ZERO-EMISSION VEHICLES NORWAY Overview / Summary of the Initiative
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ZERO-EMISSION VEHICLES NORWAY Overview / summary of the initiative Title: Zero-emission vehicles Country: Norway Thematic area: Transport, Climate Change Objective(s): As part of its National Transport Plan (NTP) for the period 2018-2029,1 the Norwegian Government has set a goal to have 100% of the new passenger cars, urban buses, and light duty vans sold to be zero-emission by 2025. The targets for 2030 are that 100% of the new heavy duty vehicles, 75% of new long-distance buses, and 50% of new trucks sold to be zero-emitting vehicles. Timeline: Policies supporting electric vehicles have been introduced in Norway since the 90s. The plan is for 100% of newly sold vehicles to be zero emission by 2025 for passenger and light duty vehicles while for trucks and heavy duty vehicles the target is set for 2030. Scale of the initiative (resource/budget indication): 110 billion euros (1 064 billion NOK) total funding for the transport system Scope of the initiative As electric vehicles have already been widely adopted and penetrated the Norwegian market as a technology, the initiative is more oriented towards further diffusion and adoption of zero-emission vehicles. Source of funding: Public Granularity of the initiative (initiative, policy approach): Policy Source (webpage) https://www.regjeringen.no/contentassets/7c52fd2938ca42209e4286fe86bb28bd/en- gb/pdfs/stm201620170033000engpdfs.pdf Brief description of the initiative: As part of its National Transport Plan (NTP) for the period 2018-2029,2 the Norwegian Government has set a goal to have 100% of the new passenger cars, urban buses, and light duty vans sold in 2025 to be zero-emission. The targets for 2030 are that 100% of the new heavy duty vehicles, 75% of new long-distance buses, and 50% of new trucks sold should also be zero-emitting. The targets set are part of the strategic targets of the Norwegian Government to reduce greenhouse gas emissions and mitigate the negative environmental effects resulting from the transport sector.3 Other measures target aviation (target of 30% bled-in requirements including biofuel by 2030), railway sector (public procurement of zero-emission solutions where possible), ships, and even traffic infrastructure construction.4 The National Transport Plan is the strategic paper outlining the priority areas and presents the transport goals and strategies in the long run. The document is being revised every four years.5 The National Transport Plan 2018-2029 was presented to the Norwegian Parliament in April 2017, to be effective as of 2018.6 Even though the concrete targets for zero emission vehicles by 2025 have been set in a recent document, Norway has conducted a long and supportive policy for electric vehicles. Norway has adopted generous incentives for electric vehicles, ranging from tax exemptions, elimination of VAT tax, free charging, improved charging infrastructure, free toll roads, etc.7 In 2012, the government decided that strong incentives for zero-emission vehicles will be upheld until 50,000 such green vehicles have registered. The target was reached three years earlier in 2015.8 I: Background, origin, mission and ambition 1 Norwegian Ministry of Transport and Communications (2017), “National Transport Plan 2018–2029”, Meld. St. 33 (2016–2017) Report to the Storting (White Paper – English Summary), available here 2 Norwegian Ministry of Transport and Communications (2017), “National Transport Plan 2018–2029”, Meld. St. 33 (2016–2017) Report to the Storting (White Paper – English Summary), available here 3 Norwegian Ministry of Transport and Communications (2017), “National Transport Plan 2018–2029”, Meld. St. 33 (2016–2017) Report to the Storting (White Paper – English Summary), available here, p 28 4 See also Jeff Cobb (2016), “Norway Aiming For 100-Percent Zero Emission Vehicle Sales By 2025”, hybridCARS, published March 8, 2016, available here: http://www.hybridcars.com/norway-aiming-for-100-percent-zero-emission-vehicle-sales-by-2025/ 5 Norwegian Ministry of Transport and Communications (2017), “National Transport Plan 2018–2029”, Meld. St. 33 (2016–2017) Report to the Storting (White Paper – English Summary), available here, p.10 6 http://www.ntp.dep.no/English 7 Norwegian Ministry of Climate and Environment (2017), “Norway's electric vehicle policies”, presentation by Tom O. Johnsen, Department for Climate Change, Section for Transport and Local Environment, 14.08.2017, Oslo, available at: http://www.mhsr.sk/uploads/files/ocrMJ55J.pdf 8 Peter Zeniewski (2017), “Electric Vehicle Policy in Norway”, ClimateXChange, available at: http://www.climatexchange.org.uk/files/3114/9847/8403/EU_case_studies_Norway_Transport.pdf Ia: Origin The specific target that all new