Since November 1, 2024, only 100% electric taxis are allowed to operate in Oslo. The city is imposing this strict new regulation to reduce emissions in urban areas, a change which places Oslo at the forefront of the world's ecological capitals… but which also involves numerous purchasing aids.
Polestar 2 ©Polestar
A transition in 4 years
Oslo's decision to ban all combustion engine taxis was announced in September 2020, providing a four-year transition period to allow drivers to comply with the new rules. However, these regulations remain flexible for trips that go outside the city limits.
Despite requests from sector players to postpone this obligation until 2027, citing insufficient charging infrastructure, the municipal council maintained the deadline at November 1, 2024. Today, regulations require that all taxis operating at Oslo are emissions-free, a first in Europe for a capital of this size.
Novège, still leader in the electric market
Norway is already well advanced in the adoption of electric cars. By 2023, the penetration rate of fully electric cars in the taxi sector reached 88% nationally, slightly above the overall national rate of new electric car registrations of 82.4%.
In some cities, this figure is even higher: in Bergen and Stavanger, all new taxis registered in 2023 were electric. In Trondheim, 97% of new taxis were also electric, and in Oslo this figure reached 90%.
A transition that did not happen without massive aid and incentives
Other major global cities are turning to similar policies: Shanghai plans to electrify its bus and taxi fleets by 2027. In Europe, cities like Athens or London are encouraging the transition to electric taxis through subsidies, but without a strict ban on combustion engines.
For the moment, this Norwegian initiative remains unique: Oslo is the first major European city to completely ban combustion engine taxis.
However, in Norway, the purchase of electric vehicles is supported by a set of financial and tax benefits, which make the country one of the world leaders in terms of the transition to electromobility. First of all, electric cars are completely VAT free, allowing buyers to save 25% on the purchase price, and pay no registration tax, a saving that can amount to up to 90,000 crowns. (around €8,500) depending on the thermal model in comparison.
To further encourage this transition, Norway offers free or reduced tolls on many roads for electric cars and free or discounted parking spaces in most major cities, including Oslo.
Electric car drivers also benefit from access to lanes reserved for buses and taxis, to reduce their travel time in the city.
In addition, the country has invested massively in a network of public charging stations, free or at reduced rates. Finally, companies that invest in electric fleets benefit from tax deductions, particularly on leasing costs and the taxable value of company vehicles.
The Norwegian paradox
Finally, let us remember that there is a form of Norwegian paradox: although it is among the leading countries in terms of transition to electric mobility and renewable energies, Norway is one of the largest exporters of oil and gas in the world. This massive financing of electric cars and their infrastructure was made possible largely thanks to the country's oil revenues.
The Norwegian sovereign wealth fund, also known as the Oil Fund, is funded by tax revenues from oil and gas exploitation. This fund is one of the largest in the world, with assets exceeding $1 trillion, and serves not only to ensure Norway's future economic stability, but also to finance green initiatives, including subsidies and infrastructure for electric vehicles. As a result, although the country is committed to a green transition internally, it continues to depend on its hydrocarbon exports to finance this transition.
