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Home » News » Tax breaks and tough love: how Norway forced a green car revolution

Tax breaks and tough love: how Norway forced a green car revolution

Eighty-eight per cent of new cars sold in the country last year were EVs, data from the Norwegian Road Federation (OFV) shows.

Joe Connor by Joe Connor
January 18, 2025
in News
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Norway is on the brink of becoming the first country to stop selling new petrol and diesel cars. With electric vehicle (EV) sales skyrocketing, it’s clear that the Norwegian love affair with fossil fuels is on life support—and it’s about to be switched off.

Record-Breaking EV Adoption

Last year, EVs accounted for nearly one-third of all cars on Norway’s roads, according to the BBC. New data from the Norwegian Road Federation (OFV) shows:

  • 88% of new car sales in Norway in 2024 were electric
  • In some months, that figure hit 98%—effectively making petrol stations a thing of the past

Contrast that with the UK, where just 20% of new cars registered in 2024 were EVs, and the US at a humble 8%.

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Tax Tactics and Incentives

But how has Norway managed this green revolution? According to Christina Bu, secretary general of the Norwegian EV Association, the secret is a classic “stick and carrot” approach:

“Little by little taxing petrol and diesel engine cars more… while electric cars have been exempted from taxes.”

In other words, if you make polluting cars wickedly expensive, and EVs tax-free, people will do the maths—and choose the silent but swift option.

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The 2025 Deadline Looms

Despite being a big oil and gas producer, Norway wants all new cars sold from 2025 onwards to be “zero emission.” It’s a lofty ambition that once seemed downright impossible. But now, says deputy transport minister Cecilie Knibe Kroglund:

“We are closing in on the target. I think we have already made the transition for passenger cars.”

Considering Norway is already hitting near-100% EV sales some months, it sounds like the rest of the world might soon be asking Norwegians for driving tips (and maybe some of those tax exemptions).

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Tags: Norway
Joe Connor

Joe Connor

Former editor at The London Economic.

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