More than 97 percent of the new cars Norwegians registered in November 2025 were electric, almost reaching the country’s goal of 100 percent. As a result, the government has begun removing some of the many carrots it used to encourage its successful EV transition. Cecilie Knibe Kroglund, state secretary in the country’s Ministry of Transport, reveals some of the challenges that come with success.
What were the important early steps to promote the EV switch?
Kroglund: Battery-electric vehicles have had exemptions from the 25 percent value-added tax and from the CO2– and weight-based registration tax that apply to combustion-engine vehicles. We used other tax incentives to encourage building charging stations on highways and in rural areas. Cities had the opportunity to exempt zero-emissions cars from toll roads. EV drivers also got reduced ferry fares, free parking, and access to bus lanes in many cities. The technology for the vehicles wasn’t that good at the start of the incentives program, but we had the taxes and incentives to make traditional passenger cars more expensive.
What were the biggest barriers, and how did policymakers overcome them?
Kroglund: Early on the technology was challenging. In summertime it was easy to fuel the EV, but in wintertime it’s double the use of energy. But the technology has improved a lot in the last five years.
The Norwegian tax exemptions on EVs were introduced before EVs came to market and were decisive in offsetting the early disadvantages of EVs compared to conventional cars, especially regarding comfort, vehicle size, and range. The rapid expansion of charging infrastructure along major corridors has also been important to overcome range anxiety.
How have private companies responded to government incentives?
Kroglund: I’m personally surprised that it went so well. This was a long-term commitment from the government, and the market has responded to that. Many Norwegian companies use EVs. The market for charging infrastructure is considered commercially viable and no longer needs financial support. However, we don’t see commercial-vehicle adoption going as fast as passenger vehicles, and we had the same goal. So we will have to review the goals, and we’ll have to review the incentives.
What unexpected new problems is Norway’s success creating?
Kroglund: The success of the passenger-vehicle policies mean EVs are in competition with public transport in the larger cities. Driving an EV remains much cheaper than driving a conventional car even without tax exemptions, and overall car use continues to rise. National, regional, and local governments must find different tools to promote walking, bicycling, and public transport because each city and region is different.
How applicable are these lessons to poorer or less well-administered countries and why?
Kroglund: We are different as countries. The geographies are different, and some countries have even bigger cities than our national population. This is not a policy for L.A., but what we see in Norway is that incentives work. However, tax incentives are only applicable in systems where effective taxation is established, which may not be the case in poorer countries. Other benefits, such as lower local emissions, only apply in places with lots of traffic.
The Norwegian experience shows that the economic incentives work, but it also shows that EVs work even in a country with cold weather.
This article appears in the February 2026 print issue as “Cecilie Knibe Kroglund.”
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