The proposal would require a huge change in production and consumer choice. To put it in perspective, in 2022 about 6% of U.S. passenger vehicle sales were all-electric.

I study the electric vehicle industry and policy. Here’s why I think the Environmental Protection Agency’s plan can succeed.

Automakers have met tough targets before

Automakers typically push back against tougher rules and often lobby to get standards relaxed. However, U.S. car companies have also shown that they can meet ambitious goals.

When California began requiring that car companies sell a certain percentage of zero-emissions vehicles, its initial target translated to about 15% of all new car sales by 2025. Automakers quickly exceeded that goal. By 2022, nearly 19% of California’s new light-duty vehicle sales were electric. In response, the rules were ramped up last year to 100% of all new cars by 2035.

U.S. automakers are already ramping up to meet the California rules, as well as aggressive requirements in Europe and China.

The U.S. Environmental Protection Agency can’t set quotas for EV sales, but it can require automakers to progressively lower total greenhouse gas emissions from the vehicles they sell. Emission rates are inherently tied to fuel economy – more fuel-efficient vehicles emit less carbon dioxide, a greenhouse gas that is warming the planet.

The new federal proposal, which still faces a comments period and could change before being finalized, would set emissions restrictions tight enough that it will effectively result in about two-thirds of new light-duty vehicles sold by 2032 being electric. That’s almost as aggressive as rules in the European Union. A second EPA proposal, also announced April 12, 2023, affects heavy-duty vehicles in the same way, but sets a lower target.

The government is offering lots of incentives

While the proposed rules are strict, the federal government has provided unprecedented support over the last year and a half to help meet demand for EV battery parts and production, computer chips and charging infrastructure.

The Bipartisan Infrastructure Law, in conjunction with 2022’s Inflation Reduction Act, are providing billions of dollars in grants and loans for EV and battery manufacturing, plus tax breaks for EV buyers. The infrastructure law also allocated US$7.5 billion to build a network of EV chargers throughout the country under the National Electric Vehicle Infrastructure program.

In an ideal world, “carrots” like these would be enough to encourage automakers to embrace the technological shift. But the EPA’s new greenhouse gas emissions standards represent the “stick” designed to guarantee the shift happens.

EVs aren’t just luxury anymore

Making EVs affordable will be crucial to success. Tightening fuel economy and greenhouse gas emission standards is known to increase the average price of new vehicles. For now, EVs have a higher sticker price than gasoline vehicles, which is a major barrier to their adoption.

The cost of batteries is one reason EV prices are higher. But there’s another important reason, and it may be changing: the types of electric vehicles being produced.

Many of the current EV models are large or luxury vehicles. Those vehicle classes have higher profit margins, meaning automakers make more money off the sales, which helps them invest in production.

But more entry-level EVs are coming on the market soon. And many of them, such as the Chevrolet Bolt, are already fairly cost competitive with comparable gas cars – and cheaper overall when taking into account lower energy and maintenance costs.

Increasing EV production will bring down costs over time as manufacturing processes improve and sales and competition grow.

In the meantime, the Inflation Reduction Act’s tax credits can help narrow the current price gap between certain EVs and gas vehicles. Buyers can get up to $7,500 for qualifying new electric vehicles.

Investments are already underway

Meeting the EPA’s standards won’t be easy, and the industry will face other challenges. For example, the U.S. needs to train workers in new skills, both for auto production and for charger installation, and it will need to boost renewable energy production to power EVs cleanly.

The ramp-up will also come with costs. Ford announced in early 2023 that its EV division had lost $3 billion in each of the previous two years and would likely lose a similar amount in 2023 as it invested in new production.

But Ford also said it expects to see an 8% profit margin by 2026 and to boost production that year to 2 million electric vehicles. Ford and several other automakers have announced large investments in electric vehicle capabilities. A recent Reuters analysis found that 37 global automakers expected to invest $1.2 trillion in EVs, batteries and materials through 2030.

John Bozzella, CEO of the industry trade group Alliance for Automotive Innovation, said automakers were committed to the EV transition and would work with U.S. regulators, but he also called the EPA plan “aggressive by any measure.” Whether it’s feasible, he said, will depend in part on how the U.S. manages charging infrastructure, supply chains and the resilience of the power grid.

The proposed rules provide clear targets

The aggressive nature of the EPA’s proposed regulation is a major departure from the norm. Efficiency standards have traditionally meant incremental improvements in vehicle technologies, like increasing engine efficiency. The proposed rule likely will be challenged once finalized, and since it isn’t written into law, there’s a chance it could be reversed by future administrations.

But these standards can help companies set goals for the future by providing clear targets. Failing to meet EPA rules can come with tough penalties, up to $45,000 per vehicle per day in some cases. That’s enough to very rapidly put any automaker out of business.

In my view, the updated standards are necessary to ensure that the U.S. can keep pace with EV adoption around the world.

Alan Jenn is an assistant professional researcher in transportation at the University of California, Davis.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Transportation is a growing source of the global greenhouse gas emissions that are driving climate change, accounting for 23% of energy-related carbon dioxide emissions worldwide in 2019 and 29% of all greenhouse gas emissions in the U.S.

