Norway CO2 Tax Exemption End on Fishing Vessels to Impact Bunker Volumes

Norway‘s abrupt end to the CO2 tax exemption for fishing vessels has sent ripples through the country’s domestic marine fuel market, with suppliers already reporting significant lost volumes just days after the change took effect.

As of July 1, Norwegian fishing vessels are no longer able to bunker fuel tax-free in the country if they are sailing to foreign ports.

The move ends a longstanding exemption that had made Norwegian ports a preferred refuelling stop for much of the international fishing fleet.

“The fishery CO2 will reward owners taking fuel in Denmark, UK and Faroe island.” 

“You can also bunker a tanker in Norway – sail to Svalbard and sell offshore Barents Sea,” the source added. 

Norwegian marine fuel supplier Bunker Oil AS also said the market response was immediate. The company reported cancellations of 1.5 million litres of fuel orders on July 2 alone, just one day after the rule came into force.

“The impact is already dramatic,” the firm said, adding that the change was pushed through with almost no warning.

According to Bunker Oil, the Norwegian Ministry of Finance made the decision on June 23, with the rule coming into effect just a week later.

“We find it surprising that the Ministry of Finance has chosen to implement this change at short notice,” it said. 

In a separate move, Norway is also consulting on a proposal to raise its advanced biofuel blending requirement for domestic shipping from 6% to 7% in 2026, and 8% in 2027.

Most volumes are still tied to ferries and other government-supported contracts, the source added.