Eco-Driving Pioneers: Top Countries for Electric Vehicles

As the world shifts towards more sustainable transportation options, electric vehicles (EVs) have gained immense popularity. Governments, businesses, and individuals are increasingly embracing EVs as a means to reduce carbon emissions and combat climate change. In this article, we will explore the best electric vehicle-friendly countries, the Eco-Driving Pioneers, in the world, highlighting their policies, infrastructure, incentives and initiatives that make them leaders in the EV revolution.

• Norway: Pioneering the EV Movement

Norway consistently tops the list as the world’s most EV-friendly country and top of the Eco-Driving Pioneers. Its success can be attributed to a comprehensive package of incentives. Norway offers significant tax breaks, reduced registration fees, and exemptions from tolls and ferry charges for EV owners. Furthermore, the country has an extensive network of charging stations, making it convenient for EV drivers to travel across the nation.

Electric vehicles to population	614:1000
V Market Share	60 %
Cost of EV as %age to maiden salary	86 %
Full charge to maiden salary	0.007
Cost per 100 miles (US$)	0.92

Incentive Type	Description
Purchase Subsidies	n/a
Registration Tax Benefits	BEVs have no registration tax (apart from a wreckage fee of $226).
Ownership Tax Benefits	n/a
Company Tax Benefits	Reduced employer tax related to reduced benefit in kind tax for the driver. Existing, but with a reduced effect.
VAT Benefits	No VAT on the purchase of BEV. Existing incentive, which is expected to be phased out by 2023. The political parties in charge after elections in September 2021 are considering VAT on the purchase price that exceeds $56.40.
Other Financial Benefits	There is an incentive scheme in place to support the acquisition of eLCV. The support is from $940 to $4,720 based on several cost element comparisons with ICE LCVs.
Local Incentives	– Urban toll exemption will be reduced in some cities, but the fee for EVs will not exceed 50% of what ICE cars cost. – The 50% rule also applies for county- and state ferries, road tolls, and public parking.
Infrastructure Incentives	Several local initiatives are supporting the installation of chargers. The support is generally from $470 to $940.

• The Netherlands: A Hub for Electric Mobility

The Netherlands has been a trailblazer in electric mobility. It boasts a robust charging infrastructure, with charging stations readily available in urban areas and along highways. Additionally, the Dutch government offers financial incentives to EV buyers, such as tax reductions and subsidies for purchasing electric vehicles. The country has set ambitious goals to make all new cars emission-free by 2030 and rank top Eco-Driving Pioneers in the world.

Electric vehicles: population	125:1000
EV Market Share	16.5%
Cost of EV as %age to maiden salary	150 %
Full charge to maiden salary	0.018
Cost per 100 miles (US$)	0.020

Incentive Type	Description
Purchase Subsidies	– SEPP subsidy for private persons introduced in 2020: – $2,140 for a full second-hand EV. – $3,574 for a new full EV. – Applicable for private purchase or private lease. – SEBA subsidy for LCV introduced in 2021: – Provides a refund of 10% of the list price excl. tax for new full electric LCVs, with a max of $5,350.
Registration Tax Benefits	– Registration tax based on CO2 emissions. – Zero-emission cars exempt from registration tax. – Low registration tax for PHEVs due to low WLTP CO2 emissions.
Ownership Tax Benefits	– Zero-emission cars exempt from road taxes. – 50% discount on road tax for PHEVs.
Company Tax Benefits	– Additional deduction from corporate and business income taxes for investments in clean technology. – Fringe benefits tax levied on the private use of company cars (22% of the total catalogue value). – Reduced benefit in kind taxation for fully electric vehicles registered in 2022. – 16% benefit in kind taxation for zero-emission hydrogen cars based on the whole purchase price.
VAT Benefits	n/a
Other Financial Benefits	n/a
Local Incentives	n/a
Infrastructure Incentives	– Municipalities provide public charging points free of charge under certain conditions. – National and local initiatives to expand charging infrastructure, aiming for 1.8 million charging points by 2030. – Measures to make energy prices of charging points transparent and comparable. – Investments in hydrogen solutions and filling stations. – Home charge points paid by the employer not considered in fringe benefit on the EV.

