Jul 16, 2021

Benchmarking Sustainability with Norway

Norway
ESG
Sustainability
electricvehicles
2 min
We benchmark sustainability with Norway and take a look at how they're leading the charge in the move to electric vehicles

Norway is consistently recognized as one, if not the most sustainable country in the world, in tight competition with its nordic neighbours. We thought it worthwhile to take a moment to celebrate their achievements and make note of their efforts, and their strategies.

Norway has some aggressive climate targets. While the European Union aims to be climate neutral by 2050, Norway aims to be carbon neutral as early as 2030. To reach its targets and reduce emissions in the country’s most polluted areas—  areas where the oil and gas industry operates— Norway has launched a strategy to accelerate carbon emissions reduction and carbon offsetting (making up for emissions made elsewhere).

The country holds steadfast to its commitment to renewable energy. According to the International Hydropower Association, more than 95% of the country's energy comes from hydropower energy, with the small remainder made up of thermal and, only recently, wind.

Norway is also looking to ban the sale of fossil-fuel-powered cars, all vehicles in circulation must be powered by green energy by 2025.

Leading the Transition to EV’s

Norway believes that a population transitions too slowly to be left to its own accord. To help pick up the pace on sustainability initiatives, change needs to be incentivised. To help propel the move to renewables and motivate its citizens, Norway implemented a national policy that subsidizes costs of Electric Vehicles (EVs) through the reduction of additional costs such as VAT and CO2 taxes.

The country, which holds a population of about 5 million, now leads the world in the uptake of EVs, representing 60% of cars being sold.

For Norway, the philosophy of its four new battery factories of looking at sustainability as a growth opportunity where money can be made and jobs can be found has led to just that. 

According to investment bank UBS, by 2030 new EVs are expected to represent 40% of all new cars.

Take a look at RobecoSAM Country Sustainability Ranking to see how the rest of the world is doing.

 

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