**4.3 Norway**

Norway established a CO2 emission tax in 1991, mainly applying to offshore oil and gas extraction. Other sectors in the country with a large carbon footprint were exempted, such as fishing, metallurgy, cement making, aviation and others. The power generation sector was not affected because 98% of the country's electricity comes from hydroelectric plants. Because of this policy of taxation centered on exploitation and consumption of fossil fuels, the pump prices of gasoline and diesel in Norway are among the highest in Europe (equivalent in July 2011 to US\$ 2.30). But because of the many exceptions, Norway's carbon tax has not managed to reduce emissions as much as envisioned.

Regarding specific regulations on CCS, the Ministries of Petroleum and Energy, Labor, and the Environment as of May 2011 were still working on new regulations on the transport and storage of CO2 in subsea reservoirs under the country's continental shelf. The work was being delayed due to the conflicts of interest within and among the ministries, and no draft regulations had been put out for public consultation as of that date.
