There have been many false dawns for the electric car. France and the UK were among the pioneers of electric vehicles in the late 19th century, with well-heeled customers using them for short trips around cities. By the early 1900s, however, the discovery of abundant oil reserves and larger road networks had helped to undermine the case for electric in favour of petrol.

Today, more than a century later, polluting diesel and petrol cars still dominate sales globally but there are encouraging signs that 2021 could prove the start of a lasting electric future. Norway, a nation whose wealth is based on fossil fuels, last year became the first country in the world where the sale of electric cars overtook those powered by petrol, diesel and hybrid engines. Electric vehicles made up just over 54 per cent of all new cars sold in the country in 2020, a global record, and up from a mere 1 per cent of the overall market a decade ago. It still has some way to go but Norway looks on course to meet a government target, set in 2016, of banning sales of all internal combustion engine vehicles by 2025. 

As policymakers look to rebuild their economies after the coronavirus pandemic, Norway’s success in promoting the uptake of EVs provides an important lesson in how targeted policies can help to change consumer behaviour and spur private-sector investment. Early and generous government support as far back as 1990 in the form of a temporary exemption from the country’s vehicle purchase tax proved an important first step.