Current regulation
The Norwegian aquaculture sector is subject to a fragmented regulatory framework with administrative authority distributed across multiple government bodies.
Norwegian aquaculture operations are subject to a comprehensive and cross-sectoral regulatory framework structured around two pillars: licensing and supervision.
The licensing function is primarily governed by the Aquaculture Act (Nw. Akvakulturloven) and its accompanying regulations, including the Salmon Licensing Regulation (Nw. Laksetildelingsforskriften) and the Production Area Regulation (Nw. Produksjonsområdeforskriften).
No entity may conduct aquaculture operations without an aquaculture license. For salmon, trout and rainbow trout, licenses are currently granted through the Traffic Light System, while applications for site permits are processed by the county authority through a coordinated procedure in which the municipality, the Norwegian Food Safety Authority (Nw. Mattilsynet), the Norwegian Coastal Administration (Nw. Kystverket), the County Governor (Nw. Statsforvalteren) and the Directorate of Fisheries (Nw. Fiskeridirektoratet) assess the application under their respective sectoral legislation – including the Food Act, the Animal Welfare Act, the Pollution Control Act and the Harbour and Fairways Act.
Due to the environmental status determined through the Traffic Light System, the allocation of new aquaculture licenses is very limited. This has resulted in an active second-hand market for aquaculture licenses through mergers and acquisitions.
The supervisory component is divided along sectoral lines:
The Directorate of Fisheries supervises environmentally sound operations, escape prevention and compliance with biomass limits; the Norwegian Food Safety Authority supervises fish health, animal welfare and food safety under the Food Act and the Animal Welfare Act, and the County Governor supervises pollution control and other environmental matters, including seabed impact and recipient capacity.
These two complementary regulatory functions – licensing as the gateway to the industry and ongoing sector-based supervision governing operational activities – require operators to navigate a complex interplay between multiple authorities and regulatory regimes throughout the lifecycle of their operations.
The industry has long sought changes to the regulatory framework and simplification of the administrative structure to facilitate sustainable growth. Norwegian authorities have responded through the introduction of new regulatory regimes, notably the Traffic Light System in 2017 and, more recently, the substantive reforms proposed in the White Paper on Aquaculture (Nw.: Havbruksmeldingen) presented in 2025.
Production is regulated by the "Traffic Light System"
- Since 2017, production capacity adjustments have been governed by The Traffic Light System with the stated objective of facilitating sustainable industry growth.
- The Norwegian coast is divided into thirteen production areas. The environmental status for each area is determined every other year, and the impact of sea lice on wild salmon in the area determines whether companies in that specific area can be offered growth (up to 6 %), maintain production at the same level, or are required to reduce production (up to 6 %).
- Approximately 37.000 tonnes of production capacity in Western Norway has been reduced since the implementation of the system, representing a 20 percent reduction from the originally allocated production capacity.
- Systematic deficiencies have been identified in the underlying knowledge base, modeling framework, and regulatory assessments.
- There is now political recognition that the system has failed to achieve its intended objectives and requires replacement. Going forward, the Government's work on the Aquaculture White Paper and possible regulatory changes will determine whether this system will be maintained.
Traffic light colors for 2026–2027
Green (growth) for production areas 1, 12 and 13, yellow (no change) for areas 2 and 4–11, and red (reduction) for area 3.
The Aquaculture White Paper
A white paper is a document from the government to the parliament.
It presents future policy, reports on public activities, or discusses major issues without containing concrete legislative proposals.
The Parliament's assessment of the white paper
Innst. 525 (2024–2025)
"The current regulatory regime through the traffic‑light system does not contribute adequately to solving these challenges […]" (page 2)
"The majority assumes that the current system of maximum permitted biomass (MTB) and the traffic‑light system will be maintained until new regulations are developed, have been subject to public consultation and are adopted." (page 10)
The Aquaculture White Paper (Nw.: Havbruksmeldingen) was presented in April 2025 and proposed significant changes to the current regulatory framework governing aquaculture activities.
The aim of the Aquaculture White Paper was to facilitate increased sustainable growth, improved fish welfare and enhanced profitability. As part of this, the White Paper proposed significant changes to the current traffic light system, including individual quotas for the release of salmon lice larvae.
The Parliament considered the Aquaculture White Paper in June 2025 and reached broad agreement in principle on a new, more sustainable management system for aquaculture. It was agreed to move from the current system to an approach based on actual environmental impact and sea-lice emissions.
