A prominent Norwegian driving school is canceling its planned purchase of electric buses and trucks, citing unfair competition from providers using cheaper diesel vehicles. The decision highlights growing tensions between Norway's ambitious climate goals and practical business realities.
Karl-Kristian Høiseth, managing director of Stjørdal-Meråker Traffic School, expressed deep frustration with current public procurement rules. His company has invested approximately 20 million Norwegian kroner in electrification but now faces cancellation of two electric bus orders scheduled for delivery.
"We feel deceived," Høiseth stated. "We cannot compete with operators who haven't started the transition to zero-emission vehicles."
The school employs 60 staff members and operates 40 heavy vehicles used for driver training. Most still run on diesel, though the company aims for full zero-emission conversion. The problem stems from public agencies failing to enforce environmental requirements in their contracts.
Recent rulings from Norway's Complaints Board for Public Procurement confirmed that NAV Rogaland violated procurement regulations by omitting climate criteria. The agency was forced to cancel one contract worth 45 million kroner after the driving school's successful complaint.
New regulations effective since January require public agencies to weight climate and environmental factors at 30% in procurement decisions. Despite this, ten public purchasers have broken these rules since last year alone.
Public procurement represents enormous spending power in Norway, with approximately 740 billion kroner spent annually on goods and services. Industry Minister Jan Christian Vestre emphasized that "every tax krone used for public purchases should contribute to the green shift."
Yet implementation remains inconsistent. NAV Vestland's county director Bjarte Hysing-Olsen defended their approach, stating market conditions aren't mature for requiring zero-emission vehicles in all contracts. "We think the market wasn't ready for stronger requirements than what we set," he explained.
Following media scrutiny, NAV has now canceled two procurement competitions in Vestland and Rogaland. Both will be re-run with revised climate considerations.
The situation exposes a fundamental challenge in Norway's green transition. Businesses investing in expensive zero-emission technology face unfair competition from those sticking with cheaper, polluting alternatives when public agencies don't enforce their own rules.
This creates a vicious cycle where forward-thinking companies risk being punished for their environmental investments. The driving school's dilemma represents a broader pattern affecting numerous Norwegian businesses navigating the country's ambitious climate policies.
Norway's paradox becomes clear here. The nation leads in electric vehicle adoption among personal cars yet struggles to implement similar standards in commercial and public procurement. The gap between policy ambition and practical enforcement threatens to undermine the very green transition Norway champions internationally.
What happens next will test Norway's commitment to its environmental goals. If public agencies continue ignoring their own procurement rules, more businesses may abandon green investments, potentially slowing the country's progress toward emission targets.