Norway will ban sales of all petrol and diesel powered cars, as part of a plan to have 100 per cent of all cars running on green energy by 2025.
The Democratic and Liberal parties have confirmed reports on the agreement, however, the right-wing Framstegspartiet, or Progress Party, says the move is still being looked at.
It is a significant move, as a large proportion of Norway’s funds rely on the country’s petroleum industry.
Tesla chief executive, Elon Musk, tweeted: “What an amazingly awesome country. You guys rock!!”
Norway is also set to introduce a climate tax on electricity. Almost a quarter of the country’s cars already run on electricity, and Norway is a heavy producer of renewable energy, with more than 99 per cent covered by hydropower.
The country also aims to triple its wind power capacity by 2020, with a $6 billion investment in the sector.