Twenty-one of Norway’s leading salmon farming companies – including Mowi, Lerøy, and Austevoll – have filed a class action lawsuit against the Norwegian government, challenging the country’s “traffic light” system for regulating sea lice impacts.

Introduced in 2017, the system divides Norway’s coast into 13 production zones, assigning each a green, yellow, or red status based on the risk farmed salmon pose to wild stocks. In red zones, farms must reduce production; in green zones, they can expand. Regulators recently proposed tying each farm’s allowable biomass directly to its sea lice levels, adding stricter local limits.

Producers argue the system unfairly penalizes farms that maintain good environmental practices but happen to operate in a red or yellow area. They say the model lacks transparency and creates economic uncertainty, discouraging investment and innovation.

The Norwegian Parliament has temporarily paused the rule changes while the courts consider the lawsuit. Industry groups warn that if the current framework stands, it could constrain production growth and threaten jobs in coastal communities.

Norway’s case is being closely watched across global aquaculture. As regulators worldwide look to link environmental performance with production rights, the outcome could shape how other nations design similar systems to manage sea lice and sustainability.