OSLO, Norway – Norways government says it will create a carbon-emissions program to compensate domestic manufacturers, in the hope of dissuading them from moving their industries to countries with less stringent climate regulations.

The government says that the European unios Emission Trading Scheme, which Norway adopted in 2005, has led to an increase in energy prices and a reduction in the competitiveness of domestic enterprises.

The EUs scheme allows for countries to compensate industry, and Norways government says its own program will be based on calculation methods in the EU guidelines. The Norwegian program will go into force in July 2013 and last until 2020.

Environment Minister Bard Vegar Solhjell said Tuesday in a statement that the program will combine “good climate policy with good industrial policy.”