Norway May Scale Back EV Perks to Boost Public Transport

(Bloomberg) -- Norway is considering paring back some of the incentives that made it the leading nation in electric car sales in a bid to boost public transport usage.

The government has asked the public roads administration to give its view on a proposal to reduce the benefits of using an electric car in and near urban areas, such as reduced road tolls, driving in bus lanes and parking benefits, according to a statement on Thursday. While such perks have already been gradually scaled back in last couple of years, EV owners still enjoy clear advantages over those with fossil fuel cars.

“Electric cars give us greener transport, but they also have a clear intermodal competition with public transport in urban areas,” Transport Minister Jon-Ivar Nygard said in the statement. “We must make it more attractive to travel by public transport, cycle and walk.”

Public transport took a hit during the pandemic as movement was restricted and working from home became the norm for many. While car traffic in urban areas is back at and slightly above the 2019 level, there are still fewer using public transport than before the Covid-19 crisis.

Norway's high uptake is a result of a slew of incentives, including reduced taxes on new purchases, aimed at reaching a target that all new cars sold in 2025 are zero-emission vehicles. In 2020, the Nordic nation became the first country in the world to see electric cars overtake fossil models among new vehicles.

Read More: EV Sales Hit Record in Norway With Fossil Engines Soon Gone

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