It shouldn’t come as a shock to hear that Scandinavian countries are excelling in the electric transportation market.
In the most northern countries of Europe, we find pioneering work in a wide variety of sectors, from the manufacturing of heavy trucks by household names like Volvo and Scania, to the intricate innovations heralded by startups like Einride and Volta.
The electric vehicle market continues to grow at a staggering rate in Norway and Iceland, while the Scandinavian governments are implementing actionable policies and bringing about change for the good. Elon Musk may hog most of the attention on development in the electric transportation world, but the world is looking to northern Europe for innovation.
Sustainability and the electric vehicle initiative
An increased focus on the planet’s future has made sustainability a vital topic, no matter the industry. Ensuring sustainability is particularly pertinent in the transportation sector, as it has long found itself under the microscope for the depletion of natural resources and staggering levels of pollution since the advent of the internal combustion engine in 1872. Put simply, if you’re not trying to reduce your carbon footprint, you’re no longer relevant.
Many initiatives have sprung up recently as the electric transportation industry looks to ensure its future. Electric vehicles (EVs) have been around in some form since Gustav Trouvé wowed the audience at the 1881 International Electrical Congress in Paris. But the 21st century has seen EVs go from the playthings of the eccentric to the center of the mobility discussion.
Governments worldwide have embraced the move, by putting policies and initiatives in place that aim to increase the number of EVs on the road while reducing fuel-guzzling vehicles. The Electric Vehicles Initiative (EVI) is a multi-government policy forum that focuses entirely on introducing and adopting electric vehicles across the globe. At the time of writing, 15 countries are signed up for the initiative, including economies and cultures as varied as China, India, New Zealand, Japan, the UK, Norway, and Sweden.
Pioneering different transportation sectors
The Nordic countries have long been a hotbed of innovation and invention. The list of inventions from Scandinavia covers everything from zippers to dynamite via the loudspeaker, the seatbelt, and the cheese slicer, showcasing a history of invention that pushes boundaries and creates new standards. So, it makes sense that the Nordics would find themselves at the heart of the electric transportation sector, be it on the road, the rails, the sea, or the sky. The Nordic countries set the tone for electric transportation, and the rest of the world follows suit.
Norway is widely considered to be the world leader when it comes to electric cars. Sweden became the first country to launch a public electric road in 2016, with an EV charging highway that facilitates charging while driving slated for completion in 2022. Swedish startups are also pushing the envelope for the electrification of other forms of transport, from the truck to the ferry, while Norway launched the world’s first electric ferry back in 2015. Many countries now flirt with the electrification of mobility, but none do it with as much enthusiasm and grit as the Nordics.
The EV market in Scandinavia
Such commitment is largely meaningless unless backed up by action, and the Nordic countries embrace this ethos. Norway leads the way on a global scale, and 2020 saw the sale of electric cars overtake those for petrol, diesel, and hybrid engines. Electric vehicles made up 54.3% of all cars sold in Norway last year, a staggering number compared to EV sales just a decade ago when the market share in Norway was barely 1%.
That 54.3% number is hugely impressive, but experts predict the number to increase to a 65% share in 2021 ahead of the Norwegian government’s stated goal of 100% electric car sales by 2025. Many scoffed when that 100% target was first announced, but the aim of selling only zero-emission cars is now within reach. When factoring in new passenger car sales, the percentage of plug-in electric vehicles grows further to 74.8%.
Sweden may not be on the same level as Norway, but it is pulling its weight. New passenger car sales in Sweden for 2020 saw plug-in vehicles hit 32.2%, good for a third globally and covering a third of the national market. This is trending in the right direction, with electric vehicles responsible for 49% of new sales in December of that same year. For comparison, this number was 11% in 2019.
It helps to have a beloved name like Volvo fully on board with the future. The iconic Swedish brand is aiming for 50% of its sales to be fully electric by 2025, simultaneously committing to putting one million electric cars on the road in that same time-frame. The entire automotive industry needs to embrace innovation and sustainability, and the commitment of major brands such as Volvo is imperative.
Iceland might be one of Europe’s smallest countries by population, but the country is an important player in electric transportation. As one of the world’s most urbanized countries, Iceland has proven to be the perfect place for electric vehicles, with almost all trips in the country within the range of modern EVs. New passenger sales of plug-in EVs cornered 45% of the Icelandic market in 2020. All of Iceland’s electricity also comes from renewable sources, making it the ideal playground for testing electric transportation.
Of course, the opportunities created by Norway, Sweden, and Iceland aren’t going to be replicable worldwide, but the adage of using the tools available rings true. With conditions amenable to the electrification of the mobility sector, the Nordics have embraced the concept with open arms.
