Get a move on new energy vehicles industry
MORE than 14 countries and over 20 cities around the world have proposed banning the sale of vehicles powered by fossil fuel, such as petrol, liquefied petroleum gas and diesel, from 2025.
The reasons for banning further sale of fossil fuel vehicles include reducing health risks from pollution particulates and meeting national greenhouse gas targets, such as CO2, under international agreements like the Kyoto Protocol and Paris Agreement.
Another important reason is economic. It’s a way to reduce energy dependence on fossil fuel for countries such as China, Japan and those in Europe.
The European Commission’s proposed Euro 7 emission rules on cars, vans, trucks and buses would amount to “a ban through the backdoor” of fossil fuel vehicles from 2025.
Europe’s ban may include tightening air pollution legislation to allow just 30mg/km of the damaging nitrous oxide pollution from combustion vehicles (down from 60mg for petrol and 80mg for diesel) from 2025.
It would also see carbon monoxide limits reduced to 500mg/km from 1,000mg for petrol cars and to 100mg/km from 300mg for diesel cars. The proposed legislation also mention a new Euro 7 standard and says synthetic and bio fuels would not be permitted.
No internal combustion engine vehicle can achieve this, so this effectively means the end of the sales of new internal combustion engine vehicles earlier than 2030 as regulated.
The United Kingdom brought forward its ban on the sale of internal combustion engines by 2030 and hybrids by 2035. The UK originally planned to ban the sale of internal combustion engine cars in 2040, then changed it to 2032, and now much earlier to 2030 to cut CO2 emissions as part of its campaign to fight climate change.
From 2030, all vehicles that the United States government buys will be electric vehicles. Japan will ban the sale of internal combustion engine vehicles in 2035, while China will only allow the sale of electric vehicles from 2035.
About 14 states in the US have followed California’s regulations on carbon emission. A number of European Union countries have also imposed similar regulations.
This has created a new industry known as carbon credit sales. Companies that sell zero emission vehicles, such as those made by Tesla, will earn carbon credit which they can sell to internal combustion engine manufacturers to sell their vehicles.
Automakers that cannot meet the regulations simply comply with emissions standards by buying regulatory credits from Tesla. Fortunately, this helps Tesla’s revenue. In 2020, Tesla earned more than US$1 billion from selling carbon credits to other automakers.
Many countries, like China, Germany, Scandinavian nations, the UK, and the US, are providing incentives and subsidies to electric vehicle manufacturers, electric vehicle charging stations and electric vehicles buyers to accelerate
the expansion of the industry.
It is estimated that it would take 10 years to fully develop electric vehicles infrastructure in any country. This has resulted in many countries, such as China and Indonesia, directing their energy industry to participate actively in building their country’s electric vehicles infrastructure.
China’s National Grid Association was tasked by the government to build 800,000 charging stations a year to meet the target to electrify China.
Following a directive from President Joko Widodo, Pertamina and Perusahaan Listrik Negara formed a joint venture to develop electric vehicle charging stations in Java and Bali. The first one was in operation a few months after the directive.
In 2020, there were 285,000 public charging stations in Europe. The biggest operator of electric vehicle
charging stations in Europe is Shell’s New Motion. Shell also owns Green Lot, one of the largest electric vehicle charging station companies in the US. Shell said by 2025, 20 per cent of its revenue will come from this industry.
Up to March this year, there are about 100,000 charging stations in the US owned by various companies, such as Tesla, Volkswagen, ChargePoint and Green Lot, and the number is growing rapidly.
Studies show that by 2040, internal combustion engine vehicles will only be sold in third world countries. If Malaysia wants to keep progressing towards developed nation status, we must start addressing new energy vehicles and its infrastructure issues now.