Background information

In 2022, Innovation Norway Case number NO-2004-1/2547 has emphasized the need to turn more funds towards green projects. A new pilot scheme called Green Investment Grants was established. Innovation Norway expects that the project will help the country meet the environmental targets in the EU taxonomy, which is a stricter assessment of green projects than in other investment grants. The pilot project strengthens Innovation Norway's green portfolio.

Content of measure

The Green Investment Grants was established as a result of the war in Ukraine, with an eye to the EU plan "REpowerEU" and the "Green Deal" strategy. Green Investment Grants are aimed at industrial companies that plan to undertake major investment projects within the regional policy area. The projects must have a positive environmental impact and aim to contribute to the development of integrated and circular value chains.

The grants target industrial companies situated in municipalities mentioned in the Regulations on the Scope of Regional-Oriented Investment Support (FOR-2021-12-14-3661). They also target companies that are making investments in their own production line with the intention of producing and selling solutions that address environmental challenges. This can include the production of technology for renewable energy production, energy systems, and energy efficiency, as well as purification technology for water and air. It also includes material recycling where it is more environmentally friendly than the current waste management practices.

Requirements for receiving Green Investment Grants for a project include:

• its contribution to the green transition, value creation, and employment
• its significant and quantifiable environmental impact

The applicant must explain the assumptions and compare them to the best available alternative. Projects prioritised qualify according to the principles of the EU taxonomy for sustainable activities. Projects that support the development of integrated and circular value chains are prioritised.

Green Investment Grants can also be used for investments in machinery, equipment, and intangible assets that enable established companies to reduce greenhouse gas emissions in their own production. This can involve the transition to circular production processes and energy efficiency measures where the investment will result in lasting change to the company's production and reduction of the company's environmental impact.

Approved costs are:

• Investments in a) buildings and real estate, b) machinery and equipment, c) intellectual property rights, etc.
• The company's costs for implementing the approved investments, including costs for testing, training, adaptations, and so on, can be approved if they are capitalized along with the investment.

The budget for 2023 is NOK 100 million (€8.5 million), and the scheme is administered by Innovation Norway.

Use of measure

The budget for 2023 is NOK 100 million (€8.5 million). There is no information yet on the impact of the measure.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Local / regional government Public support service providers	National funds National Recovery and Resilience Facility

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement as case not in social partner domain	No involvement as case not in social partner domain
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

No involvement as case is not in social partner domain.

Views and reactions

No known views.

Sources

• 17 March 2022: Green investment subsidy in the districts (www.innovasjonnorge.no)