Mobility Basic Figures

According to latest Norwegian statistical bureau figures at the end of 2009 about 2,241,000 cars and more than 387,500 vans were registered. This is an increase since 2008 of about 2 percent for passenger cars and 2.2 percent for vans. The average age of registered cars has grown slightly; for passenger cars it was of 10.4 years at the end of 2009 compared with 10,3 a year earlier. In sum 541 cars exist per 1,000 inhabitants. The road transport was responsible for one fifth of the entire greenhouse gas emissions of the country. Following statistics can be shown for the market penetration of clean vehicles in September 2007:

According to table the overall market penetration was less than 0,1% in total, with 0,07% for passenger cars, 0,5% for Busses, and 0,03% for light and heavy good vehicles. Following the Norwegian environmental organisation ZERO in 2008 there were approximately 200 Norwegian vehicles approved to run on ethanol in the form of E85, while a minimum of 20,000 cars are factory authorized for biodiesel. About 30,000 heavy diesel vehicles are also factory authorized for bio diesel. According to the European research project BEST a review described that in 2008 452 cars capable to run with E85 Flexifuel were sold in Norway. According to figures from April 2011 there are 3,392 electric vehicles on Norwegian roads (see www.gronnbil.no/elbilkartet). This figure lifts the country on the European top position with regard to vehicles per capita. This is due to a strong incentive scheme for electro vehicles that has been in place since the year 2000. Some of the worldwide pioneers and most important producers (i.e. ElBil Norge AS with a current annual production capacity of 4,380 units as well as Think Global AS) of e-cars are from Norway. These companies are still very much active i.e. having a leading share in the Pan-European E3 Car research Consortium.

The use of biofuels (biodiesel and bioethanol) in Norway is currently very modest compared with, for example, Sweden and many other European countries. The use of gas for transport purposes is also very modest. Hydrogen as energy carrier for transportation purposes must be currently characterized as in research, demonstration or development stage.

In May 2009 the HyNor Partnership and StatoilHydro announced the official opening of the Norwegian hydrogen highway which is a hydrogen transportation infrastructure along the nearly 600 kilometre route between Oslo and Stavanger. The first hydrogen station was opened at Forus in Stavanger in 2006, the second in Porsgrunn in 2007, and currently two new stations are opened in Oslo and Lier. HyNor has some 50 partners and manages a fleet of more than 50 hydrogen vehicles made by Mazda, Toyota and Think. HyNor has currently acquired 14 refitted Toyota Prius hydrogen vehicles and 4 Mazda RX8. In 2011 many additional hydrogen vehicles will hit Norwegian roads: 10 Mercedes B-class fuel cell vehicles, 5 Th!nk hydrogen cars, and 2 Alfa Romeo MiTo fuel cell vehicles. The arrival of the vehicles is due to the Norwegian involvement in the EU project H2-moves Scandinavia. The Oslo node is currently working toward acquiring 5 fuel cell buses to the HyNor project within 2011.

Norway is one of the countries worldwide which foster a change in the vehicle technology during the recent years also by introducing alternative ideas. I.e. in 2007 the government of Norway banned the use of the phrases clean, green, and environmentally friendly from all car ads and commercials. Following the inherent logic of this regulation, cars generally cannot do anything good for the environment except less damage than others. Furthermore, governmental representatives still promote the idea to ban all gasoline-only cars. Citing Brazil's success with bioethanol as their rationale, Norwegian lawmakers are considering ditching petrol-only machines completely, in favour of biofuel-powered transportation. Again the idea is to pressure the automobile industry into developing technology faster than it otherwise would. A most recent proposal is to ban sales of new gasoline-powered cars in Norway from 2015.

The project Grønn Bil (“Green Car”) was set up by the association of Norwegian energy companies to facilitate the introduction of 200,000 electric vehicles and plug-in hybrid electric vehicle on Norwegian roads by 2020. Additionally, Transnova, a subdivision of the Norwegian Ministry of Transportation, as well as the association of Norwegian Municipalities are in the steering committee of the project.

The project Grønn Bil (“Green Car”) was set up by the association of Norwegian energy companies to facilitate the introduction of 200,000 electric vehicles and plug-in hybrid electric vehicle on Norwegian roads by 2020. Additionally, Transnova, a subdivision of the Norwegian Ministry of Transportation, as well as the association of Norwegian Municipalities are in the steering committee of the project. In 2009 The Norwegian Ministry of Traffic and Transport formulates the aim of reaching a 10% market share of electro vehicles until 2020 which would be around 300,000 units.

