Norwegian electromobility policy for 2020
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1 Norwegian electromobility policy for 2020 Per-André Torper Norwegian Ministry of Transport and Communications Oslo, June 11 th 2015
2 Sold cars in May Volkswagen Golf Tesla Model S Toyota Auris Toyota Rav Skoda Octavia Toyota Yaris Nissan Leaf Mitsubishi Outlander Volkswagen Passat Mazda CX Source: OFV 2
3 EVs in Norway EVs: (may 2015) 18 per cent of new cars sold in ,5 per cent of passenger car fleet PEVs: 4000 (april 2015) 3
4 Background Transport sector accounts for approx. 1/4 of Norway s GHG-emissions Two broad political agreements on climate in the Norwegian Parliament (2008 and 2012) The 2012-agreement protected existing taxincentives until 2018, or until EVs reached Goal from climate agreement: 85 gram CO2/km in 2020 from new cars 4
5 Tax exemptions for EVs No purchase tax (EUR for conventional cars) No VAT (25% for conv. cars) Reduced annual vehicle license fee (EUR 50 per year vs. 400) Imposed benefit taxation for private use of a company car halved compared to conventional cars (EUR per year) 5
6 NOK Purchase tax-exemption for EVs 8 NOK = 1 EUR , Weight Power CO Tesla Model S Performance Tesla Model S Performance Nissan Leaf Nissan Leaf Hypothetical tax: EUR Hypothetical tax: EUR 400 6
7 In addition, electric vehicles have Free parking (EUR 25/day in Oslo) No road toll (EUR 4/day in Oslo) Free ferry (from EUR 10/trip) Access to public transport lanes Higher compensation for use in work (about 10%) 7
8 Charging stations Charging stations: 1700 Charging points: 6400, of which 5600 are publicly available A large share has received government support In addition many municipalities provide financial support for charging stations 8
9 Number Electric cars sold in Norway No purchase tax 6000 Free parking Transnova established 4000 No road toll Access to public transport lane Free ferry No VAT or other taxes 2000 Half tax for using electric car as a bussines car Year 9
10 Effect of the policy Some arguments in the debate: Reduced CO2-emissions (personal cars sold in May 2015: 99 g/co2/km -average) Reduced NOx-emissions Development of technology for the low emissions society Switch from public transport, cycling and walking to EV, increased traffic Delays for public transport and using space in the cities Income loss to the state, municipalities and road toll companies 10
11 Income loss 2015 Free Parking 15 Tolls/ferry 30 Mill Annual tax 20 VAT 200 Purchase tax 200 Sum Norske elbil-insentiver
12 Future policy - taxes Number of EVs passed april this year New political agreement in 2015: No VAT on leasing of electric cars Tax incentives to kept until 2018, and thereafter gradually reduced Annual tax introduced with half rate from 2018, and full rate from 2020 Purchase tax exemption prolonged to Change from no VAT to a system with a grant scheme? 12
13 Future policy local benefits New political agreement in 2015 (2): Local municipalities will have central influence over the access to public transport lanes". Local municipalities decides free parking etc Looking at environmental effect of a system with differenced taxes in the toll rings and on the ferrys. 13
14 Public transport lanes Public transport lanes are starting to fill up (with EVs), and delays the public transport Due to construction work in the tunnels in Oslo Electric vehicles need a passenger to use the bus lanes Result: Busses use half time 14
15 Summary policy towards 2020 Slow reduction in benefits Other new instruments? More local influence 15
16 Thank you for your attention!
17
18 1 8 NOK CO2-element in purchase tax CO2 (g/km) 18
19 Main instrument: Purchase tax High level (on average EUR /car) Four components: Weight CO2-emissions Power (kw) NOx-emissions All elements are progressive In addition, cars with very low CO2-emissions (<105 g/km) get a deduction in the tax levied on weight and power ( NOK per g CO2) 19
20 CO2 (g/km) Average CO2-emissions of new cars Year 20
21 PHEV Plug-in hybrids do not have the same benefits as pure electric vehicles. They pay full VAT, are not allowed in bus lanes etc., and do not have EL number plates. However, they do get a deduction of 26 per cent in the weight component of the purchase tax, and the power associated with the electric motor is not included in the basis for the engine power component in the purchase tax. 21
22 RED 4,5 per cent renewable energy share in transport in 2013 Biofuels essential for reaching 2020 target The Parliament has decided to increase biofuel sales requirement from 3,5 to 5 per cent 22
23 Thank you!
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