Electric Vehicles: Driving 'Build Back Greener'
Photo Credit: UNEP
In order to 'Build Back Better' countries must harness low-carbon investment opportunities to revitalize economies while reducing their greenhouse gas emission. To Build Back Better means pulling people out of poverty and creating more jobs which sustain livelihoods; it means fostering resilience to shocks in the future like disease outbreaks and the detrimental impacts of climate change. Building Back Better also means 'Building Back Greener.' The ever-evolving COVID-19 pandemic has given new momentum to the need to respond to climate change.
A chorus of global voices, from the Pope to the head of the UN and the presidents of Germany, Austria and Switzerland, among many others, have pledged a 'green recovery.' Globally, GHG emissions fell by 8% or 2.6 GtCO2 in 2020. This decline in GHG emissions has been seen as a 'silver lining’ of the COVID-19 crisis, but estimates from the UN Environment Programme show that global GHG emissions must continue to fall 7.6% every year from 2020 to 2030 to keep surface temperature increases to less than 1.5°C above pre-industrial levels.
The high emissions emanating from the transportation sector contribute heavily to air pollution, producing 23% of global energy related CO2 emissions. Efforts to decarbonize this fossil fuels reliant sector will be essential to Building Back Greener during the ongoing COVID-19 recovery phase. The creation of the necessary infrastructure for mass adoption of electric vehicles (EVs) is an area where global leaders in the private and public sector might be able to Build Back Greener during this post COVID -19 reconstruction. While EVs offer an opportunity to produce reliable transportation with lower emissions, public transport, as well as cycling and walking infrastructure, must be explored and advanced as well.
Electric vehicles (EV), which include battery electric and plug-in hybrids, made up 7.2% of global car sales in the first half of 2021. 2021 was yet another record year for EV sales, with 5.6 million sold globally. That is 83% higher than 2020 and a 168% increase over 2019 sales according to BloombergNEF, a leading provider of strategic research on the pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. In a statement made shortly after the United Nations Climate Change conference in November 2021, Climate Group CEO Helen Clarkson declared that COP26 "marks the end of the road for the internal combustion engine. Today we’re seeing significant commitments from manufacturers, investors, fleet operators, countries, cities, states and regions."
Due to its environmental impacts, increasingly less expensive batteries and growing numbers of models offered by automakers, it is becoming increasingly popular for green transport stimulus investments to prioritize government incentives and charging infrastructure to advance EV adoption. Adoption of EVs has been shown to reduce GHG emissions, particularly in countries that have a high percentage of electricity generated from renewable energy, i.e. Norway, Iceland and Sweden. Internal combustion engines (ICE) under the hood of most conventional vehicles produce direct emissions through the tailpipe, as well as through evaporation from the vehicle's fuel system and during the fueling process. Conversely, EVs produce zero direct emissions. There are also significant air pollution reduction benefits associated with replacing ICE vehicles with EVs. These emissions reductions improve the overall quality of life and health outcomes in regions with high EV adoption rates.
Globally, USD86.1 billion in green transport spending was provided for COVID-19 recovery programs in 2020, with significant spending across numerous subsections of the transportation sector. The largest fraction of this spending was directed towards investments in EV subsidies (USD21.5 billion), with significant investments in existing public transport capacity expansions (USD20.5 billion) and EV transfer programs (USD11.0 billion). Smaller amounts were allocated to EV charging infrastructure (USD7.9 billion) and cycling and walking infrastructure (USD4.3 billion).
EV Adoption in Poland
Historically, the Polish government has been hesitant to join the rest of Europe in setting strong emissions reduction targets. However, shifting economic conditions for renewable energy and green transport are showing the beginning of a change in Polish climate action policy. During June 2020, The Polish government announced a USD2.1 billion green investment stimulus package. This stimulus package contained several policies designed to promote EV production and uptake. Poland is a major producer of passenger vehicles in Europe. However, as of 2019, only 0.5% of Polish-produced vehicles were fully electric, compared to 12% of Swedish vehicles, 4.2% of Chinese, and 4.0% of German. The government’s policies aimed to increase the cost competitiveness of EVs, position Poland as a leader in the EV market through both production and purchasing incentives in the near future.
The green stimulus policies include EV subsidies aimed at local governments, entrepreneurs, and individuals, as well as support for new electric public transport, taxis, and school buses. Production support for EV manufacturing and for charging stations are also included in the policy. Total EV-related spending from the package is expected to be PLN668 million (USD178 million). These policies are effective both in providing economic stimulus through job creation and strengthening Poland’s EV production and adoption into the future. The UN Environment Programme and the Smith School of Enterprise and the Environment at Oxford described Poland as a “current leader” in green recovery spending, alongside Finland, Norway, Denmark, Germany and France.
