Featured image: Teknikens Varld

The Danish government agrees to provide funding to incentivize the purchase of the first 775,000 electric vehicles to hit the country's roads. In addition, a broader target was announced to achieve at least one million vehicles with low or zero emissions by 2030. This policy significantly stimulates the growth of sales of the most demanded electric vehicles in the world—Teslas.

On December 4, Denmark agreed with parliament on a deal to put at least 775,000 electric or hybrid vehicles on Danish roads by 2030 as part of its latest step towards its ambitious target of reducing greenhouse gas emissions by 70% by 2030, Energy World reported.

The government also aims to have at least one million low- or zero-emission vehicles on the road by 2030, but the announced deal will only provide funding for the first 775,000 vehicles. This is expected to be a major driver of significant growth in electric vehicle sales.

There are currently only about 20,000 electric vehicles in Denmark, more than 10% of which are Teslas. Model 3 was the best-selling electric car in the first half of 2020, indicating a very high interest in the manufacturer's vehicles. The appearance of additional purchasing incentives  should further stimulate the growth of Tesla's sales—a company which has already established itself as a manufacturer of the highest quality EVs on the market.

Under the new agreement, taxes and levies on vehicles powered by fossil fuels will gradually increase. Also, taxes on new cars will depend on how much CO2 they emit.

"The average electric car will be significantly cheaper in the coming years," Tax Minister Morten Boedskov said.

The plan for which the government will allocate $407.62 million will be revised in 2025 to develop measures to achieve one million zero-emission vehicles by 2030 on the country's roads.

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