88.9 per cent of all new passenger cars sold in Norway in 2024 were fully electric, or nine in every ten cars, with the Norwegian government on track to achieve 100 per cent in 2025.
Much of this success can be attributed to decades of initiatives aimed at decarbonising transport in the country alongside steadfast policies locking in climate-conscious transport targets. Norway’s EV leaders are confident that they will be they first country in the world to erase petrol and diesel engine cars from the new car market.
Interestingly, Norway is Europe’s second largest oil producer, the first being Russia, but penalises petrol and diesel cars with high taxes. The tactic here is to benefit fromk external oil demand and use the revenue to fund domestic projects, such as EV subsidies.
Weighing up vehicle costs in Norway will prove favourable for EVs, since import and value-added tax exemptions for EVs are in place while petrol and diesel vehicles receive high taxes. The Norwegian government uses a vehicles weight, CO2 and Nox emissions to calculate its purchase tax, creating a progressive system which means heavy-duty high emission vehicles are very expensive. This system has been fine-tuned over the years to have more emphasis on associated emissions than weight.
This policy has been consistent across Norwegian government over the years, holding its place with both left and right wing parties. The lesson from this is simple: countries with consistent green policies are more likely to exceed. While the UK has pushed back zero emission vehicle targets and seen sales slump, Norway has built and consolidated the narrative that EVs are more favourable and economically savvy for drivers.
As for EV incentives post-purchase, Norway has a policy in place meaning counties cannot charge EVs more than 70 per cent of the toll price for fossil fuel cars, a figure which varies within different local authorities but does not exceed 70 per cent. What’s more, EV drivers pay a maximum 50 per cent of the cost of ferry fares for their vehicle.
EV drivers in Norway benefitted from incentives early on, with the government phasing out some of these incentives now that EV ownership is so high. For example, between 1996 and 2021, EV drivers paid no annual road tax, no charges on toll roads, and between 1999 and 2021 they were entitled to free municipal parking. Today, EV drivers receive up to 50 per cent off parking, with many free parking chargepoint stations existing in Norway’s biggest cities.
A key point to take from Norway’s EV success story is about narrative. While many countries have proposed (and often withdrawn) a ban on petrol and diesel vehicles, Norway instead opted for incentivising EV ownership. While the former narrative invites anger and contention, the latter seems like a reward and inspires drivers to change their perspective or consider other options. Countries that roll out measures designed to punish petrol and diesel vehicle owners without properly incentivising low emission alternatives will quickly see their policies met with hostility.
What’s more, Norway’s government used its policies and narrative to directly address the primary EV ownership concern: where am I going to charge my car?
Norway benefits from an efficiently organised national charging system. All of Norway’s main roads have accessible charging stations and fast charging, a preference among drivers, is prevalent throughout the country. This further highlights the notion that building a competent system which supports the change you wish to make will give policies some backbone and much needed support.
23 December 2024
