Shoosmiths and Cornwall Insight launch index ranking countries on Electric Vehicle appeal

The UK is the fifth most attractive European country for Electric Vehicle (EV) market potential, according to the Electric Vehicle Country Attractiveness (EVCA) Index.

The new index, developed by Cornwall Insight and law firm Shoosmiths, identifies a range of factors[1] from purchase subsidies to national EV charging targets, upon which countries are ranked accurately on their EV appeal, with Norway clinching the top spot.

The transition to e-mobility has been a mixed bag among nations in the EVCA index, with some enthusiastic supporters while others have been more hesitant. However, with most European countries, including the UK, imposing a ban on the sale of new petrol and diesel passenger cars and light commercial vehicles (vans) by at least 2035, many saw an increase in EV uptake in 2022, with the EV market expected to become more established across Europe.

Norway is a leader in EV adoption due to subsidies, tax cuts, and a large-scale charging network. Other countries are following suit, with market shares largely ranging from 10 to 20 percent across the index. Year-on-year growth is also an important indicator, and Ireland, Belgium, and Poland have emerged as top performers with growth rates of over 50 percent – with Ireland sitting at an impressive 81.3 percent. 

EV Country Attractiveness index scores and rankings

Shoosmiths’ national multi-disciplinary e-Mobility & infrastructure team has a proven track record supporting the EV sector. Its specialists advise companies involved throughout the sector from initial corporate fundraising and investment to project site selection (including real estate, commercial, planning and construction advice), to project operation and maintenance, to operational commercial offers for consumers and third-party access to charging infrastructure, to final divestment.

Calum Stacey, legal director in Shoosmiths’ energy and infrastructure team, said: “The EVCA index highlights the differing approaches taken by European countries and how they wish to incentivise the transition to zero emission vehicles. 

“One of the key drivers for those countries towards the top of the index is the allocation of public funds to support the roll out of a charging infrastructure to support the transition. However, as can be seen in both Germany and the UK, the public funding model is likely to be time limited with the private sector needed to step in once a critical mass in relation to EV adoption has been reached.”

Jamie Maule, research analyst at Cornwall Insight, said: “While the results of the EVCA may not come as a surprise, after all Norway is well known for its EV success, it is the promise for the future across Europe which is the most encouraging. Although the countries leading the index, including the UK, had an early advantage in implementing EV incentives, a larger market share is not the only indicator of success. Even countries currently lower in the rankings are showing promising year-on-year advancements, indicating a shift in interest towards the EV market.

“As the index evolves, it will be interesting to see how countries move up the ranks through the implementation of new policies, targets, subsidies, and investment incentives, hopefully resulting in a surge of EV adoption throughout the continent.” 

Reference  

[1] A range of indicators, subject to differing weightings, have been utilised in the production of this index. They are listed as follows without regard to importance or weighted value:

• Committed government funding
• National EV sales targets
• National EV charge-point implementation targets
• Support for ICE vehicle rollback or ban
• Available investment subsidies, funds, and tax benefits for EVs and EV charge-points
• Available purchase subsidies, funds, and tax benefits for EVs and EV charge-points
• Ability to conduct business
• Rate of inflation
• Market share of BEVs
• Year-on-year growth of BEV sales
• Wholesale cost of electricity scaled to GDP