In April 2015, Norway reached its goal of bringing 50,000 electric cars onto the streets – three years earlier than planned thanks to a generous scheme of incentives. Today more than 120,000 electric vehicles are driving on Norwegian roads. However, not every incentive works out as it should, so what the European Union can learn from the Scandinavian state?
Europe’s diesel cars received indirect subsidies totalling almost €27 billion last year through lower fuel taxes, a new study has found. Diesel fuel was taxed at, on average, 14 cent less per litre than petrol in 2014, according to Europe’s tax deals for diesel, which was published by T&E last month.
Transport is not the most innovative of sectors so when the top people of Uber, Google, Nokia, Zipcar and BlaBlaCar got together at the International Transport Forum in Leipzig last week, there was an air of excitement. The picture they painted was of a radically different transport system, revolutionized by the internet, mobile phones and autonomous, electric driving. What this could mean for people was captured well by Philippe Crist from the OECD. He estimates the advent of the digital age could reduce the number of cars by an eye-popping 90% in urban areas.
The US state of Oregon is to start an experiment in replacing fuel taxes with a distance-based charge. The experiment could be the start of a US-wide switch to ‘pay-per-mile’ charging, but buyers of fuel-efficient cars say the new scheme discriminates against the investments they have made in cleaner technology, and civil liberties groups say they have concerns about the satellite data that would be collected.
The city council in Gothenburg has decided to keep the city’s congestion charge despite the result of a referendum held last September that called for its abolition. The decision to maintain the charge was taken in order to protect funding for a new rail tunnel under the city centre.
Further decarbonisation of transport through a shift to alternative fuels and electro-mobility forms a major part of the European Commission’s strategy for an ‘energy union’, unveiled last week. With transport being responsible for more than 30% of EU energy consumption and a quarter of emissions, the Commission said legislation on ‘decarbonising the transport sector, including an action plan on alternative fuels’ would be put forward in 2017.
The Commission has said a number of EU member states could be making more and better use of environmental taxation.
Countries with the lowest CO2 emissions from new cars usually have registration and company car taxes which are strongly graduated according to CO2 emissions and have the greatest influence on car buyers’ choices, T&E’s latest How Clean are Europe’s cars report has found.