Passed

The political boxing match about tax on biodiesel is far from over. Whilst the Prime Minister says he’s hung up his gloves, the climate remains heated between Labour (Ap), the rest of the red-green coalition, and a united Opposition.

“It’s already been settled. Parliament has passed an environmentally-friendly differential system of taxation where we ensure that biofuels are compulsorily introduced, whilst reducing tax on road traffic that costs the community billions of kroner,” Jens Stoltenberg tells NRK.

The tax was introduced as part of the Budget last year, despite protests from politicians and threats of biodiesel factory closures.

“Shocked”

Things blew up again last Friday when the government removed both the CO₂ tax on gas and energy tax to be introduced from 01 April, after the Department of Finance believed the EU wouldn’t have agreed to it, according to Dagbladet.

This caused the Socialist Left’s (SV) Hallgeir Langeland – whose party is part of the red-green coalition government – to demand a rematch.

A shocked Langeland told TV2 he’d be taking it up with the parliamentary group on Wednesday, criticising Labour for introducing tax on biodiesel in the first place.

Whilst the Centre Party’s (Sp) – the third part of the red-green coalition – MP, Anne Tingelstad Wøien, told Dagbladet she finds it illogical.

Seconds out

Several environmental groups have also questioned the government’s environmental credibility.

“The government’s current stance will increase, rather than reduce Norwegian climate gas emissions. Their climate policy is going in the wrong direction,” Zero’s deputy leader, Unni Berge, told TV2.

The four Opposition parties – the Liberals (V), Christian Democrats (KrF), Conservatives (H), and Progress Party (FrP) – have now come with calls for the biodiesel matter to be reopened.

Proposing to reintroduce emission tax breaks on diesel that has a 30 percent biofuel mixture, they challenge all three coalition parties to sit down and find a solution that’s good for the environment, and biofuel production companies.

“Removing the tax is indisputably good for the environment, and will contribute to investments in new technology, allowing production to become even more environmentally friendly,” Jan Tore Sanner, the Conservative’s finance policy spokesman tells NTB.