Electric transportation for shipping, trucks, and more
Electric cars are a step in the right direction for improving sustainability in the transportation industry. But what about other forms of transport? Selling electric cars to individuals is one thing, but convincing companies to embrace electric trucks and ferries? Not quite as simple.
Once again, Scandinavia is at the forefront of a new challenge, with several companies pushing the boundaries and achieving remarkable results. The economies of Norway and Sweden might not be quite as sea-centric as they once were, but that doesn’t mean that shipping has lost its importance. Far from it, efforts are underway to replicate the success of electrification in cars in shipping.
Ampere, the world’s first electric ferry, was launched by a Norwegian company in 2015, while the world’s largest all-electric ferry traveled across the Oslo Fjord in March of 2021. The Bastø Electric has room for some 200 cars (or 24 trucks) and 600 passengers, while the battery and fast-charging systems are provided from a factory in Trondheim, allowing for lightning speed charging while in the dock. Two more all-electric ferries will hit the waves soon, bringing a sustainable approach to Norway’s busiest ferry connection.
The City of Stockholm is piloting electric hydroplane boats for public transport on the waterways of the Swedish capital. Stena Line has also entered the game and is running electric ferries to validate the technology, aiming to introduce fully electric ferries at a larger scale by 2025 at the latest. Stena will be the first major name in the industry to fully commit to electric ferries, allowing passengers and freight vehicles to traverse the sea more sustainably than ever.
Södertälje-based commercial vehicle manufacturer Scania AB has also embraced electric transportation, establishing a growing fleet of electric trucks, buses, and engines. Scania’s battery electric trucks offer 100% zero-emission operation 100% of the time, while Scania specifically designed its electric buses with the requirements of the smart city in mind.
Stena Line and Scania are two of the biggest names in their respective industries. But what about the startups and independent innovators looking to make waves in the electric transportation sector? Enter Einride, the Swedish company founded in Stockholm in 2016, best known for its fully autonomous trucks (known as Einride pods). These aesthetically pleasing and energy-efficient pods don’t require lumbering driver’s cabs.
While the Einride pod was the first driverless electric freight vehicle to operate on a public road globally, the company’s vision is much bigger than cool pods. Its mission is to rewrite the way companies organize and buy transportation using electrification, sharing, and collaboration. Norwegian-Swedish startup Volta is another name causing heads to turn. The company recently announced the unveiling of Volta Zero. This 16-ton electric truck, which will begin production in 2022, could revolutionize inner-city electric transportation.
Electric transportation and government policies
The numbers certainly bode well for the electric transportation industry, but what are the reasons for the ever-increasing figures? What are Scandinavian countries doing that others are not?
The first place to look is government policy. Norway, in particular, has long been building towards a zero-emission future. In the early years of the 21st century, Norway introduced zero purchase tax and simultaneously absorbed the 25% VAT on electric vehicles. This approach was sweetened by a 50% rebate on company car tax along with reduced road taxes, parking fees, and ferry charges. In short, the Norwegian government is stacking the policy odds in favor of electrification, and the results are clear to see.
Sweden isn’t far behind, with a wide range of incentives for drivers of electric vehicles. Among them is a sizeable grant for up to 25% of a new purchase price, along with a company car tax deduction of up to 40%. There are also numerous grants and city-centric incentives such as free charging and subsidies for building charging points.
The Nordic countries have been more aggressive than the rest of the world with the decarbonization of the economy and transitioning to a more sustainable way of living. Discussions about sustainability in transportation and logistics have been going on for a while, but Scandinavia has shown that attacking the issue head-on produces direct results. But progress does not manifest itself through optimism; official policy and government support help make electric transportation happen.
A proliferation of charging points and a commitment to the building of battery factories also helps. With its headquarters in Stockholm, Northvolt AB is building Europe’s largest battery factory in the northern city of Skellefteå and Europe’s biggest factory for energy storage solutions in Gdansk (Poland). Northvolt’s owner has explicitly expressed a desire to “flick a switch for Europe”, and the company is certainly putting its money where its mouth is.
Changing the way we move
There is more to making transportation sustainable than electrification. The use of technology to share vehicles and make logistics more efficient is equally promising in making better use of natural resources. Technology and the world’s connectivity have changed the way we do business, the way we create, the way we interact, and how we learn. So why wouldn’t it change the way we move?
The electric transportation sector is as much about the present as it is about the future. Many nations worldwide should pay attention to how the Nordics are innovating. Education and understanding go hand in hand with sustainability, and no region of the world knows this better than the electric transportation pioneers of Scandinavia.
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