In 2009 Norway hosted the Electric Vehicle Symposium (EVS) Viking Rally 2009. The competition was a road rally from Oslo to Stavanger for zero emission vehicles only in order to show the technical capabilities and to promote electro mobility.

In Norway, Statoil operates all of the currently 19 E85 flexifuel refuelling stations. Statoil Storo, was the first E85 station in Norway, so the company started sales of E85 from Statoil Skøyen in Oslo and Statoil E6 Furnes, Hedmark. Furthermore, all Statoil service stations selling regularly diesel blended with 7% biodiesel. According to the geoinformation system www.zero.no/zero/transport/biodrivstoff/fyllestasjoner there are additional 4 refuelling stations for biodiesel B30 and 2 for biodiesel B100 in Norway.

According to lpg-stations.lpginfosite.nl/lpg-noorwegen/ LPG is available in nearly all parts of the country with more than 100 refuelling stations. The geoinformation system www.metanoauto.com/modules.php lists 10 refuelling stations for biogas in the Oslo and Stavanger region.

The geoinformation system www.h2stations.org list 9 hydrogen refuelling stations whereof at the moment 4 are in operation (all in south Norway related to the HyNor project)-

In several larger Norwegian cities public accessible recharging points for electric vehicles are available The webpage www.gronnbil.no/elbilkartet gives a detailed overview (including a geo-information system) on public recharging stations for electric vehicles all over the country (in April 2011 there are listed 2,666 charging plugs). The City of Oslo intents making the Norwegian capital to one of the global leader in e-mobility. It now can boast the highest number of recharging stations per capita. In 2010 a new lot was opened which is the largest of its kind in the world, with 50 free parking and recharging stalls. Oslo also has 179 other recharging stations for e-cars, and aims for 700 within the next two years.

Fiscal incentives

Norway has long experience with environmental taxation. Taxes have been introduced to reduce environmentally harmful emissions to air and water and to reduce the amount of waste generated. Taxation had of course an environmental impact long before taxes were established as an instrument of environmental policy. Already in 1931 Norway introduced a petrol tax. The first tax that had an explicit environmental purpose was levied on sulphur in mineral oil in 1971. However, a wide-spread use of environmental taxes was not seen until the late 1980s and early 1990s. Taxes on mineral fertilisers, pesticides and lubricant oil were introduced in 1988, CO2 tax on petrol, auto diesel oil, mineral oil and the petroleum sector (only offshore) in 1991, while the sulphur tax on mineral oil was increased substantially. Since the early 1990s tax instruments have played an important role in providing incentives for cleaner production and consumption patterns, even though regulation has remained the main policy instrument to abate environmental damage.

The government has in previous budgets revised the car registration fee (bilavgiftene) into a more environmentally friendly direction, for example by introducing CO2 emissions as one of the main components of the one-time fee from 2007. Since 2008 the annual fee is environmentally differentiated, and since 2009 the CO2 component is adjusted to incentivise to buy cars with low CO2 emissions. The budget for 2010 provided the government with suggestions for changes that make it more profitable to buy cars with low CO2 emissions. It was decided to increase the rates in the CO2 component by about 100 NOK, while all other rates were increased by about 190 NOK. Meanwhile, the two lowest steps in the power component are reduced to keep government revenues unchanged. This registration fee has to be paid with the first registration of the car. It is calculated according to weight, motor power and CO2 emission. The CO2 “tax” component is calculated on basis of the type of vehicles as well as the emission amount. The vehicles in tax group A have the highest fees. The other groups receive tax calculated as a percentage of this fee.

• Group A 100% Passenger cars, vans class 1 coaches under 6 feet of seating up to 17 seats

• Group B 22% class 2 vans/ trucks with a permitted total weight of less than 7,501 kg

• Group C 22% camping cars

• Group H 40% taxis

• Group J 40% buses under 6 feet, with up to 17 seating places, including at least 10 are mounted in the speed direction

The fee for the Group A vehicles is progressively calculated on basis of the CO2 emissions:

• first 120 g / km = 0.00 NOK

• next 20 g / km = 725 NOK

• next 40 g / km = 731 NOK

• Next 70 g / km = 1,704 NOK

• rest = 2,735 NOK

Furthermore, there is an overall tax deduction (for other vehicle tax components), if a car has an emission below 120 grams per kilometre (there is a deduction of 500 NOK per gram). A new registration of second hand sold cars is only related to vehicle type and weight without a specific CO2 component.

For the annual car circulation tax there is no direct environmental component (only indirect related to vehicle weight) but the tax-free allowance given for this tax (calculated as NOK/km) i.e. for trips to/from working places and for business trips is considerable higher for electric cars.

