reducing emissions," said employee representative Asbjørn Andre Dypdahl. "Worst case, this could make continued operations impossible."
The factories employ 690 workers plus 50 apprentices. Recent restructuring already requires cutting up to 200 jobs globally by 2027.
CEO Håvard Busklein called the situation serious. "This threatens jobs and our existence in the coming four-year period," he stated.
Norske Skog's achievement is remarkable. Their CO₂ emissions per ton of paper are 80-90% lower than other European paper mills.
Three billion kroner in investments and employee-driven solutions made these cuts possible. A new steam recycling plant positions them as industry leaders.
Trade union representative Trond Bjørken was blunt. "If we don't get compensation, we might not be here."
The paradox is striking. Companies with higher emissions continue receiving allowances while Europe's cleanest paper producer faces penalties.
Norway's Industry Minister Cecilie Myrseth expressed understanding during her Skogn visit. "I have great sympathy for the company's frustration," she said.
However, she noted Norway must follow EU regulations. The free quota system was decided in Brussels despite Norwegian opposition.
The Climate Ministry confirms the complaint receives high priority. Communications director Martine Røiseland said they're thoroughly examining possible solutions within legal constraints.
"We cannot treat Norwegian companies differently than others in Europe," Røiseland stated. "If there's room in the regulations, the government will use it to benefit Norwegian industry."
Workers fear this case could slow Norway's green transition. Why invest in emission reductions if the reward is financial punishment?
Among 118 Norwegian companies receiving free quotas this year, all have higher emissions than Norske Skog's Norwegian operations.