Norway’s EV increase has been within the works for a number of many years, and reveals the ability of a great incentive scheme to make radical change. The nation is one in every of quite a few European international locations that took benefit of a home oil increase via the twentieth century. North Sea Oil introduced riches to a number of nations, every of which used their newly-found wealth in very other ways, with dramatically totally different outcomes. The UK, as an illustration, used the money to fund tax cuts for the rich via the late ‘80s and early ‘90s.
By comparability, in 1990, Norway started pushing income from its oil reserves into a brand new sovereign wealth fund. That fund was used to make investments in quite a few industries, and is now value greater than $1 trillion. Norway has used its monumental financial institution steadiness to fund its home transition towards electrical autos with very beneficiant subsidies, together with no buy or import taxes, no highway tax and both free or closely discounted charges for toll roads, parking, ferries and firm automobile tax. EV drivers are additionally entitled to make use of bus lanes and obtain subsidies for scrapping older, fossil-fuel-powered autos.
For each carrot, there’s additionally a stick, and Norway has elevated the tax burden on gas-powered vehicles to encourage EV purchases. In a single instance, EV Norway explains that a normal VW Golf is taxed to the tune of €12,000 ($14,700) to make the e-Golf cheaper in a side-by-side comparability. Norway has used a few of that money to fund infrastructure funding, together with constructing a quick charging station each 30 miles or so on the nation’s major roads. All of which means it expects, by 2025, to have the ability to finish gross sales of fossil fuel-powered vehicles utterly.