Norway has become the poster child for the transition to electric vehicles (EVs). Last year, official government statistics showed that almost nine out of every 10 cars sold were electric.
In 2023 — the most recent year that data is available — the global EV adoption rate was just 18%, according to the International Energy Agency.
The Nordic country has made a remarkable commitment to combating climate change, driven by strong government policies, robust infrastructure, and a supportive public.
Norway aims for all passenger cars sold to be zero-emission vehicles by the end of this year, a decade ahead of the European Union — of which it is not a member.
Rich, small population, plus strong incentives
Norway’s wealth and size undoubtedly played a role in its EV success. The country has a population of 5.5 million and is one of the world’s richest nations, thanks to substantial oil reserves — the largest in Europe after Russia. However, these factors alone don’t fully explain the remarkable progress made.
Robbie Andrew, a senior scientist at the Oslo-based CICERO Center for International Climate Research, thinks Norway’s decades-long commitment to domestic EV development was a critical factor.
“In the 1990s, Norway made efforts to create a company to manufacture EVs,” Andrew told DW, noting how the absence of a powerful domestic auto industry lobby facilitated these initiatives.
Although early attempts at EV production had limited commercial success — only a few thousand vehicles were sold — they fostered public awareness and acceptance of electromobility. This paved the way for the widespread adoption of battery-powered cars from global manufacturers like Tesla and Volkswagen.
Tax breaks and ease of movement helped
Favorable state policies have, undoubtedly, helped smooth the transition to electric vehicles. Norway levied no VAT (Value-added tax) or import duties on EVs, which can make up between a third and almost half of the cost of a new car.
EVs were also exempt from toll road charges and parking fees. They could even use bus lanes in and around the capital, Oslo.
Higher-income groups benefited the most from the tax breaks and the newly purchased EV was often a second family car.
Having almost reached the 2025 adoption goal, the government recently rolled back some of those incentives. VAT is now partially applied to large and luxury EVs, costing more than 500,000 kroner ($44,200, €42,500). Drivers from low-income groups still gain from many of the incentives and falling electric vehicle prices.
Bjorne Grimsrud, director of the Oslo-based transportation research center TOI, thinks the government incentives have been “very costly” but affordable, given the country’s wealth and desire to be climate-neutral by 2050.
“The government used to collect 75 billion kroner annually from taxes and tolls on cars, but that has been cut in half,” Grimsrud told DW.
EV adoption elsewhere hurt by subsidy cuts
Other countries, including Germany, have been accused of backsliding on climate-mitigation goals by cutting subsidies for new electric vehicles long before targets are reached. On Monday, the KBA federal transport authority revealed that 27.4% fewer EVs were registered in 2024 in Germany, Europe’s largest auto market.
Those decisions will need to be reconsidered, if Germany, a major EV manufacturer, is to meet its target of having 15 million electric vehicles on the road by 2030.
Norway prioritized home charging points
For Norway, another advantage is the power grid — one of the greenest and most robust in the world. Hydropower accounts for more than 90% of the country’s electricity production, typically producing a surplus of energy, which helped facilitate the home charging of EVs.
“Whereas access can be a challenge elsewhere in Europe, most Norwegians can charge their EV at home [rather than at public charging points],” Grimsrud said.
A 2022 study by the Norwegian EV Association found around three-quarters of electric vehicle owners live in detached homes, which made it easier to install home-charging boxes. A report by the London-based consultancy LCP found that 82% of EVs in Norway are charged at home, although this figure is lower in urban areas.
“The ubiquity of Level 1 charging in Norway probably made a much bigger impact [on EV adoption],” Lance Noel, product lead at the San Diego-based Center for Sustainable Energy, told DW. Level 1 charging refers to the lower-power charging stations used at homes, businesses, and schools.
Noel said other countries would do well to “think of cheaper and more visible ways to make EVs integrated with society” rather than prioritizing faster, public charging infrastructure, known as Level 2 and 3.
Trump unlikely to replicate Norway’s success
As they await the return of Donald Trump to the White House, many Americans are concerned he will shift from the Biden administration’s policies aimed at promoting EV adoption, somewhat modeling Norway’s achievements.
The Republican president-elect has pledged to terminate federal tax credits of up to $7,500 (€7,230) for EV purchases as well as levying new tariffs on foreign automakers, which could fuel higher prices. Several US states also plan to shrink their own EV incentives. This is despite a projection from Cox Automotive that US EV adoption would reach just 8% last year.
The US has also seen a slowdown in EV sales in recent months, due to affordability concerns and a lack of charging infrastructure. Last week, Tesla reported its first sales decline in over a decade.
Noting how EV policies are likely to take a “step back” under Trump, Noel, who previously researched EV adoption in Nordic countries said it was hardly a surprise that countries investing the most in EV policy are reaping the most rewards.
“Perhaps the way countries that struggle the most to replicate what Norway has done will be to find the political willpower to have strong and clear policies,” he added.
Edited by: Uwe Hessler
