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Opinion: IEA Director: Electric vehicles are transforming the automotive industry.that’s good news for the climate

But the current crisis could be a tipping point for clean energy. Moving to a cleaner and safer energy system means addressing emissions in the major greenhouse gas emitting sectors (electricity, industry, transportation and buildings). Transportation is more dependent on fossil fuels than any other sector, so electric vehicles are essential to reduce emissions, harmful urban air pollution, and reduce countries’ dependence on oil imports.
Considering the latest trends and priorities of governments and businesses around the world, the next few years will see tremendous growth in electric vehicles. By 2030, more than one in two vehicles sold in the United States, the European Union and China could be electric, says World Energy Outlook, a flagship report from the International Energy Agency (IEA). (World Energy Outlook) will be released next month. This is the extraordinary transformation we are witnessing in his three largest car markets in the world. Globally, EVs’ share of the automotive market could rise from less than 10% last year to nearly 40%.

But there is still a lot of work to be done for EVs to realize their potential, and governments can help. Start here:

Sales of electric vehicles are already growing strongly in Europe and China. The United States is lagging behind, but thanks to recent inflation-cutting laws, this is changing. I believe this is the most important energy and climate action by any country since the 2015 Paris Agreement. Measures to boost production, boost sales and expand charging stations and other infrastructure.
In Europe, the Fit for 55 package will increase EV sales there by introducing stricter emissions standards, phasing out internal combustion engine cars and vans by 2035, and supporting the rollout of charging stations for the public. It will help you accelerate further.

Outside of China, the EU and the US, EV growth is much slower. Automakers need to strengthen supply chains and scale production quickly, and governments need to support this by providing manufacturing incentives and removing bureaucracy.

Governments should also help companies source enough and sustainably the minerals such as lithium needed to make EV batteries. Countries need to work together to secure critical mineral supplies, as they have done for decades on oil security.

Offer tax credits to consumers

The initial purchase price of an EV in most markets is higher than that of a gasoline vehicle, but the Inflation Control Act includes measures to address this in the United States, including tax credits of up to $7,500 per vehicle. is included. European countries have already implemented similar measures, and China recently extended its EV tax exemption until the end of next year.
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The low running costs of electric vehicles often mean that the extra money owners paid to purchase the vehicle can be recouped within a few years. Despite current high electricity prices, EVs will remain the most cost-effective option over time, according to a new IEA analysis.

Growing EV sales outside of China, Europe and the US will require more than automakers trying to expand their electronics beyond their core markets. Governments need to push policy reforms and provide financial support to make EVs the most affordable option. We also need to build a charging infrastructure to ensure there are enough chargers for the growing number of EVs.

Countries around the world are competing hard to become leaders in this emerging new energy economy. And we need this competition. That’s what drives the massive cost reductions in solar, wind, and EV batteries in recent years.

Today’s energy crisis creates extraordinary challenges, especially for the coming winter. But it also opened more doors for the new world energy economy to replace the old one. The phenomenal growth of EVs is just beginning, but with government support and continued technological advances, EVs could take hold even faster.

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