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A CO2-fund for the transport industry: The case of Norway

Authors: Inger Beate Hovi, Daniel Ruben Pinchasik
Report nr: 1479/2016
ISBN (digital version): 978-82-480-1706-6
Language: Norwegian
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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 tax 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. The analysis in the present report 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 trucking. A CO2 fund may contribute to increasing demand for these technologies and to achieve a critical mass.


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