Norway has the highest adoption rate for electric vehicles in the world. According to the Norwegian Road Association (OFV), electric vehicles accounted for about 82% of new car sales in Norway in 2023. By comparison, Kelley Blue Book estimates that 7.6% of new vehicle sales in the U.S. last year were electric. Electric vehicles accounted for 24% of new car sales in the world's largest automobile market, China, in 2023, according to the China Passenger Car Association.
“Our goal is that all new cars will be zero-emission vehicles by 2025,” said Ragnhild Syrstad, the state secretary of the Norwegian Ministry of Climate and Environment. “We believe we will achieve this goal.”
The Norwegian government began incentivizing the purchase of electric vehicles back in the 1990s by providing free parking, use of bus lanes, no tolls and, most importantly, no taxes on zero-emission vehicles. But it wasn't until Tesla and other EV models hit the market about a decade ago that sales began to increase, Syrstad said.
Norway's capital Oslo is also electrifying its ferries, buses, semi-trailers and even construction equipment. Gas pumps and parking meters are being replaced by chargers. It is an electric utopia of the future. The Norwegian electricity grid has so far been able to cope with the influx of electric vehicles due to its wealth of hydropower.
“Electric cars cost maybe a third of the price of gasoline because we have almost 100% hydropower.
CNBC flew around the globe to meet with experts, government officials and locals to find out how the Scandinavian country was able to achieve such a high electric vehicle adoption rate.
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