The 50% rule

Since 2017 it has been up to the local governments to decide the incentives regarding access to bus lanes and free municipal parking. The Parliament has agreed on implementing a 50 % rule, which means that counties and municipalities can not charge more than 50 % of the price for fossil fuel cars on ferries, public parking and toll roads. The 50 % rule is already in function on county ferries and state ferries but will also be implemented on toll roads in the course of 2019. A rule of maximum 50 % parking fee at public parking for zero-emission cars is expected to be implemented by many municipalities from 2019.

Charging infrastructure

For longer distance trips, a well-organized charging network has to be in place. Today we have more than 10.000 publicly available charging points and more than 1500 cars can fast-charge at the same time. Even if EV owners are charging at home and manage without fast charging daily, they think it is essential to have the option to fast charge when needed.

Consumers are willing to pay a higher price for the service of fast charging. On average three times more than they pay for electricity at home.

By 2017 the Norwegian Government launched a program to finance the establishment of at least two multi-standard fast charging stations every 50 km on all main roads in Norway. With the exceptions of Finnmark and Lofoten, there has successfully been established fast charging stations on all main roads in Norway.

The norwegian car tax system

The overall signal from the majority of political parties is that it should always be economically beneficial to choose zero and low emission cars over high emission cars. This is obtained with «the polluter pays principle» in the car tax system. High taxes for high emission cars and lower taxes for low and zero-emission cars. Introducing taxes on polluting cars can finance incentives for zero-emission cars without any loss in revenues.

The Norwegian Parliament has decided on a goal that all new cars sold by 2025 should be zero (battery electric or hydrogen) emission vehicles. This is a very ambitious but feasible goal with the right policy measures. The Parliament will reach this goal with a strengthened green tax system, not a ban.

The purchase tax for all new cars is calculated by a combination of weight, CO2 and NOx emissions. The tax is progressive, making big cars with high emissions very expensive. For the last years, the purchase tax has been adjusted gradually to have more emphasis on emissions and less on weight.

The following example compares an EV model with a similar petrol model to illustrate how the Norwegian tax system makes EVs competitive in the market.

The current Government has decided to keep the incentives for zero-emission cars until the end of 2021. The VAT exemption for zero-emission vehicles in Norway has been approved by the EFTA Surveillance Authority (ESA) until the end of 2020. After 2021 the incentives will be revised and adjusted parallel with the market development.