The systemic changes under way in the transportation sector could begin lowering that emissions footprint. But will they reduce emissions enough?

In a new report from the Intergovernmental Panel on Climate Change (IPCC) released April 4, 2022, scientists from around the world examined the latest research on efforts to mitigate climate change. The report concludes that falling costs for renewable energy and for electric vehicle batteries, in addition to policy changes, have slowed the growth of climate change in the past decade, but that deep, immediate cuts are necessary to stop emissions growth entirely and keep global warming in check.

The transportation chapter, which I contributed to, homed in on transportation transformations – some just starting and others expanding – that in the most aggressive scenarios could reduce global greenhouse gas emissions from transportation by 80% to 90% of current levels by 2050. That sort of drastic reduction would require a major, rapid rethinking of how people get around globally.

The future of EVs

All-electric vehicles have grown dramatically since the Tesla Roadster and Nissan Leaf arrived on the market a little over a decade ago, following the popularity of hybrids.

In 2021 alone, the sales of electric passenger vehicles, including plug-in hybrids, doubled worldwide to 6.6 million, about 9% of all car sales that year.

Strong regulatory policies have encouraged the production of electric vehicles, including California’s Zero Emission Vehicle regulation, which requires automakers to produce a certain number of zero-emission vehicles based on their total vehicles sold in California; the European Union’s CO2 emissions standards for new vehicles; and China’s New Energy Vehicle policy, all of which have helped push EV adoption to where we are today.

Beyond passenger vehicles, many micro-mobility options – such as autorickshaws, scooters and bikes – as well as buses, have been electrified. As the cost of lithium-ion batteries decreases, these transportation options will become increasingly affordable and further boost sales of battery-powered vehicles that traditionally have run on fossil fuels.

An important aspect to remember about electrifying the transportation system is that its ability to cut greenhouse gas emissions ultimately depends on how clean the electricity grid is. China, for example, is aiming for 20% of its vehicles to be electric by 2025, but its electric grid is still heavily reliant on coal.

With the global trends toward more renewable generation, these vehicles will be connected with fewer carbon emissions over time. There are also many developing and potentially promising co-benefits of electromobility when coupled with the power system. The batteries within electric vehicles have the potential to act as storage devices for the grid, which can assist in stabilizing the intermittency of renewable resources in the power sector, among many other benefits.

Other areas of transportation are more challenging to electrify. Larger and heavier vehicles generally aren’t as conducive to electrification because the size and weight of the batteries needed rapidly becomes untenable.

For some heavy-duty trucks, ships and airplanes, alternative fuels such as hydrogen, advanced biofuels and synthetic fuels are being explored as replacements for fossil fuels. Most aren’t economically feasible yet, and substantial advances in the technology are still needed to ensure they are either low- or zero-carbon.

Other ways to cut emissions from transportation

While new fuel and vehicle technologies are often highlighted as decarbonization solutions, behavioral and other systemic changes will also be needed to meet to cut greenhouse gas emissions dramatically from this sector. We are already in the midst of these changes.

Telecommuting: During the COVID-19 pandemic, the explosion of teleworking and video conferencing reduced travel, and, with it, emissions associated with commuting. While some of that will rebound, telework is likely to continue for many sectors of the economy.

Shared mobility: Some shared mobility options, like bike and scooter sharing programs, can get more people out of vehicles entirely.

Car-sharing and on-demand services such as Uber and Lyft also have the potential to reduce emissions if they use high-efficiency or zero-emission vehicles, or if their services lean more toward car pooling, with each driver picking up multiple passengers. Unfortunately, there is substantial uncertainty about the impact of these services. They might also increase vehicle use and, with it, greenhouse gas emissions.

New policies such as the California Clean Miles Standard are helping to push companies like Uber and Lyft to use cleaner vehicles and increase their passenger loads, though it remains to be seen whether other regions will adopt similar policies.

Public transit-friendly cities: Another systemic change involves urban planning and design. Transportation in urban areas is responsible for approximately 8% of global carbon dioxide emissions.

Efficient city planning and land use can reduce travel demand and shift transportation modes, from cars to public transit, through strategies that avoid urban sprawl and disincentivize personal cars. These improvements not only decrease greenhouse gas emissions, but can decrease congestion, air pollution and noise, while improving the safety of transportation systems.

How do these advances translate to lower emissions?

Much of the uncertainty in how much technological change and other systemic shifts in transportation affects global warming is related to the speed of transition.

The new IPCC report includes several potential scenarios for how much improvements in transportation will be able to cut emissions. On average, the scenarios indicate that the carbon intensity of the transportation sector would need to decrease by about 50% by 2050 and as much as 91% by 2100 when combined with a cleaner electricity grid to stay within the 1.5-degree Celsius (2.7 Fahrenheit) target for global warming.

These decreases would require a complete reversal of current trends of increasing emissions in the transportation sector, but the recent advances in transportation provide many opportunities to meet this challenge.

Alan Jenn is an assistant professional researcher in transportation at the University of California, Davis.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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