Norway boasts the highest electric vehicle adoption rate in the world. According to the Norwegian Road Federation (OFV), 82% of new car sales in Norway in 2023 were electric vehicles (EVs). In comparison, Kelley Blue Book estimates that only 7.6% of new car sales in the U.S. last year were electric. In China, the world’s largest auto market, 24% of new car sales were EVs in 2023, as reported by the China Passenger Car Association.
“Our goal is that all new cars by 2025 will be zero-emission vehicles,” said Ragnhild Syrstad, the state secretary of the Norwegian Ministry of Climate and Environment. “We think we’re going to reach that goal.”
The Norwegian government began incentivizing EV purchases back in the 1990s by offering free parking, use of bus lanes, no tolls, and, most importantly, no taxes on zero-emission vehicles. However, it wasn’t until about 10 years ago when Tesla and other EV models became available that sales really started to take off, according to Syrstad.
In addition to the high adoption of EVs, Norway’s capital, Oslo, is also electrifying its ferries, buses, semi trucks, and even construction equipment. Gas pumps and parking meters are being replaced by chargers, creating an electric utopia of the future. Norway’s grid has been able to handle the influx of EVs so far because of its abundance of hydropower.
“Electric cars are maybe a third of the price of gasoline because we have close to 100% hydropower. It’s cheap. It’s available and renewable. So that’s a big advantage,” said Petter Haugneland, the assistant secretary general of the Norwegian EV Association.
CNBC flew across the globe to meet with experts, government officials, and locals to find out how the Scandinavian country achieved such a high EV adoption rate.
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