Norway’s electric vehicle incentives

Norway has gradually introduced incentives for zero-emissions vehicles since the 1990s and currently has a target stating that 100% of new passenger cars and light goods vehicles sold be zero-emissions (electric or hydrogen) by 2025. The incentives were wide-ranging to stimulate consumer uptake. Tax incentives include a progressive tax on vehicles based on their weight and emissions, which makes EVs more economical for consumers. EVs are not only exempt from emissions taxes, but also from a VAT on purchases and leases. In addition, the government incentivises demand for EVs through exemptions or a minimum 50% reduction in road taxes and tolls. Moreover, incentives for EVs also include lower parking fees and access to bus lanes, all of which are designed to increase the consumer appeal of EVs over fossil fuel-based vehicles. Based on the effect of the incentives currently in place, Norway expects to achieve its EV target through promoting a shift in consumer preferences toward EVs, without imposing an official ban on the sale of fossil fuel vehicles. As a result of the incentives, over 60% of new vehicles sold in Norway so far in 2021 were electric, bringing the total EV vehicle fleet to more than 400 000 cars. 

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