Recycling fund for OSVs

A proposal to establish a Recycling fund for Offshore vessels has been raised by Maritime Forum and backed by Progressive Party:

Google Translated FYC

They want the Norwegian government to pay for offshore vessels in lay-up to be scrapped in Norway?

Yes that is right. It may sound crazy but it is more economical than paying unemployment benefits to idle seafarers and shipyard workers for years to come.
Getting these ships back to work, or sold for other use, is a pipe dream at the moment. Selling them to competitors with a loss is not a good alternative either.

Besides, the Government has guaranteed for loans that will likely not be paid back, thus invoking the guarantees, leading to great losses for the state.

It is left to be seen if this proposal gets a majority in the Storting though.

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It might be a good idea, but could it be against European Economic Area state aid rules?

Shipyards in Denmark might complain that it is unfair that the Norwegian government is funding competitors in Norway.

There are some exemptions to state aid rules for environmental protection, as this is recycling ships maybe it is exempt.

Yes that is the “work around” AFAIK.