There was, however, a substantial gap between what the Government regarded as a sufficient evidence base for the proposed lice quota regulation and what the Parliament required in order to approve the proposal. The White Paper was therefore returned to the Government for a more thorough review of the evidence base and impact assessment.
The new system was planned to come into force within 2–4 years from the date of the White Paper, and further work would be done on the potential transition from the current MTB (maximum allowed biomass) system to the new quota system. The Parliament has instructed the Government to investigate all relevant models, but at least in the short term, a sea lice quota system remains the most likely outcome. The Parliament emphasized the need for a strengthened evidence base on environmental impacts and enhanced monitoring of wild salmon.
The Ministry of Trade, Industry and Fisheries was expected to present a revised Aquaculture White Paper during the first half of 2026, but this timeframe was not met. There are signals that this work will only be completed in 2028 – and it could possibly take even longer.
The Traffic Light System will remain in force until new regulation is adopted. It is likely that there will be further traffic light assessments and consequent reductions in production capacity; most recently as adopted through the 2026 regulation on adjusted production capacity (Nw. Kapasitetsjusteringsforskriften), where production area 3 in Western Norway remained red and thus subject to further reductions. Only three production areas have "green" status and will be offered growth; the environmental status of the remaining nine production areas is considered yellow and will remain at current capacity levels. A mere net growth of 2 900 tonnes is in reality offered by this latest capacity adjustment. Producers in production area 3 are subject to reductions with significant financial consequences, based on a system that the Government itself has acknowledged does not function as intended. In our view, no reductions should be imposed under this system until the work on the Aquaculture White Paper has been completed and implemented.
The sea trout indicator will likely be part of the 2028 assessment for the first time. Based on the current system, large parts of the coast are in that case expected to be classified as having an 'unacceptable' environmental status and would therefore face capacity reduction.
Environmental schemes
Separate from the ongoing work with the White Paper, the Government introduced a new scheme in October 2025 allowing fish farmers in "red" areas to regain reduced production capacity if used in closed containment systems.
Section 15 of the Production Area Regulation (Nw. Produksjonsområdeforskriften) now allows aquaculture operators in red production areas to u tilise reduced production capacity, provided that production takes place in closed production units that meet specified environmental requirements, including requirements for a sealed barrier, lice-preventing water intake, collection of sludge, and double escape prevention.
If the Government's proposal in the Aquaculture White Paper to introduce tradeable lice quotas is implemented, the scheme will in practice lose its substance, as it is inherently linked to the capacity reduction mechanism in the traffic light system.
The industry has called for a corresponding environmental scheme applicable to the entire country, and in 2024 the Parliament requested the Government to propose a technology-neutral environmental flexibility scheme for all licenses (request resolution no. 606). The Ministry has so far expressed the view that the proposed regulation introducing lice quotas can in itself be regarded as a broad environmental flexibility scheme. The reasoning is that the combination of lice quotas and the removal of company-level MAB (maximum allowed biomass) will enable operators investing in low-emission technology to increase production without the production limits currently imposed.
In October 2026, however, the Minister of Fisheries and Ocean Policy announced that the Government is working on an environmental scheme, similar to the scheme in force in red areas, which will apply in all production areas. Both the timeline and specific contents of this scheme remain uncertain.
The Production Area Regulation
Main rule (section 15)
Reduced capacity may be used for production from the effective date of the adjustment, but only subject to the specific conditions set out in section 15. The capacity is linked to the individual license and must be used within the applicable biomass limits.
Requirements for the production unit (section 15)
The production unit must satisfy all of the following conditions:
- Sealed barrier: A minimum of one sealed barrier preventing natural water flow between the farming volume and the surrounding environment.
- Water intake: Must prevent intake of eggs and free-swimming stages of salmon lice.
- Collection: Must be designed so that sludge and feed residues can be collected.
- Escape prevention: Double security measures around intake, outlet and other openings. Other enclosures: double security measures for the entire unit.
- Verification: An independent and competent professional body must verify that conditions 1–4 are met.
Challenges associated with the scheme include stringent and ambiguous conditions/functional requirements (in practice) as well as lengthy administrative processing. With some exceptions for larger fish farmers, the scheme has not yet resulted in a large-scale transition to closed containment systems, as the industry awaits the outcome of the White Paper process.
Originally, this was intended to be a broader environmental flexibility scheme that could be deployed along the entire coast, not only in red areas (where production capacity has been reduced). Such a broader system could coexist with other potential changes to the regulatory framework, but the scheme as currently proposed would not be viable if the changes set out in the White Paper are implemented.
Key contacts
Mons Alfred Paulsen
PARTNER // ADVOKAT
