How did oil-rich Norway become an electric car paradise?

Circle K has 16,000 petrol stations in Norway, but from the second half of this year, the number is not increasing, but is decreasing. In Oslo, Norway, in September 2019, Circle K successfully transformed its first gas station into an electric vehicle charging station, saying it was “absolutely the right investment” and would continue to drive.

It’s not easy to make changes, and oil is the company’s main source of revenue. When the company itself makes a change, we should also take a different view of the environment in which it is located.

How did oil-rich Norway become an electric car paradise?

Norway’s first gas station to be transformed into a charging station . . . Teslarati

Norway, located on the western side of the Scandinavian Peninsula on the northern side of Europe, has 1 city and 18 counties, with a population of 5.29 million, about half the size of Hangzhou, China. And in a country with a small population, electric cars are surprisingly popular. According to the Nordic Electric Car Barometer 2019 survey, Norway’s market share of electric vehicles is likely to exceed 50% in 2019, meaning that half of all vehicles on the road nationwide are all electric vehicles. Norway has thus become the world’s largest in car ownership per capita.

More interestingly, Norway is the largest oil producer in Western Europe, and the oil industry is an important pillar of its national economy. In this sharp contrast, Norway’s electric car ecosystem is even more curious: what makes such an electric car “paradise”?

Under “Paradise”, environmental protection is outstanding

The Tesla Model S made its first appearance on the Continent in 2013. Unlike many people think, Tesla chose to deliver the first stop of the race to Norway.

Before 2010, Norway had fewer new electric vehicles than neighbouring Sweden, but now it has 10 times as many new electric vehicles as Sweden. In just a few years, Norway has become the “big mac” of the electric car market, with a third of all electric cars flowing into the country.

For the full year 2018, Norway’s electric vehicle sales grew by 40%, with 31.2% of the 147,929 new passenger cars added for the year being pure electric vehicles. Instead of taking pride in it, Norway felt the number was lower than expected, with the Norwegian Road Information Authority saying the decline in car sales in 2018 compared to 2017 was due to the lack of choice of electric vehicles.

As we all know, the world’s highest-selling electric vehicles are China and the United States. Norway, which was the third largest in the world and the number one in Europe, was recently overtaken by Germany, which increased its subsidy for electric cars by 2,000 euros. On the other hand, The winter in Norway is too cold, indirectly making it difficult for sales of electric cars to break through higher shares.

However, Norway remains the most “electric” country, without one. Norway’s parliament has passed a bill to zero emissions of all new private cars and light vehicles by 2025. As things stand, achieving the goals is not impossible.

Why is this happening? Many people’s first instinct is that Norway’s small size, coupled with a small population, will not have much concern about battery life, electric vehicles have been rapidly spread. Another way of saying that the Norwegian people as a whole are environmentally conscious, and the vast majority of people choose to travel green.

Neither is wrong, but the deeper reason is that it can’t be separated from government policy.

What is worth learning beyond the subsidy drive?

It is no accident that Norway has become the world’s standard-bearer for electro-electricisation.

It seems inappropriate if we simply boil it down to the Chinese saying “the world and the earth”, after all, Norway was working on zero emissions decades ago.

Or start at the energy level. Although Norway is a big oil country, almost all of its domestic energy comes from hydropower. It is reported that 98% of Norway’s electricity comes from renewable wind and hydropower, and that it has a natural electric advantage over countries where electricity comes from high-polluting coal-fired power plants.

To achieve this shift, the Norwegian Government has invested heavily in incentives and infrastructure.

In 1990, Norway introduced import-free import duties on electric vehicles, which is a starting point. In 2001, Norway introduced a 25% vat exemption on the purchase of electric vehicles, and electric vehicles also benifited. With VAT exemption, electric cars in the Norwegian market are essentially the same as those of the same class of fuel, or even cheaper.

For example, the Volkswagen Golf in Norway costs 31,000 euros (about $35,000), including taxes of about 11,000 euros. By comparison, the all-electric e-Golf costs 27,000 euros. Sports car-loving people choose between the Ford Mustang (81,000 euros, about $93,000) and the Tesla Model S (66,000 euros, about $75,000).

Coupled with Norway’s higher price of petrol and the cost of daily use, electric cars are definitely a better option.

Of course, large subsidies cannot last, the 25% VAT exemption policy will not be applied permanently, and more importantly, the “tax-free” strategy promoted by Norway.

From the 1990s to the present, Norway’s tax exemptions for electric vehicles include, but are not limited to:

Reducing road taxes;

free of tolls and ferry charges;

Some public parking lots are free of charge;

Access to bus lanes (introduced in 2005, cancelled in Oslo)

These tax exemptions seem to be more appealing to the public than mere financial subsidies. And the Norwegian government’s strategy is “the bigger the pollution, the more taxes they have,” said Christina Bu, general secretary of the Norwegian Electric Vehicle Association, which has said the huge increase in electric cars in Norway is due to “high taxes on fossil fuel cars.” Free of purchase tax and sales taxes on new electric vehicles, as well as local incentives. ”

Christina Bouc?o doesn’t think the strategy can be replicated around the world because “they’re going to be different.”

In fact, Norway is a very reference country. Norway’s success in electro-electricization seems sustainable as a nation-powered country has completed an electric transformation and transformed it from a “subsidy-driven” to a “demand-driven” one.

Most importantly, it shows all countries in the world a path to zero emissions, allowing people to see the good effects of no more exhaust on the road. Norway has taken an electric route of “characteristicism”, but by no means the only one.

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