Norway plans to push back all-electric van deadline to 2027

Norway is revising its climate targets for vans, with a proposed delay of the deadline for all new van sales to be zero-emission from 2025 to 2027. The shift seems necessary as adoption moves much slower than the high sales penetration of battery-electric cars. Even in zero-emission Walhalla, vans stick to burning fossil fuels.

The Norwegian Environmental Protection Agency and the National Public Roads Administration spearhead the shift. Also the famous Norsk Elbilforening, Norway’s electric vehicle association, had previously advocated for a revised target, citing insufficient progress toward the 2025 goal.

Still in the lead

Only 29% of new vans sold last year in Norway were electric, compared to a striking 82% of passenger car sales. Meanwhile, the latter has climbed to roughly 95% monthly this year. Still, on a European level, Norway is the leading country in decarbonizing its van fleet (139 g/km CO on average)—though its advantage is much less significant.

Vans, which constitute approximately 15% of the country’s total vehicle fleet, account for nearly 27% of its road transport emissions. The Environmental Protection Agency and Roads Administration have concluded a report.

They are endorsing new measures to accelerate the transition, including tax benefits for electric van owners, infrastructure support, and incentives for businesses to switch to zero-emission options.

The report highlights a combination of barriers that have hindered progress toward the 2025 all-electric target for vans – like in many other European markets. Technological limitations, high upfront costs, limited access to charging infrastructure, and concerns about time lost to charging have all contributed to the slow adoption.

According to Ingrid Dahl Hovland, Norway’s Road Director, while the 2025 goal for passenger EV sales is within reach, the van sector faces additional challenges that make a swift policy response crucial.

No toll versus double toll

Norway’s proposed policies to encourage the transition to electric vans include several targeted incentives and regulatory changes. First, registration fees for fossil-fuel-powered vans will be increased, gradually aligning with those for passenger vehicles by 2027.

Additionally, the current VAT deductions available for fossil-fuel vans will be removed. In contrast, electric vans will benefit from a VAT exemption, effectively lowering the purchase barrier for businesses considering an electric option.

Electric vans will also receive exemptions from tolls and ferry fees until 2030, while fossil-fuel-powered vans will face double tolls beginning in 2027. Furthermore, electric vans will be allowed access to bus lanes, supporting more efficient routes for commercial operations. The proposal is up for ratification by the Norwegian government.

Stable and effective policies

Norsk Elbilforening’s general secretary, Christina Bu, emphasized the importance of clear and compelling incentives for companies to adopt electric vans. “There must be clear benefits to going electric for companies to invest in new technology confidently,” Bu said, underscoring the need for stable and effective policies to ensure a smooth transition.

The report’s analysis shows that electric vans are generally more costly at the point of purchase, but they often prove economically viable over their lifetime due to lower operating expenses. However, business decisions remain complex, with many companies emphasizing initial purchase costs.