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Norway: EV policy

Sector: Transport

Between 2010-2022, electric vehicle (EV) stock increased from 0.1% to 27%.

As of 2022:
BEV stock: 590,000
PHEV stock: 200,000
Public fast charging: 9,100
Public slow charging: 15,000
Share of EV stock: 27%
Share of EV sales: 88% (highest globally) [1]

Traction

Historical competitive advantage/disadvantage

Abundant hydro electricity, low price and flexibility incentivises electrification and electric vehicles (EVs) [2]

End-use technology adoption/infrustructure

Private cars and well-developed road
networks enable the transition to
private electric vehicles (EVs). [3]

Institutional framework and governance structure

The transport sector as a key priority
receives public funding for research and development. [4]

Institutional framework and governance structure

Revenue from oil and gas transferred to investments in research and development, infrastructure and integration, and for incentives. High taxation on fossil fuels. [2]

Behavioural and socio-cultural

General consciousness in public regarding climate change and its impact. [6]

Other

Air pollution from transport sector is major environmental and health concern in Norway and the electric vehicle (EV) programme is seen as an efficient way to reduce air pollution. [5]

Institutional framework and governance structure

Consistent cross-party political agreement and government funding drives the electric vehicle (EV) initiative. [5] 

Policy 1

Vat (25%) exemption for electric cars for the period 2001-2022. From 2023, Norway will add 25% VAT on purchase prices over 500,000 Norwegian Kroner. [7]

Policy Impact
Level: High
Evaluation: ex-post
Indicator:

The VAT exemption played a pivotal role in driving the rapid adoption of electric cars in Norway. It made electric vehicles significantly more affordable compared to their gasoline or diesel counterparts, encouraging consumers to make the switch to electric.

Policy 2

Only zero emission vehicles (ZEVs) will be sold from 2022 for cars and from 2025 for city buses. [9]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator:

Insufficient data to assess impact due to recent implementation.

Policy 3

Light-duty vehicles (LDVs) emissions standard target set at 85 gCO2/km for 2021 and to reach zero gCO2/km by 2025. [9]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Policy 4

85% of government vehicles must be “zero emission” by
2015; 60% of busses electrified in Oslo by 2025. [8]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Policy 5

Registration tax exemptions according to CO2 and Nox emissions; reduced effect on plug-in hybrid electric vehicles (PHEVs). VAT exemption for Battery Electric Vehicles (BEVs) (1996-2021). Reduced tax from 2021. Full tax from 2022. [8]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Policy 6

50% reduced company car tax (2009-2017), reduced to 40% (2018-2021) and 20% from 2022. [8]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Policy 7

Enova subsidises fast-chargers through competitive bidding. [11]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Policy 8

Parking for electric vehicles (EV) - for some municipalities it is free. The rest have decided to apply a fee of not more than 50% of the fee for fossil-fuel cars. [9]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Policy 9

No charges on toll roads (1997- 2017).
No charges on ferries (2009- 2017). [8]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Policy 10

Database for charging stations. [10]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Policy 11

Special electric vehicle (EV) license plates. [11]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Policy 12

Fast charging stations every 50 km on main roads . [11]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Policy 13

Fiscal compensation for the scrapping of fossil vans when converting to a zero-emission van. [9]

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Policy 14

Oslo electric vehicle supply equipment (EVSE) procurement installation: establishes 400 charging points from 2008-2011.

Policy Impact
Level: TBD
Evaluation: TBD
Indicator: TBD

Lock-ins

Negative Lock-ins

Economical

The push to persuade households to purchase zero emission vehicles (VEVs) has come at a price. The policy has contributed to a sizeable revenue decline from car-related excise duties. The tax expenditure from the VAT exemption reached NOK 11.3 billion (USD 1.3 billion) in 2021.

Tags

  • Europe
  • Transport

References

2. IEA, 2022: Norway Energy Policy Review 2022
https://www.iea.org/reports/norway-2022
4. Research Council of Norway, 2015; The Transport 2025 Programme Work Programme 2015-2024
https://www.forskningsradet.no/siteassets/publikasjoner/1254021720524.pdf
5. Center for public impact, 2016; The rise of electric vehicles in Norway
https://www.centreforpublicimpact.org/case-study/electric-cars-norway
6. Broadbent et al, 2017; Electric vehicle adoption: An analysis of best practice and pitfalls for policy making from experiences of Europe and the US
https://compass.onlinelibrary.wiley.com/doi/10.1111/gec3.12358
7. Eivind Robstad, 2022; Introduction of VAT on the purchase amount exceeding 500 000 NOK for electric vehicles - amendments to the VAT zero rate from 2023
https://blogg.pwc.no/skattebloggen-en/introduction-of-vat-on-the-purchase-amount-exceeding-500-000-nok-for-electric-vehicles-amendments-to-the-vat-zero-rate-from-2023
11. Kotilainen et al, 2019; From path dependence to policy mixes for Nordic electric mobility: Lessons for accelerating future transport transitions
https://link.springer.com/article/10.1007/s11077-019-09361-3