• Germany: Accelerating the Transition

Germany, home to some of the world’s most iconic automakers, is rapidly adopting electric vehicles. The government has introduced various incentives to promote EV adoption, including purchase premiums and tax benefits. Germany is investing heavily in expanding its charging network, aiming to have 1 million charging points by 2030. This commitment to infrastructure development is crucial for EV growth.

Electric vehicles: population	36:1000
EV Market Share	3.1 %
Cost of EV as %age to maiden salary	152.61 %
Full charge to maiden salary	0.044
Cost per 100 miles (US$)	0.39

Incentive Type	Description
Purchase Subsidies	– For pure electric cars with a list price below €40,000, the grant increases to $6,420, for hybrids to $4,815. – For pure electric cars with a list price between €40,000 and €65,000, the grant rises to $5,350, for hybrids to $3,997 (list price applies to the base model). – The promotion lasts for a maximum total of 400,000 cars and is extended until 2025. – Due to coalition negotiations of the new government, the framework of “Umweltbonus” is currently under review and might change in 2022.
Registration Tax Benefits	n/a
Ownership Tax Benefits	Exemption for the first ten years for motor vehicle tax.
Company Tax Benefits	– The benefit in kind should be extended until 2030. – For BEV and PHEVs procured from 01/2020 to 12/2030, the monetary advantage should be reduced to 50% of the gross list price. – BEVs with a list price below €40,000 receive an additional reduction to 25% of the gross list price. – For PHEVs, there is the restriction that the car must have a range of 40km, or the CO2-emission is less than 50 g/km. Up to 2022 until 2024, the vehicle must have a range of 60km, and up to 2025, the PHEV must have a range of 80km.
VAT Benefits	n/a
Other Financial Benefits	n/a
Local Incentives	Benefits such as free parking, reserved parking spots, and bus lane usage for BEV. Additional subsidies are possible in federal states and emission-polluted cities and regions, but these subsidies cannot be combined with state subsidies.
Infrastructure Incentives	The Federal Government is providing €300 million towards expanding the charging infrastructure. €200 million is available for rapid public charging infrastructure, and €100 million for regular public charging.

• China: The Global EV Leader

One of the biggest Eco-Driving Pioneers of the world, China is the world’s largest market for electric vehicles, both in terms of production and consumption. The Chinese government has implemented a range of policies, including subsidies and purchase incentives, to encourage EV adoption. China’s focus on research and development has also led to significant advancements in battery technology. With a vast charging network and a growing number of EV models, China continues to lead the global EV revolution.

Electric vehicles: population	24:1000
EV Market Share	5  %
Cost of EV as %age to maiden salary	152.61 %
Full charge to maiden salary	0.049
Cost per 100 miles (US$)	0.79

• Sweden: Setting Ambitious Targets

Sweden has set ambitious goals to become fossil fuel-free by 2030. The country offers generous incentives for EV buyers, including tax exemptions, reduced road taxes, and access to carpool lanes. Sweden is investing in charging infrastructure, with the aim of making charging stations easily accessible throughout the country. The government’s commitment to sustainability aligns with the growing popularity of electric vehicles.

Electric vehicles: population	116:1000
EV Market Share	13 %
Cost of EV as %age to maiden salary	131 %
Full charge to maiden salary	0.013
Cost per 100 miles (US$)	0.18

Incentive Type	Description
Purchase Subsidies	– Climate bonus ranging up to $7,490 for BEV. – For PHEV, there is a maximum of $4,815, with a linear decrease from $4,815 to $1,075 as CO2 increases from 0 to 60 g.
Registration Tax Benefits	n/a
Ownership Tax Benefits	– SEK 360 road tax for vehicles with up to 90 g CO2 (WLTP). – Diesel-PHEV get a small tax addition due to diesel engine. – Increased road tax (malus) for petrol and diesel vehicles.
Company Tax Benefits	– Road tax is part of the Benefit-in-kind calculation. SEK 360 for EV/PHEV instead of malus tax for ICE vehicles (see above). – Lower benefit value results in lower employer taxes.
VAT Benefits	n/a
Other Financial Benefits	n/a
Local Incentives	– As of 2020, municipalities can exempt vehicles with high emissions from specific areas. Only pre-EU5 vehicles so far are denied from certain streets in Stockholm.
Infrastructure Incentives	Support for home installations: – 50% reduction for labor and material cost per charge point. Only applicable for the property owner where the charge point is installed. Support for office installations: – Max. 50% reduction of the cost per charge point, up to $1,610. Support for public charging: – Max. 50% reduction of the investment.