Furthermore, there are taxes on fuel with strong environmental incentives, e.g. the following table sets out the tax planning in 2010:

The municipalities have been allowed to levy a municipal fuel tax fee in a limited geographical area. In addition, the State levies regularly 25 percent VAT on fuel prices.

The government of Norway has established a comprehensive fiscal incentive schema for the purchase and use of electric cars. This gives large reduction in the vehicle's total cost, i.e. by:

• No VAT;

• No import duty;

• Reduced annual vehicle tax (390 NOK);

• Free access to public fields;

• Free parking in public car parks;

• Use toll roads fee;

• Drive in bus lanes;

• Free domestic ferry.

Since 2011 the leasing of electro vehicles enjoys a reduced VAT class compared with conventional vehicles. There is also a full VAT exemption for the purchase of battery systems (i.e. for the replacement). Furthermore, the basis value for the annual circulation tax of companies is reduced by 75% for pure electro vehicles and 50% for other electro related systems (i.e. hybrid). Also, the depreciation rate for electro vehicles is reduced to one year for increasing the attractiveness of replacement investments.

Funding

Introduction in 2011 of a general funding amount of 30,000 nkr for the purchase of an electro vehicle or hybrit vehicles of the calss N1 and M1. Alternatively there is also funded the purchase of a more powerfull battery system (for systems higher as 70Wt/kg 1.7 nkr per Wt) for the purchase of a new vehicle or the exchange of an older battery system. For companies there is a funding schema electric cars funding of 50% of the vehicle price up to 50% are given to companies.

There was set up a funding budget for electro vehicle recharging stations of about 100 mill nkr (about 11.9 mill EUR). New recharging stations are planned on public parking places.

Regulation

Norway has not yet established any statutory basis for Low Emission Zones (LEZs), but a new section under the Norwegian Road Traffic Law is currently being prepared for a national scheme. Norway has an advanced electronic paying and controlling system for charging toll-road projects in 40 places in Norway, and the Norwegian LEZs will be founded on this. Bergen has confirmed that it will start planning as soon as possible, with a current start of summer 2010. The other two cities are expected to start their LEZs in 2010/11. The LEZ will be affect heavy duty vehicles over 3.5 Tonnes (i.e. buses, coaches and lorries).

Introducing of new emission regulational on local level (municipals) in 2011 in favour of electro vehicles.

Law 16 July 1999 No. 69 of relating to Public Procurement regulates this field in Norway. This is based on EU rules on public procurement directives. In § 6 of the Act (Resource and environmentally conscious procurement) there are overriding environmental requirements for all public procurement: "State, municipal and county agencies as well as legal persons mentioned in § 2, first paragraph b shall be planning each acquisition taking into account life cycle costs and environmental impact of the acquisition." Although, there are a number of socially beneficial conditions to safeguard public procurement, this requirement related to the planning phase of an acquisition is unique to the environment. In regulation 7 April 2006 No. 402 on Public Procurement (FOA) additional environmental requirements are specified in terms of the tender documents for procurement of respective national thresholds and the EU threshold values. These regulations govern the purchase of most goods and services, including construction work.

• FOA § 8-3 (1) and § 17-3 (1): "... In the design of the requirements should be placed on life-cycle costs and environmental impact of the acquisition. It shall, as far as possible, set specific environmental standards for product performance or function. "

• FOA § 17-3 (4): Performance or functional requirements may include environmental characteristics.

• FOA § 17-13: it is possible to require the supplier's system for environmental management or specific environmental measures at the supplier on the purchase of services or construction works which have great impact.

For purchase of a number of transport services and other services are the so-called supply regulations (regulations on April 7, 2006, No. 403) on the procurement procedures in the supply sectors (water, energy, transport and postal services). It is also prepared guidance on how environmental requirements should be interpreted. The most important mentors is the Environment and the Public Procurement Regulations issued by the Trade and Industry Ministry in 2004 (the area of public procurement was later transferred to the Ministry of Government Administration and Reform) and "Buying Green", published by the European Commission in 2004.

Since 2011 with the programme to promote the e-mobility there is a strictly preference for electro vehicles in the public procurement of central government and local administrations.

