Norway's series of policies to support electric vehicle users

It’s no coincidence that Norway has the highest number of electric cars per capita in the world. Since the 1990s, electric car owners in Norway have been supported by policies such as tax breaks, access to bus lanes and reduced tolls.

According to Forbes, today, nearly 90% of new cars sold in Norway are electric, and by 2032, they are expected to become the most common type of vehicle on the roads here.

The country has achieved a record high of more than 80% of new cars sold in 2023 will be electric, far ahead of other countries. This success comes from a series of incentives, such as VAT exemptions for electric cars, free parking in some areas, and reduced bridge and ferry fares.

These policies make the cost of owning an electric car competitive with a gasoline or diesel car, despite the higher manufacturing costs of electric cars.

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Electric cars are becoming more and more popular.

In addition, the Norwegian government is building a network of charging stations across the country, including remote areas, to eliminate concerns about "travel distance". This is especially important given Norway's cold climate and rugged terrain.

Not to mention, car companies also play an important role in changing perceptions, turning electric cars into trendy icons thanks to their modern design, smart utilities and powerful performance.

Norway’s impressive success in popularizing electric vehicles can only be achieved thanks to supportive policies from the government. This is considered the biggest policy lesson that many countries can refer to to promote electric vehicle consumption, contributing to reducing pollution and “greening” transportation.

It is not yet certain whether Norway will achieve its goal of eliminating the sale of internal combustion engine vehicles by 2025, although it is likely to be very close. But looking at the facts, it can be seen that a combination of government policy, infrastructure investment and changing consumer perceptions are the core factors that will help the country move towards the goal of all new vehicles sold being zero-emission vehicles.

Policy proposals for the transition roadmap to electric vehicles in Vietnam

The Vietnamese electric vehicle market has been sending out positive signals as domestic and foreign brands simultaneously promote the development of product lines as well as the nationwide network of charging stations. In particular, VinFast - a Vietnamese electric vehicle manufacturer has made major breakthroughs in sales, demonstrating the great attraction of electric vehicles in this market.

Dr. Nguyen Son, lecturer in Supply Chain Management and Logistics at RMIT University Vietnam, said that the rise of the “Made in Vietnam” electric vehicle company to the number 1 position in the domestic market reflects a significant change in Vietnamese consumers’ perception of electric vehicles in general.

Furthermore, policies such as free registration and reduced import tax for electric vehicles, and an expanded charging station system also make this vehicle line more attractive to consumers.

However, the transition to electric mobility is a complex process that encompasses a multi-sector ecosystem focused on developing electric public transport including: promoting EV supply and production, incentivizing EV demand, deploying an EV charging network, preparing the electricity sector to adapt to EV charging, and building the necessary skill sets for workers.

To achieve the goals set out in Decision 876 regarding the transition of the road transport sector to electric public transport using electric vehicles, the World Bank (WB) report “Vietnam: Proposals for a national roadmap and action plan for the transition to electric vehicles” also makes a series of recommendations to the Vietnamese Government.

Accordingly, the World Bank believes that an essential first step for the transition is to establish an intergovernmental body to lead and coordinate efforts throughout the transition. The effectiveness of this intergovernmental body will have a decisive impact on optimizing the speed and costs associated with the transition to electric vehicles.

Currently, Vietnam is the second largest market for electric two-wheelers in the world, after China. However, to continue to stimulate demand for this type of electric vehicle, there needs to be a policy to help consumers easily access financial resources, thereby overcoming the gap between purchase price and real value. At the same time, it is necessary to set standards and inspection procedures to address consumer concerns about the safety of electric two-wheelers; implement support policies to accelerate the process of eliminating gasoline-powered two-wheelers in circulation, contributing to freeing up the market for new electric two-wheelers.

For electric cars (passenger cars), an enabling environment needs to be created so that this type of vehicle becomes the preferred choice when most Vietnamese can afford to buy their first car in the next decade. The most important policy intervention is to systematically deploy a network of public charging stations for electric cars.

Therefore, the WB recommends planning a network of public charging stations to optimize efficiency, starting in urban areas and then gradually expanding.

In addition, to reduce the impact of electric vehicle charging on peak consumption of the system, the Government should aim to shift electric vehicle charging to public charging stations during the day (off-peak hours) as much as possible.

However, it is necessary to implement a program to reform electricity tariffs to encourage off-peak charging, expand the scale of smart charging equipment and install rooftop solar power systems at public charging stations to reduce the load on the grid for charging electric vehicles, the WB emphasized.

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