Massachusetts' Approach to EV Incentives
In spite of the numerous obstacles resulting from the COVID-19 pandemic, the Northeastern American state of Massachusetts is continuing to pursue its statewide transition to low/zero-carbon vehicles. As economies recover and all methods of transportation start to rebound from 2020-2021 disruptions, there is an inevitable return to ‘business as usual’, resulting in an increase in ICE cars on the road and an inevitable spike in transportation-related emissions.
To reduce the impact of this return to 'business as usual', Massachusetts has reinforced its commitment to electric vehicle transition through an expansion of the Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) program. The goal of the MOR-EV program, originally established in 2014, is to reduce air pollution levels and GHG emissions through individual purchases of electric vehicles. Offering a USD2,500 rebate to consumers who purchase a new electric vehicle, and a USD1,500 rebate for plug-in hybrids, the MOR-EV program incentivizes purchase of EVs by making these vehicles a more affordable, and therefore more obtainable, option. During June 2020, the administration of Governor Charlie Baker and Lieutenant Governor Karyn Polito expanded this rebate program beyond personal EV vehicles to include commercial and non-profit vehicle fleets.
MOR-EV is funded by the Executive Office of Energy and Environmental Affairs’ Department of Energy Resources and administered state-wide by the Center for Sustainable Energy. As of February 2021, 16,378 rebates have been granted, and USD33,296,700 in rebates have been reserved or issued. Through incentives to Massachusetts consumers, non-profits, and companies, the MOR-EV program demonstrates one way to bolster zero emission vehicle sales as the world emerges from the COVID-19 pandemic.
EV's Are Not a Panacea: Public Transit Has a Role in Building Back Greener.
The last decade has seen rapid development in green transport technology. Governments around the world can effectively support the transition from fossil fuels based transportation to low-and zero-carbon options through continued investments in EVs and green transportation infrastructure. Mobility restriction caused by COVID-19 have impacted transport practices around the world, especially in sizable urban centers. The pandemic's lasting impact on public transport demand is unclear, but a move towards de-densification of public transport services is needed to safely return to normal, pre-pandemic use. Particular attention should be paid to densely populated urban centers like Indian, Mexico and Columbia which historically and currently experience extreme levels of transportation congestion. These extreme levels of transport congestion are both highly polluting and expensive.
If an urban center already possesses a public transportation system, or is actively constructing one, fiscal stimulus investments could be used to increase the scale of electrifying the system. These investments could quickly create many jobs. Public transport investments also yield environmental and human health returns. Significant reductions in GHG emissions and air pollution can be observed when public transportation lessens ICE automobile transport. Electric and hydrogen-based public transport solutions also yield significant energy efficiency benefits. Evidence suggests that public transport is associated with increased safety relative to individual automobile travel. However, particular care and concern must be taken to ensure that public transport addresses safety issues. Gender-inclusive transport policies must be drafted alongside green public transport stimulus spending in order to address the disproportionate impact of restricted transit and safety of women and other gender minorities.
Sources and Further Reading
Funke, S. Á., Sprei, F., Gnann, T., & Plötz, P. (2019). How much charging infrastructure do electric vehicles need? A review of the evidence and international comparison. Transportation research part D: transport and environment, 77, 224-242.
O’Callaghan, B. J., & Murdock, E. (2021, March 10). Are We Building Back Better? Evidence from 2020 and Pathways for Inclusive Green Recovery Spendinghttps://www.unep.org/resources/publication/are-we-building-back-better-evidence-2020-and-pathways-inclusive-green. UNEP. Retrieved January 4, 2022, from https://wedocs.unep.org/bitstream/handle/20.500.11822/35281/AWBBB.pdf
Richter, F. (2021, February 19). Chart: Which countries have the most electric cars? World Economic Forum. Retrieved January 4, 2022, from https://www.weforum.org/agenda/2021/02/electric-vehicles-europe-percentage-sales/
Walton, R. (2021, November 12). Global EV sales rise 80% in 2021 as automakers including Ford, GM commit to zero emissions: BNEF. Utility Dive. Retrieved January 4, 2022, from https://www.utilitydive.com/news/global-ev-sales-rise-80-in-2021-as-automakers-including-ford-gm-commit-t/609949/