Norway an EV role model? Their pathway is expensive and paid for with oil & gas exports. Norway is an EV leader thanks to a generous pot of tax incentives. Today, battery-electric cars make up more than half of all new car sales in Norway. Schalk Cloete takes a detailed look at what those incentives cost, and how many tonnes of CO2 they avoid. In short, Norway – a major oil and gas exporter – needs to sell over 100 barrels of oil (which emits 40 tonnes of CO2) to pay for the tax breaks it gives EVs to avoid one tonne of CO2. And Norway’s electricity is almost completely clean thanks to hydro power, so the CO2 avoidance costs will be higher in other countries. In other words, most countries cannot take this pathway to achieve EV dominance. It’s very expensive, and paying for it – certainly in Norway’s case – emits large amounts of carbon. Cloete is therefore very critical of some of the hype around EV targets. He wants to see the emphasis shift to behaviour change that reduces car use. And instead of being an EV leader, Norway should consider being a leader in turning oil and gas into low-carbon fuels.
Energy Post 4th June 2021 read more »