Australia should follow Norway’s lead on EVs

Australia’s failure in offering incentives for electric cars will allow other countries to dominate the industry

Norway is now on track to stop selling diesel and petrol cars by April 2022, according to the Norwegian Automobile Federation (NAF), and the change over is being driven by government incentives.

According to the NFA, government tax incentives initially drove the rise in uptake of electric vehicles, which was quickly embraced by manufacturers in response.

In Victoria the State Government introduced 2.5c per a kilometre road-user tax, amounting to $375 a year based on the average distance traveled for drivers.

While the Andrews government argues that electric vehicles avoid fuel taxes that pay for roads, critics say that the government should be driving uptake in electric vehicles instead of introducing new taxes.

25 organisations and businesses – including Uber, Volkswagen and Hyundai – published a full page advertisement in The Age labeling the move:

“The worst electric vehicle policy in the world”.

Victoria and other states have introduced some subsidies to encourage the uptake of electric vehicles, however counter measures such as the road-user tax sets the state back.

Norway has exempted electric vehicles from all road taxes, and has successfully driven the prices down on electric vehicles to make them an attractive option for citizens.

A 20% carbon tax and other pollution taxes have encourages businesses to embrace electric vehicles as well.

Embracing electric vehicles will also open other avenues for expanded industry.

The Clean Energy Councils 2020 report says that private investment into renewable energy is continuing to grow.

“Electricity Infrastructure Roadmap that will deliver 12 GW of new transmission capacity and attract up to $32 billion in private investment.” the report says.

If Australia continues to ignore incentives for EVs, they risk missing out on an industry that is projected to reach a market of $802.81 billion by 2027.