“challenges And Benefits Of Electrifying Europe’s Transportation” – In 2020, there were ten million electric cars on the world’s roads. It was a pivotal year for the electrification of mass-market transportation. Electric vehicle sales accounted for 4.6% of global vehicle sales. The availability of electric car models has increased. New initiatives have been launched for critical battery technology. And, this progress has been made in the midst of the Covid-19 pandemic and the associated economic downturn and lockdown.

Over the past decade, various policies to support electric vehicles (EVs) have been established in major markets, which has contributed to a large expansion of electric vehicle models.

“challenges And Benefits Of Electrifying Europe’s Transportation”

But the challenge remains enormous. Achieving the trajectory corresponding to the sustainable development scenario requires placing 230 million electric vehicles on the world’s roads by 2030.

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For EVs to realize their full potential to combat climate change, the 2020s must be the decade of mass adoption of lightweight electric vehicles. In addition, specific policy support and model expansion for the medium and heavy vehicle segments will be critical to reducing emissions and making progress towards climate goals.

Significant fiscal incentives have fueled the initial uptake of light electric vehicles (LDVs) and helped scale up the EV manufacturing and battery industries. The measures – primarily purchase subsidies and/or car purchase and registration tax concessions – were intended to reduce the price gap between conventional cars. Such measures were implemented as early as the 1990s in Norway, 1 in the United States in 2008, and in China in 2014.

The standards have increased the role of electric vehicles to meet the standards. Today, more than 85% of car sales in the world are subject to such standards. CO

Emissions standards in the EU have played an important role in driving sales of electric vehicles, which saw the biggest annual increase in 2020, reaching 2.1 million. Some jurisdictions have used mandatory targets for EV sales for decades, such as California2 and China since 2017.

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Convenient and affordable publicly available chargers will become increasingly important as the scale of electrification grows. To address this problem, governments have supported EV charging infrastructure through measures such as direct investment to install publicly available chargers or incentives for EV owners to install charging points at home. In some locations, building codes may require new construction or substantial remodeling to include charging points, such as in apartment buildings and retail establishments.

Efforts by cities to offer improved value for EVs have spurred sales even outside the city. Such measures include the strategic deployment of charging infrastructure and the introduction of preferential/prohibited circulation or access schemes, such as low and zero emission zones or differentiated circulation charges. Such measures have had a major impact on electric vehicle sales in Oslo and a number of Chinese cities.

Making the 2020s a decade of electrification will require more ambition and action among both market leaders and followers. For markets that have shown significant progress in the 2010s, the main focus in 2021 and beyond should be the introduction and tightening of regulatory instruments, as well as expansion. Examples include the EU CO2 emissions regulation for cars and vans, China’s New Energy Vehicle (NEV) mandate or California’s Zero Emission Vehicle (ZEV) mandate.

Near-term efforts should focus on continuing to make EVs competitive and phasing out purchase subsidies as sales expand. This could be done through differentiated taxation of vehicles and fuels based on their environmental performance and by strengthening regulatory measures that would allow the clean car industry to flourish.

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In the long term, realizing the full potential of EVs to help reduce vehicle emissions requires integrating EVs into power systems, decarbonizing electricity generation, deploying charging infrastructure, and manufacturing sustainable batteries.

Countries that currently deploy a limited number of EVs can take advantage of lessons learned and advances in automotive and battery technology to promote EV production and uptake. Product innovation and expertise developed in the charging services industry will also benefit emerging economies. But they will also need to significantly tighten fuel economy and emissions standards. Developing economies with large markets for used imported vehicles can use policy levers to access electric vehicle models at attractive prices, although they should pay particular attention to the impact on electricity grids. #anchor3## 4

To date, more than 20 countries have announced a complete phase-out of internal combustion engine (ICE) vehicle sales over the next 10-30 years, including emerging economies such as Cape Verde, Costa Rica and Sri Lanka. Moreover, more than 120 countries (representing about 85% of the global road vehicle fleet, excluding two/three-wheelers) have announced economy-wide net zero emissions pledges, aiming to reach net zero within the next few decades.

