Norway on track to be first to go all-electric

Norway is on the verge of becoming the first country to fully transition to electric vehicles. Ståle Fyen, a typical Norwegian motorist, is among the many who have embraced this change, driving an electric car with pride. In fact, Norway has become a global leader in electric vehicle adoption, with electric cars making up an astonishing 90% of all new vehicle sales last year. This remarkable achievement raises the question: can other countries follow in Norway's footsteps? For over 75 years, the Oslo-based car dealership Harald A Møller has been a prominent player in the automotive market, primarily importing Volkswagens. However, in early 2024, the dealership made a significant shift by ceasing the sale of fossil fuel cars altogether. Now, every passenger vehicle available in their showroom is electric. Ulf Tore Hekneby, the chief executive of the dealership, firmly believes that advising customers to purchase internal combustion engine vehicles is misguided. He states, 'The future is electric,' as he walks through the showroom filled with electric cars. 'Long-range, high-charging speed. It's hard to go back. ' In the streets of Oslo, electric cars have become a common sight, with nearly every other vehicle proudly displaying an 'E' for electric on its license plate. With a population of 5. 5 million, Norway has adopted electric vehicles at a pace unmatched by any other nation, and it is on the brink of phasing out the sale of new fossil fuel cars entirely. Last year, the number of electric cars on Norwegian roads surpassed those powered by petrol. When diesel vehicles are included, electric cars account for nearly a third of all vehicles in Norway. According to data from the Norwegian Road Federation (OFV), 88. 9% of new cars sold in the country last year were electric, a significant increase from 82. 4% in 2023. In some months, sales of fully electric cars reached as high as 98%, while the sales of petrol and diesel cars dwindled. In stark contrast, the UK saw electric cars make up only 16. 5% of new car registrations in 2024, despite this being a record high. The United States reported an even lower figure of 7. 6%. nnNorway's success in the electric vehicle revolution has been a long time in the making, spanning three decades. Christina Bu, the secretary general of the Norwegian EV Association, explains that the journey began in the early 1990s. The government gradually increased taxes on petrol and diesel engine cars, making them significantly more expensive to purchase. In contrast, electric cars were exempted from these taxes, creating a financial incentive for consumers to make the switch. The initial support for electric vehicles was aimed at helping two Norwegian manufacturers of early EVs, the Buddy and TH! NK City. Although these companies eventually went out of business, the incentives for greener vehicles remained in place. Norway's Deputy Transport Minister, Cecilie Knibe Kroglund, emphasizes the importance of making electric vehicles a viable choice for consumers. Despite being a major oil and gas producer, Norway is committed to ensuring that all new cars sold will be 'zero emission' starting in 2025. This goal was set back in 2017, and it is now within reach. Kroglund expresses confidence, stating, 'We are closing up on the target, and I think that we will reach that goal. ' She believes that Norway has already made significant progress in transitioning to electric passenger cars. nnThe key to Norway's success lies in its long-term and predictable policies. Instead of outright banning combustion engine vehicles, the government has guided consumer choices through a series of measures. This includes imposing higher taxes and registration fees on fossil fuel vehicles while eliminating VAT and import duties for low-emission cars. Additionally, a range of perks, such as free parking, discounted road tolls, and access to bus lanes, have further incentivized the adoption of electric vehicles. In comparison, the European Union has set a target to ban the sale of new fossil-fuel cars by 2035, while the UK government has similar plans. Although petrol and diesel car sales are still allowed in Norway, the demand for them has significantly decreased. The country's substantial oil and gas exports enable it to forgo domestic tax revenues from petrol and diesel sales. For many Norwegians, like Ståle Fyen, who purchased his first electric vehicle 15 months ago, going electric makes economic sense. He explains, 'With all the incentives we have in Norway, with no taxes on EVs, that was quite important to us money wise. ' He acknowledges that in cold weather, the range of electric cars may be reduced by about 20%, but with the extensive charging network in Norway, this is not a major concern. 'You just have to change your mindset and charge when you can, not when you need to,' he advises. Another driver, Merete Eggesbø, recalls being one of the first people in Norway to own a Tesla back in 2014. She wanted a car that was environmentally friendly, stating, 'It gave me a better conscience driving. ' At many petrol stations in Norway, fuel pumps have been replaced with fast-charging points, and the country now boasts over 27,000 public chargers. This is a remarkable achievement, especially when compared to the UK, which has a population 12 times larger but only 89 chargers per 100,000 people. Last year, Tesla, VW, and Toyota were the top-selling electric vehicle brands in Norway, while Chinese-owned brands like MG, BYD, Polestar, and XPeng accounted for 10% of the market, according to the Norwegian Road Federation. Unlike the US and EU, Norway has not imposed tariffs on Chinese electric vehicle imports. Christina Bu believes that Norway's electric vehicle revolution can serve as a model for other countries. However, she emphasizes that each country must find a way to implement similar policies that work for their specific market. She asserts, 'I don't think a green mindset has much to do with it. It has to do with strong policies, and people gradually understanding that driving an electric car is possible. ' Norway's wealth, largely derived from its oil and gas exports, has also played a significant role in its ability to invest in infrastructure and absorb the loss of tax revenue from petrol and diesel cars. The country benefits from an abundance of renewable hydroelectric power, which accounts for a significant portion of its energy supply. Kjell Werner Johansen from the Norwegian Centre for Transport Research predicts, 'A third of cars are now electric, and it will pass 50% in a few years. ' He believes that while a few new petrol or hybrid cars may still be available, the demand for diesel cars has dwindled significantly.