Norway is the first country in the world that EVs recorded 50% market share in 2020
2021.01.13

 

As nations are making more effort to bring environmentally positive changes, the focus of the global automobile industry is shifting rapidly to EVs. This could be observed in the case of Norway, one of the world’s largest oil exporter. Recently, it has been reported that more than 50% of new car sales in Norway last year came from EVs as the country has actively engaged in efforts to reduce CO2 emission.

 

01 | EVs accounted for 54.3% of the new car sales in Norway, surpassing the sale of internal combustion engine vehicles in 2020

 

Norway is one of the countries that set one of the world’s most ambitious targets to reduce its carbon footprint, the main culprit of climate change. Recent reports suggested the sale of EVs in the Norwegian car market overtook that of internal combustion engine vehicles including HEVs (Hybrid electric vehicles) in 2020.

 

Despite being an oil producing country, Norway introduced a plan to phase out fossil fuel vehicles by 2025. Under the plan, the country has encouraged people to buy EVs by providing subsidy and tax incentives. In 2019, the EV market share in the country was 42.4%.

 

A year later, the EV market share in Norway has set a new record. According to Reuters and MarketWatch, on January 5, OFV, the Norwegian Road Federation, said that 76,789 units, i.e. 54.3% out of 141,412 new cars sold in 2020 in the country were EVs. This means Norway became the world’s first country where EVs recorded more than 50% share in the new car market. More over, with HEV sale combined, the sale of EVs made up 83% of the total new car sale last year.

 

Despite dismal sales performance of the auto industry due to COVID-19 pandemic, EVs are recording remarkable growth. On January 8, Inside EVs, the electric vehicle news agency, reported the global EV industry sold 2,544,000 units including PHEVs (Plug-in hybrid electric vehicles) from January to November in 2020, which is about a 30% increase from 1,941,147 units compared to the same period in 2019.

 

02 | Norway plans to reduce CO2 emission 45% by 2030 and triple its carbon tax 

 

On January 8, Automobilwoche, a car specialist media in German, reported that the Norwegian government announced its new plan on climate change. This new plan aims to reduce CO2 emission in Norway by 2030 to the level of 45% compared to 2005.

 

To achieve this 2030 target, the Norwegian government plans to triple taxes on CO2 emission from the oil and the gas industries as well as the transportation, the construction and the agricultural sectors.

 

Norway has imposed taxes on CO2 emission generated from oil and gas production since 1991. The rate of carbon tax in the country will rise from its current 590 Kroner per metric ton of CO2 to 2,000 Kroner by 2030.

 

Under the new plan on climate, the country will regulate CO2 emission allocated to each sector and lower emission limit every year. The new plan will be presented for debate before the Norwegian parliament for approval.

 

Author | Yoon Jinsik
Industry Journalist