By the end of 2025, only electric cars will be sold in Norway – What lessons can Europe learn from the country’s success-story in electrification?
OR Norway is a model for the transition to electric vehicles (EVs). According to official data, 9 out of 10 cars sold last year in the country were electric.
With strong government measures, strong infrastructure and the support of public opinion, Norway is remarkably focused on tackling climate change. The goal? By the end of 2025 all passenger cars sold will be zero-emissions vehicles – and if this actually happens, Norway will have achieved this target a decade earlier than the EU.
Why in Norway?
Of course, wealth also contributes to all this, as does the size of the country. Norway has 5.5 million inhabitants and is one of the richest nations in the world thanks to its oil reserves – the largest in Europe after those of Russia.
However, one more key factor is added to these elements. According to Robbie Andrews, who works at the CICERO Center for International Climate Research in Oslo, Norway is pursuing a thorough plan to develop its domestic electric car industry, which has been underway for decades – specifically since the 1990s, when Norway also sought to establish a company that would manufacture EVs. And as expert Andrew explains, the establishment of such a company proceeded rather unimpeded, as there were no powerful car industry lobbies in the country that could oppose the efforts.
At first, the production of electric cars had limited commercial success. Despite the fact that only a few thousand EVs were sold, this particular initiative contributed the most to the strengthening of social consciousness and the acceptance of electric mobility. In this way, the way was also opened for the increase in purchases of electric cars by international manufacturers, such as Volkswagen and Tesla.
Strong incentives for switching to electric mobility
In addition, the incentives provided by the country’s governments, which waived VAT and customs duties for the import of EVs, which usually amount to 30-50% of the purchase cost of an electric vehicle, were also decisive. EV drivers also did not have to pay tolls and parking fees, and could also drive in the bus lanes in the center and suburbs of Oslo.
Having almost reached its 2025 target, the Norwegian government recently moved to partially reinstate the VAT on large and luxury EVs – but at the same time lower income citizens continue to benefit from government initiatives.
Bjorne Grimsrud, director of the transport research center TOI in Oslo, estimates that the incentives the country offers to citizens are “quite costly”: “The government received 75 billion kroner annually from car taxes and tolls, but the this amount has doubled,” the expert explains to DW, adding however that the country is able to cover the economic loss – given its wealth, but also of the goals to make Norway climate neutral by 2050.
Other countries are cutting related subsidies
Other countries, including Germany, have been accused of putting their climate goals on the back burner by cutting subsidies for new electric vehicles. As the German transport agency KBA revealed a few days ago, in 2024 there were 27.4% fewer EVs registered in Germany.
So if Germany, Europe’s largest car market and one of the biggest producers of electric vehicles, really wants to achieve its goal of having 15 million electric vehicles on the road by 2030, it will probably have to reconsider the reduction of incentives to citizens.
Home charging points are a priority
Another important advantage of Norway is its electricity grid – one of the best and greenest grids in the world. Today, hydropower makes up over 90% of the country’s electricity production. In fact, the country also has a surplus of energy, an element that makes it easier to charge electric vehicles… at home.
“While in other parts of Europe access to charging points is often an issue, most Norwegians can charge their electric cars at home [και όχι οπωσδήποτε σε κάποιο δημόσιο σταθμό φόρτισης]”, says Grimsrud.
In a 2022 study, the Norwegian Electric Vehicle Association found that about three-quarters of electric vehicle owners live in single-family homes, making it quite easy to install home charging stations. And according to a survey by London-based consultancy LCP, 82% of EVs in Norway are charged at home – although this percentage is lower in urban areas.
“The presence of Level 1 charging (i.e. the use of lower power charging stations, such as those placed in homes, businesses and schools) in Norway probably facilitated the shift to electric vehicles significantly,” points out to DW Lance Noel, a senior executive of the San Diego Center for Sustainable Energy.
Therefore, Noel believes that other countries should probably also prioritize the development of Level 1 charging – in other words “to consider cheaper but also more visible charging methods, which would also contribute to the integration of EVs into the society” and not to prioritize the development of public charging infrastructure.
What is the US doing?
Awaiting the return of Donald Trump to the White House, many Americans are worried that the new president will draw up a different strategy, contrary to the one followed by the Biden administration with the promotion of electric mobility.
The Republican politician has promised to end tax credits of up to $7,500 for electric car purchases, as well as impose new tariffs on foreign carmakers – measures that are likely to push prices up significantly.
Several US states are expected to take a similar stance by limiting the incentives they provide for the purchase of electric cars. And all this despite the fact that, according to Cox Automotive’s estimate, the degree of integration for EVs in the US reached only 8% last year.
In recent months, sales of electric vehicles have declined in the US – due to both cost and access to public charging stations – with Tesla reporting its first sales decline in more than a decade.
Given that the US is likely to take “a step back” on EV policies under Trump, Noel notes that it’s not particularly surprising that the countries that invest the most in electrification are also the ones reaping the biggest benefits. benefits – such as Norway. What should countries do that seek to achieve what Norway has achieved? According to Noel, the answer is clear: “to have the political will to draw up strong and clear strategies”.
Edited by: Giorgos Passas
Source: Skai
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