• United Kingdom: Charging Ahead

The United Kingdom has made substantial progress in promoting EV adoption. The government has banned the sale of new petrol and diesel cars by 2030, accelerating the shift toward electric vehicles. The UK offers grants to EV buyers and is actively expanding its charging infrastructure. Efforts like these are positioning the UK as a leader in the global as Eco-Driving Pioneers.

Electric vehicles: population	39:1000
EV Market Share	3.5  %
Cost of EV as %age to maiden salary	170.46 %
Full charge to maiden salary	0.032
Cost per 100 miles (US$)	0.27

Incentive Type	Description
Purchase Subsidies	– The maximum subsidy for cars was reduced to $2,675. Cars valued at more than $37,450 are no longer eligible for the subsidy. – Small Vans <2.5T & travel at least 60 miles with Zero Emissions = 35% of the purchase price up to $3,210. – Large Vans <2.5T to 3.5T & travel at least 60 miles with Zero Emissions = 35% of the purchase price up to $6,420.
Registration Tax Benefits	Zero-emission vehicles pay no registration tax. The luxury charge no longer includes EV.
Ownership Tax Benefits	Zero-emission vehicles pay no ownership tax. The charge for high-value vehicles has been removed, so all EVs are now exempt.
Company Tax Benefits	– Tax on BIK is currently 0% and will rise to 1% in 2021/22 and 2% from 2022/23 until at least 2024/25. A Further year is expected to be announced in February 2022.
VAT Benefits	Domestic electricity attracts a reduced VAT rate, only 5% rather than 20% applicable elsewhere. The regulator and UKGOV are looking at abolishing VAT on home energy entirely as part of the 250% energy CAP review in March 2022. NOTE – If the CAP is removed, the 5% VAT reduction will be meaningless.
Other Financial Benefits	– Ultra-low emission vehicles (up to 75 g/km CO2) are carved out of optional-remuneration arrangement regulations, allowing company car drivers in a salary sacrifice scheme to contribute to their vehicle costs using gross salary, pre-tax, and National Insurance (NI). – Expected changes in road user pricing, infrastructure regulation, tariff control, and rules on interoperability, approved energy rate, etc.
Local Incentives	– Currently, EVs and most PHEVs get a 100% “cleaner vehicle discount” in the London Congestion Charge zone. From 25 October 2021, the discount will only be available for zero-emission vehicles. It will continue on this basis until 25 December 2025. – Residents living in the expanded zone are no longer exempt. – A new green license plate is now available, making it easier for local authorities to provide incentives such as reduced parking fees or the use of bus lanes.

Infrastructure Incentives

– The “Electric vehicle home charge scheme” (EVHS) and “Workplace charging scheme” (WCS) continue to offer a grant for the installation of charge points. This was reduced from $535 to $375 from 01 April 2020. – The scheme will close on 31 March 2022 and is based on installs, not applications. – The incentive will switch to “support renters, landlords, and hoteliers.” Scheme also remains for commercial property for up to 20 charge points. – The ORCS scheme, under which local councils get a grant to install charge points in areas with on-street parking, continues, with the grant reduced from $9,000 to $8,045 from 01 April 2020. This looks set to continue, albeit no further announcement has been provided. – All-new build homes must have charge points installed from 2022.

Conclusion

The transition to electric vehicles is a global imperative to combat climate change and reduce air pollution. The countries mentioned above are at the forefront of this transition and Eco-Driving Pioneers , with their policies, incentives, and infrastructure developments creating a conducive environment for EV adoption. As the world moves toward a more sustainable future, these nations serve as examples of how governments can lead the way in fostering electric vehicle-friendly environments.

The information in article has been obtained from EV Readiness Index 2022 that has been published in website https://evmarketsreports.com/