Norway’s largest opposition party, Labour, has reportedly expressed support for proposed tax cuts to promote investments in the country’s beleaguered oil and sector but is calling for such a stimulus to incentivise climate-related projects to cut carbon dioxide emissions.

The Conservative-led government is currently considering the controversial proposal that would enable oil companies to immediately deduct their capital expenditure against tax within the year in which investments are made, rather than over six years under the present regime.

Coronavirus effects

This is intended to boost investment in new field projects that have seen their profitability severely undermined by a plunge in oil prices on the back of the coronavirus crisis.