While the US launched its Inflation Reduction Act in August 2022, the EU is preparing a similar support scheme for European industry. The Norwegian government has expressed strong interest in securing the interest of Norwegian enterprises, while government officials are coming to Norway to attract investments.
The support schemes may be characterised as disruptive and protectionist, but will hopefully attract massive investments in renewable energy and climate change mitigation in the Western world.
As it is currently vague and unclear when and how these schemes will be adopted and implemented and what their exact content will be, it is challenging to predict the detailed consequences of these proposals for Norwegian businesses. If a European Sovereignty Fund is set up the Norwegian Government might take steps to ensure that the scheme also encompasses Norwegian undertakings, which could give access to increased funding for companies in key green sectors. In any event, these proposed measures are likely to give Norway and EEA law more leeway for green state aid in the future.
A further consequence of these schemes might be that it pressures the US and EU into negotiations, to avoid a further tit-for-tat escalation of protectionism. In that case it will be central for Norway to ensure that any concessions and trade rights for the EU must also include Norway. You will find an overview of the two support schemes on the links below:
Overview of the New Green Deal Industrial Plan
Overview of the Inflation Reduction Act