January 27, 2023

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If we want to manage this through 2025, we must do these six things

In December, there was a huge electric car boom in Norway. Car dealers are reporting crazy conditions and doing well on New Year’s Eve.

After more than two decades of tax exemption, now is the last chance to get an electric car without VAT and weight tax.

The result was an increase in new car registrations in the last month of the year.

For those of us working to reduce climate emissions and therefore want to replace the entire fleet of fossil cars with electric cars, it’s been a good year for cars. 79.3 percent of new car sales were electric vehicles, and all of the top ten best-selling car models were actually electric vehicles.

Photo: Ole Enes Ebbesen/TV 2

There is something to show the world while conveying that the majority in cold Finnmark are now choosing to buy an electric car.

But what will be the continuity?

The Electric Vehicle Association believes that the reduction in the benefits of the electric car that was approved in the state budget for 2023 happened very quickly, was very broad, and also came suddenly.

Electric Vehicle Association alarmed by ‘Tesla tax’

It’s a game of luck with one of Norway’s biggest climate policy successes.

But the government wanted to seize this opportunity, and now there is every reason to ask the question: will we reach 2025 – the year set by the German parliament as the goal in which all new cars sold should be zero-emission?

Electric vehicles should be over 90 percent in 2023

The Electric Vehicle Association believes that we will not reach the 2025 goal with today’s politics. In 2023, we must have more than 90 percent of electric vehicle sales in new vehicle sales to be on track for zero emissions in 2025. And in 2024, sales must exceed 95 percent if we have a chance of hitting the target. In 2025. For that to happen, there needs to be a more rigorous use of means. Our advice to politicians:

1. Implement procedures to ensure that electric cars win the lease.
Too many cars are rented in Norway either to individuals or companies. Electric cars compete less in leasing because lease-emission cars have unreasonably favorable terms in VAT regulations.

2. Adapting taxes on company cars to the electric current.
The preferential taxation of company cars that are also used is specially adapted to the fossil fuel past, and should be changed so that fossil fuel cars do not win because of the unreasonable arrangement of the regulations.

3. Strengthening the environmental image of the new car purchase tax.
The gradual introduction of value-added tax on electric vehicles will be very demanding in the coming years, and it is also unfortunate that a separate weight tax should be imposed on electric vehicles. On the other hand, the environmental features of the traditional one-time tax on polluting cars should be tightened. There’s no reason why plug-in hybrids should have a discount in the weight component, and the CO2 component should be tightened up year after year.

 Photo: Silje Olderkjær/TV 2

Photo: Silje Olderkjær/TV 2

4. Enhance the competitiveness of electric trucks.
The proportion of electric trucks is far from the targets, and more rigorous use of means is needed. There should be a national exemption for electric trucks at barriers. The environmental profile of the one-time tax on trucks that pollute annually should be tightened, and the CO2 rates in the tax should eventually become the same as for passenger cars. Support for Enova electric vehicles should be increased.

5. Guaranteed environmentally effective fee rebate.
The national rule says electric cars must now pay a maximum of 70 percent of polluting cars, but within the law municipalities and counties can give an environmental deduction greater than that to ensure a faster transition to electric cars.

6. Follow up the national shipping strategy.
The government has notified requirements for card payment capability on new fast chargers from 2023, and that a deadline must be set for retrofitting existing machines. This should be done as soon as possible. In addition, it is important that the terms of the framework ensure the continued high development of rapid charging devices for passenger cars and that municipalities offer good street charging for those who cannot charge at home. The development of heavy transport freight infrastructure should begin.

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