Policy attention and action must be extended to other modes of transport, especially commercial vehicles – light commercial vehicles, medium and heavy trucks and buses – as they have a growing and disproportionate impact on energy consumption, air pollution and carbon dioxide.

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Exhaust. Medium and heavy vehicles represent 5% of all four-wheeled vehicles in circulation, but almost 30% of CO2.

Exhaust. Advances in batteries have led to the rapid commercialization of more and more models in heavier weight segments and with increasing range over the past few years.

In 2020, California was the first to introduce a ZEV sales requirement for heavy-duty vehicles. Expanded clean truck regulations will come into effect in 2024. The Netherlands and a number of other countries are implementing zero-emission commercial vehicle zones and pioneering efforts to deploy them. Although this is a ‘hard to reduce’ sector and there are competing decarbonisation pathways (including hydrogen and biofuels), the electrification of medium and heavy vehicles is increasingly recognized as a promising way to reduce both local pollutants and CO.

Exhaust. Electrification of HDVs will require policy support and commercial deployment as passenger vehicles in the 2010s. Electric buses are already making their way into major cities around the world, supported by national and local policies targeting air pollution. Policy measures to promote electric buses are diverse; These may include competitive tendering, green public procurement programs, purchase subsidies and direct support for charging infrastructure, as well as effective pollutant emission standards.

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Given their huge numbers and popularity, the electrification of two/three wheelers in developing economies is central to the decarbonisation of transport in the near term. China is leading the way by banning two/three wheeler ICE versions in several cities.

Only countries that have an ICE ban or electrification target, or have net zero emissions by law or proposed legislation. Those with only net-zero emissions policy documents, e.g. Japan and China are not included. The European Union is a collective commitment of 27 member states. Some individual countries also have net-zero emissions pledges in law or proposed legislation (Denmark, France, Germany, Hungary, Ireland, Luxembourg, Slovenia, Spain, Sweden and the Netherlands). Targets reflect status as of April 20, 2021. Electrified vehicles here include battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), fuel cell electric vehicles (FCEVs) and hybrid electric vehicles (HEVs), depending on each country’s definitions. ZEV = Zero Emission Vehicle (BEVs, PHEVs and FCEVs).

Electric car sales broke all records in 2020. They increased by 40% compared to 2019. This is particularly noteworthy as sales of all vehicle types are down 16% in 2020, reflecting pandemic-related conditions.

Sales of electric vehicles have been bolstered by existing policy support and boosted by Covid-related stimulus measures. Before the pandemic, many countries were already developing and reinforcing e-mobility strategies with key policy measures such as fiscal incentives and vehicle decarbonisation.

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Emission standards are stricter. Purchase incentives increased in early 2020, especially in Germany, France and Italy. As a result, sales of electric vehicles in Europe were 55% higher in the first half of 2020 compared to the same period in 2019.

In the rest of the world, electric car sales have been hit by the economic crisis, with sales falling from 2019 levels, although not as sharply as conventional cars.

Additional stimulus measures related to Covid-19 further boosted sales of electric vehicles from mid-2020. From July to December, sales exceeded 2019 levels every month in all major markets, despite the second wave of the pandemic.5

These stimulus measures differed significantly from those taken during the financial crisis of 2008-09. First of all, special attention was focused on increasing the uptake of electric and hybrid vehicles. Second, a number of countries have taken a more integrated approach to the transport sector by supporting charging infrastructure, public transport and non-motorized mobility. Measures to stimulate electrification have primarily taken the approach of purchase incentives (or delaying the phasing out of subsidies) and EV-specific cash. It is worth noting that Germany did not provide subsidies for conventional vehicles in the support package for the automotive sector.

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Approaches were more integrated into the broader context of clean energy transition and EV deployment commitments than approaches taken before the Covid-19 crisis. In a number of countries, they have been confirmed in 2020 through new commitments to reach net-zero emissions by mid-century.

Additionally, continued declines in battery costs, the wider availability of electric models, the adoption of electric vehicles by fleet operators, and the enthusiasm of electric vehicle buyers have created fertile ground for the electric vehicle market in 2020. These factors have been added

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