Norwegian silicone producer Elkem ASA says it has received 1.3 million additional free emission allowances under the EU Emissions Trading System (EU ETS) for the period 2021–2025 from the Norwegian Environment Agency (Miljødirektoratet).
The award follows the Norwegian Ministry of Climate and Environment’s conclusion in July 2025 that Norwegian silicon, ferrosilicon and manganese producers were unequally treated compared to EU producers in the implementation of EU ETS rules for the 2021–2025 period. For that period, certain Norwegian industrial installations, including Elkem’s silicon plants, received free emission allowances corresponding to approximately 72% of historical emissions, while comparable installations in EU member states received approximately 94 per cent.
For the 2026-2030 period, Elkem’s plants in Bjølvefossen, Bremanger, Rana, Salten and Thamshavn have been informed by the Norwegian Environment Agency that they will receive allowances in line with the allocation received by comparable industrial producers in the EU.
“We welcome the decision by the Norwegian authorities to apply the same interpretation of the EU ETS rules as other EU countries,” said Luiz Simão, SVP of Elkem Silicon.
“Fair and equitable treatment in the allocation of free allowances is crucial for maintaining a level playing field for European industry. For many years, Elkem has worked to ensure that Norwegian producers are granted the same framework conditions as their competitors elsewhere in Europe. Today’s decision contributes to upholding the competitiveness of Norwegian industry and to preserving critical industrial value chains in Europe.”
Under the EU ETS, industrial installations considered to be at significant risk of carbon leakage receive free allowances to support their competitiveness. Carbon leakage refers to the risk that production may relocate outside Europe because of climate-related costs, resulting in higher global emissions rather than lower ones.
“The EU ETS is not only an important policy tool for Europe’s ability to deliver on climate neutrality. It is also important for strengthening Europe’s industrial competitiveness,” Simão added. “We support the European Commission’s ambition to preserve European strategic industries and industrial capabilities that are essential for the EU’s green and digital transition. Competitive and predictable framework conditions are the foundational pillars required to sustain and grow a resilient, “Made in Europe” industrial base.”