Road transport is electrifying

Road transport is making significant strides in reducing CO2 emissions, driven by the increasing adoption of electric vehicles for both cars and vans. This shift towards electrification is crucial for a greener future.

Additionally, embracing sustainable habits such as walking, Cycling, and using public transportation can further amplify these efforts. In the Nordic countries, there was an increased use of cars during COVID-19, but post-pandemic, there has been a notable reduction as people return to more eco-friendly transportation options.

Sweden has ambitious target of reducing its emissions from the transport by 70% by 2030 compared to 2010. In 2022, Sweden was 36% below 2010 level and progress seems good.

Denmark, Finland, and Norway have also managed to peak their road transport emissions around 2010 and the emissions have on a reducing trajectory despite large annual variability.

Iceland's road transport emissions are small compared to other Nordic countries, but steadily increasing.

Figure 09.1: CO2 emissions from road transport

The number of electric vehicles (EVs) in the Nordic countries has increased tremendously between 2010 and 2023. As of 2023, there are over 2 million EVs across the five countries, corresponding to 15% of all cars in the Nordics.

Norway leads with approximately 900000 EVs, followed by Sweden with around 560000, Denmark with about 310000, Finland with 224,000, and Iceland with 44000.

Note: Electric vehicles include plugin hybrid vehicles (PHEV) too.

Figure 09.2: Growth in EV car stock by country

Figure 09.3: Share of EV car stock by country

The Nordic region has seen a significant increase in the number of Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs), particularly since 2019. By 2023, the stock of BEVs reached approximately 1.3 million, while PHEVs totalled around 750000. In contrast, the stock of Fuel Cell Electric Vehicles (FCEVs) remains relatively small, with about 600 vehicles across the Nordics in 2023.

While both BEV and PHEV sales were increasing until 2021, BEV sales have continued to grow (reaching 327000 sales in 2023), whereas PHEV sales have declined (93000 sales in 2023). FCEV sales remain quite insignificant.

 BEV:   Battery Electric Vehicles solely run on electricity.

 FCEV:   Fuel Cell Electric Vehicles running on hydrogen.

 PHEV:   Plug-in Hybrid Electric Vehicles with a gas tank and larger battery.

Figure 09.4: Growth of EVs by types of electrical motor

Figure 09.5: Sales of EVs by powertrain

In all Nordic countries the popularity of EVs have increased drastically over the last five years.

In 2023, more than 50% of all cars sold in the Nordics were electric. In Norway this is as high as 93%.

EV sales in Norway took off already in 2014 and the other Nordic countries followed later in 2018-2020. The early start in Norway is likely due to government subsidies.

Figure 09.6: Share of EV car sales by country

The development of the electric van stock in the Nordic region has seen a remarkable increase over the past few years, with a particularly sharp rise since 2021.

By 2023, the total number of electric vans reached approximately 65,000.

Norway leads the way, accounting for 48% of the region's electric vans, followed by Sweden with 33%. Denmark and Finland hold 14% and 5% of the stock, respectively.

Note: There is no data for electric vans in Iceland

Figure 09.7: Electric vans stock in the Nordics

Behavioural changes are important when reducing the emissions from transport sector. Increasing use of public transportation, cycling, and walking reduces the emissions and can improve the health.

The long-term trend in the use of cars versus public transportation seems to be decreasing in Sweden and growing in Denmark and Finland.

The share of cars increased in all Nordic countries during COVID-19 and few years more are needed to be able to assess if this had long-term impacts.

*Inland: Eurostat statistics of inland transportation includes cars, trains, buses and trams. Airplanes, boats, walking, bicycling, etc. are not included. The figure shows the share of cars, and the remaining share would cover the public transportation.

Note: The shares of transport modes are difficult to estimate, and the statistics have in continuities e.g. in 2016 for  Sweden and Finland without an apparent reasons.

Figure 09.8: Share of inland* transportation travelled by cars

Valmet Automotive operates the Uudenkaupungin autotehdas, Uusikaupunki Finland, which is a significant player in the EV industry. The facility is known for its comprehensive services in EV manufacturing, including the production of electric cars and vans.

Valmet Automotive has also expanded its operations to include battery systems, with a dedicated battery plant in Uusikaupunki that started large-scale production in 2021. This plant focuses on high-voltage battery systems, which are crucial for the electrification of vehicles.