Norway Faces Energy Crisis as Oil and Gas Production Declines

Norway has emerged as a pioneer in electric vehicle (EV) adoption, with nearly 90% of cars sold last year being electric. The Scandinavian country has surpassed all others, boasting more battery-powered vehicles than petrol-powered ones on its roads. This shift to electric vehicles began in the 1990s and was significantly bolstered by technological advancements and government incentives. Key incentives for electric vehicles in Norway include the elimination of road taxes, free access to toll roads, and the abolition of VAT on electric cars since 2001, which has made them more affordable than traditional combustion vehicles. The Norwegian Electric Vehicle Association, led by Christina Bu, highlights that Norway's success in the EV market is due to both lucrative incentives and measures that make owning a polluting vehicle costly. Despite initial challenges, including a lack of models and charging infrastructure, Norway's automotive landscape transformed dramatically, with EV ownership climbing from just 3% of new car sales in 2012 to peaks of 94% in recent months. Currently, Norway boasts over 30,000 public charging points, reflecting its robust charging network, which is the second largest in Europe per capita. Looking ahead, while achieving a target of 100% zero-emission vehicle sales by 2025 may not be feasible, experts expect that green vehicle sales will continue to dominate. The Nordic region is leading the global charge in electrification, with high EV sales rates also evident in Iceland, Sweden, Finland, and Denmark. In contrast, countries like Spain lag behind, with only a 5.8% EV sales rate, highlighting the significant impact of supportive policies and public perception in driving the electric vehicle market.

Norway has emerged as a global leader in electric vehicle (EV) adoption, with almost 90% of cars sold last year being electric. This significant shift, accelerated by public incentives and policies, was initiated in the 1990s. Norway abolished the road tax for electric vehicles in 1990 and eliminated VAT on these cars in 2001, making them more affordable than traditional petrol or diesel vehicles. Currently, Norway boasts the world's highest ratio of battery-powered cars to petrol cars. Despite facing a cold climate and low population density, the Nordic nation has successfully transformed its road transport system, aided by technological advancements. The number of electric vehicle models available has increased from fewer than 10 in 2014 to over 160 today, with Tesla now leading sales in the country. Public charging infrastructure has also improved, with 30,000 charging points available, making it the second-largest network in Europe relative to its population. Norway's government has set a target for all new vehicle purchases to be zero-emission by 2025, and while 100% may not be reached this year, sales of green cars are expected to exceed 95%. Norway’s scenario contrasts sharply with countries like Spain, where electric vehicle sales are only 5.8%. Barriers in Spain include cumbersome access to direct subsidies and a lack of compelling public incentives.

Norway has achieved a remarkable milestone, with nearly 90% of cars sold last year being electric, making it the world leader in road transportation electrification. This is the only country where battery-powered vehicles outnumber petrol ones on the roads. Norway’s shift to electric cars began in the 1990s but gained momentum due to a series of government incentives aimed at making electric vehicles more attractive than combustion cars. Key policies introduced over the decades include the elimination of road taxes for electric vehicles in 1990, free toll road access in 1996, and abolishment of VAT on electric cars in 2001, which significantly reduced their costs. For instance, a €40,000 utility vehicle would be priced at €50,000 if it were combustion-powered due to the 25% VAT. Public support has played a crucial role in this transformation, supported by the country’s substantial oil revenue. Technological advancements have also fueled growth, with over 160 electric vehicle models now available compared to fewer than ten in 2014. Norway boasts a robust charging infrastructure with 30,000 public charging points, the second-largest in Europe relative to its population. In 2017, the Norwegian parliament set a target for all new vehicle purchases to be zero-emission by 2025. While achieving the target may be challenging, current trends indicate that the percentage of green car purchases could exceed 95% of total sales this year. Diesel vehicles remain the most common, but their registrations have been declining. Compared to its European counterparts, the Nordic countries are leading the way in electric vehicle adoption, with Iceland at 71% and Sweden, Finland, and Denmark not far behind. In contrast, Spain's adoption rate stood at just 5.8% in 2024, hindered by cumbersome subsidy processes.