EU has approved an aid scheme for short sea shipping aimed at modal shift in Norway.

The EFTA Surveillance Authority (ESA) approved an aid scheme for short sea shipping aimed at more environmentally friendly transportation in Norway.

The measure is designed to encourage modal shift of freight from road to water. Aid is granted to coastal or short sea services provided that they avoid lorry journeys on Norwegian roads and generate environmental and wider social benefits within Norway.

“ESA supports the development of environmentally friendly ways of transportation within the EEA”, says ESA President Sven Erik Svedman.

ESA recognises in its Maritime Guidelines that launching short sea shipping services may be costly, and EEA States may wish to attenuate this in order to promote these services. ESA can approve aid of this kind given that certain conditions set forth in its Maritime Guidelines are fulfilled.

Norwegian authorities plan to introduce the scheme in early 2017. The aid will take the form of direct grants, and the annual budget of the scheme is NOK 60 million. The five year scheme is estimated to achieve an annual transfer of 100 to 300 million tonne-kilometres from road to waterborne transportation. ​​​

source: http://www.shiptonorway.no/News/3851/Norwegian-state-aid-for-modal-shi