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Why did an oil-producing country pumping about two million barrels a day make electric cars 96 percent of new sales in 2025 while building the world’s largest sovereign wealth fund?
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Photo by Zukiman Mohamad on PexelsThe fund turned a temporary windfall into foreign assetsParliament established what was then called the Government Petroleum Fund in 1990.
It was later renamed the Government Pension Fund Global, although it remains widely known as the oil fund.
This electricity advantage is geographic, not a product of the oil fund.
With electric cars established as the default, the government began withdrawing support.
For 2026, it reduced the VAT-free portion of an electric car’s price from 500,000 to 300,000 kroner and announced an intention to remove the exemption in 2027.