passenger cars and vans and buses sold in 2025 should be zero-emission is a target set by the new National Transport Plan 2018-2029. The Plan was presented to the Norwegian Parliament in April 2017.9 Nonetheless, Norway has so far had one of the most long-lasting and supporting policies for battery electrical vehicles10 and low emission vehicles. In the 1990s, the Norwegian Government introduced incentives to buy electric and hybrid cars. Currently, 51.4% of the newly registered vehicles in Norway are electric or hybrid and at the moment Norway has 11 the most electric cars per capita in the world. Ib: Initiator The supportive measures towards low-emission vehicles has been initiated by the Norwegian Government. The National Transport Plan is mainly prepared by the four transportation agencies in Norway and discussed with local authorities. Ic: Mission and ambition The ambition of the Norwegian Government is for all new vehicles sells to be zero-emission by 2025. The target is part of the goal to reduce environmental impact of transport and a step towards the overall 2050 vision of Norway of “a transport system that is safe, enhances value creation and contributes to a low-carbon society.”12 The targets set by the National Transport Plan (NTP) also contribute towards the goal of a 40% ‘reduction of greenhouse gas emissions by 2030 compared to 1990-levels’.13 This is however just a new update, re-formulation of the Norwegian ambition. Electric and hybrid vehicle owners have 14 benefited from a generous incentive program, including tax reduction, free toll roads, VAT exemption, etc. Id: Decision making process The targets are set by the Government and are easy to measure as they set clear deadlines and percentage goals. The National Transport Plan (NTP) which stipulates the targets for the zero-emission vehicles for 2025, is mainly prepared by four national transport agencies (air traffic, coastal, railway, and public roads). The four agencies were first requested to come up with a joint strategy plan in 1998.15 The NTP is updated every four years.16 The agencies, based on guidelines from the Ministry of Transport and Communication, develop a document, which is then submitted for public discussion with local authorities and major municipalities, business, transport users and organizations for comments.17 The paper is then revised and formed into a White Paper. The White Paper is the 18 document presented to the Parliament and forms the basis for the transport budget. Ie: Linkage to other governance levels The NTP is communicated to country authorities and major municipalities for comments prior to submitting it to the Parliament.19 The document presents the national strategic targets. The overall objective of reducing emissions is a shared goal on EU and international level (Paris Agreement).20 The Norwegian objective of zero-emission vehicles is also in line with the goal presented in the by European Strategy for Low-Emission Mobility.21 If: Geographical scope The NTP and the set targets are nation-wide. Ig: Time span The targets for zero-emission cars and light-duty vans are set for 2025. For heavier-duty vehicles and trucks the timeline for the targets is set for 2030. II: Formation 9 http://www.ntp.dep.no/English 10 Peter Zeniewski (2017), “Electric Vehicle Policy in Norway”, ClimateXChange, available at: http://www.climatexchange.org.uk/files/3114/9847/8403/EU_case_studies_Norway_Transport.pdf 11 R. Hutt (2017), “Half of all new cars in Norway are electric or hybrid”, World Economic Forum, published on 21 Mar 2017, available at: https://www.weforum.org/agenda/2017/03/norway-is-leading-the-charge-towards-electric-vehicles-and-just-hit-another-milestone-along-the-way- d69a8170-cbdc-4d8a-95cd-f9bdf3c8e3ae/ 12 Norwegian Ministry of Transport and Communications (2017), “National Transport Plan 2018–2029”, Meld. St. 33 (2016–2017) Report to the Storting (White Paper – English Summary), available here, p 13 13 Norwegian Ministry of Transport and Communications (2017), “National Transport Plan 2018–2029”, Meld. St. 33 (2016–2017) Report to the Storting (White Paper – English Summary), available here, p 13 14 Norwegian Ministry of Climate and Environment (2017), “Norway's electric vehicle policies”, presentation by Tom O. Johnsen, Department for Climate Change, Section for Transport and Local Environment, 14.08.2017, Oslo, available at: http://www.mhsr.sk/uploads/files/ocrMJ55J.pdf 15 http://www.ntp.dep.no/English 16 Norwegian Ministry of Transport and Communications (2017), “National Transport Plan 2018–2029”, Meld. St. 33 (2016–2017) Report to the Storting (White Paper – English Summary), available here, p.10 17 Norwegian Ministry of Transport and Communications (2017), “National Transport Plan 2018–2029”, Meld. St. 33 (2016–2017) Report to the Storting (White Paper – English