The Norwegian Green Public Procurement-program (GPP-program) has been commissioned by the Norwegian Ministry of the Environment. In principle the GPP-program is elaborated to help procurement officers to fulfil the obligation of the Norwegian Procurement Act set out above. The duration of the program was 2005 until 2009 but is continued applying now more rigid toward environmental standards as set before. Based on national and international experiences the government prioritizes certain product areas including “Transport and car including business travelling”. Within the GPP-program it was defined that only vehicles which provide low emissions of greenhouse gases, NOX emissions and emissions of particles should be selected. By purchasing and leasing of passenger vehicles, except emergency vehicles and other vehicles with special functional requirements, a maximum limit of 120-140 g/CO2/km is guide lined in 2008. It may be appropriate to reduce limit in subsequent years. It is considered to ensure that all government vehicles are CO2-free or CO2-neutral fuelled by 2020. Diesel trucks must have particulate filters. Quiet, easy rolling and studded tires to be as far as possible shall be selected. Certain types of car accessories and related services (i.e. car service, car care products, fuel, lubricating oils, and tires) are subject of an environmental standard (Nordic Swan) which is regularly defined as mandatory requirement within public procurement.

Before 2008 the “Green in Practice GRIP”, an independent foundation established by the Norwegian Ministry of the Environment in the mid 1990s creates a framework using market forces bounded in public procurement in favour of the environment. Through many projects during these years GRIP has shown that good environmental performance, value added, reduced costs and improved profile do not exclude each other. GRIP’s objective was to promote sustainable production and consumption in Norwegian private and public organisations. In the field of public procurement the purpose of GRIP’s activities were to:

• Positively stimulate public bodies to work for a sustainable development;

• Make it simple to take environmental considerations in procurement processes;

• Make public bodies familiar with how environmental criteria can be used within the procurement law;

• Make available environmental information and environmental product criteria;

• Supply procurement officers with the necessary tools and methods to undertake green purchasing;

• Stimulate suppliers to deliver the green goods and services public bodies are demanding.

GRIP projects on environmentally friendly car purchase has shown considerable success, i.e. the number of enterprises in the project that have included environmental requirements in 2006 is 7 (Oslo commune, Asker commune, Forsvaret, Statens Bilutvalg, Posten, Hertz, Europcar). Oslo commune, Asker commune, Statens Bilutvalg and Posten has in 2006 bought 1,375 environmentally friendly cars. In this context GRIP has developed a tool for evaluating products during the product selection and contract award phase. This tool is based on accepted principles. The foundation is based on the Fishbein evaluation method from 1963, integrated with procurement cost or the net present value method. A specific sample version is developed for the purchase of cars in which for the contract award environmental criteria can be included and evaluated, i.e. CO2-emissions per km, NOX-emissions per km and emissions of particulate matter per km. For 2008 GRIP estimates that about 5,200 vehicles (about 60%) in state enterprises covers an average emission of 180 g/CO2/km.

In 2008 the full responsible and tasks for public procurement was taken over by Difi - The Agency for Public Management and eGovernment, from GRIP. A market research of Difi for 2008/2009 shows that central governmental institutions as well as local authorities use some degree of environmental requirements in 70% of public procurements. This is a relative high value compared with the EU average. With regard to transportation and the procurement of road vehicles there are many indications that the Government's objectives are met. There has been a high degree of cooperation between various agencies (Police, Post Office, BBC and the Armed Forces) and there has been a willingness to adopt specific environmental criteria. I.e. the police bought about 200 cars a year; the last agreement was signed in 2006. Following requirements for the environment were required:

• The air conditioner must not contain CFC or HCFC

• The car should not contain mercury or cadmium.

• The coating should be water based.

• The paint shall not contain lead, cadmium and chromium.

• Min. 85% of the vehicle must be recyclable.

There were no contracts awarded with regard to specific "environmental cars". Main vehicles selected were the VW Passat, Mercedes Vito and Ford models. New competition for delivery of cars to the police was scheduled to be announced in autumn 2010. In this tender will be held environmental standards that meet current requirements. As another example the Norwegian Post has an average age of its fleet of approx. 4 years for trucks and about 2 years for vans. 69% of the Post's cars are of the year 2007 or newer and 49% of the trucks meet the requirements of Euro 4 engines or newer. When it comes to alternative technology, the Post Office in 2009 is likely to have more than 100 electric vehicles / mopeds. In the procurement of vans with a gross weight below 3.5 tonnes, within the contract signed in early 2009 the Post Office used environmental, health and safety criteria, the weighting was 20 percent, and it was emphasized i.e.:

• CO2 emissions.

• HSE.

• Possibility of alternative fuels.

• Particle Filters.

Transport and environment 2007 - selected indicators for the transport and communication sector

Miljø- og samfunnsansvar i offentlige anskaffelser

Norwegian National Program on Green Public Procurement

a good buy - And what can you, as leader, do?

a good buy - What can you, as a Procurement Officer, do?

GRIP- evaluation tool – sample car purchase