NEED FOR AN EV REVOLUTION – Tackle vehicular pollution in pursuit of the global goal of achieving net zero emissions by 2050 (One of the major goals of the Paris Climate Accord signed in December 2015, is to reduce GHGs by limiting temperature rise to 1.5 degrees Celsius or 2 degree Celsius above pre-industrial levels by 2050)

WHAT IS SEEN

Transformation in vehicle sector with policies and incentives aimed at promoting electric cars to replace fossil fuel driven cars

According to the Global EV Outlook 2023 report released by the International Energy Agency (IEA)

• Global EV stocks rose from zero in 2010 to 26 million in 2022
• China alone accounting for almost half of the EV stocks
• China and Europe comprised 85% of global electric car stocks in 2022, followed by the US with 10% share
• Globally, about a fifth of all car sold in 2023 were electric cars
• In emerging and developing economies such as India, Indonesia, and Thailand, sales of electric cars have lagged
• In Thailand, about 3% of total car sales in 2022 were electric whereas in India and Indonesia, their share was only 1.5%
• India has one of the highest number of two and three-wheeler registrations globally.
• Over half of three-wheeler registrations in India in 2022 were electric
• Growing popularity of EV 3 wheelers stems from incentives provided by the government, lower lifecycle costs and cost-effectiveness compared to conventional gasoline-based models
• The report notes that EV and component manufacturing in India is ramping up due to the government’s $3.2 billion incentive programme, attracting investments totalling around $ 8.3 billion
• Policy incentives, such as subsidies, tax benefits, production incentives, tightening emission standards, and expansion of electric charging infrastructure account for these trends
• Public spending, in the form of subsidies and other incentives for shifting to EVs was estimated at $30 billion in 2021
• SUVs and large cars dominated the electric car options in 2022, with over 60% of the electric car options in China, Europe, and the US are SUVs
• Cheaper models from China and emerging markets such as India will make them affordable for larger sections of the population
• About 500 models of EVs were available in the global market in 2022, double that in 2018
• The commercial vehicle stock is also changing with a growing share of EVs
• In 2022, nearly 66,000 electric buses and 60,000 medium and heavy-duty electric trucks were sold worldwide
• In Finland more than 65% of buses sold in 2022 were electric ones

Carbon mitigation benefits of electric cars

• Tailpipe Emissions: Electric vehicles (EVs) produce zero tailpipe emissions. Unlike conventional vehicles that burn gasoline or diesel, EVs powered by electricity generate no direct emissions during operation, leading to lower levels of greenhouse gases, such as carbon dioxide (CO2), being released into the atmosphere.
• Source of Electricity: The overall emissions associated with electric cars depend on the source of the electricity used to charge them. However, even when charged with electricity from fossil fuels, EVs can be more energy-efficient than traditional vehicles, leading to lower net emissions.
• Higher Efficiency in Electric Motors: Electric motors are generally more energy-efficient than internal combustion engines. They can convert a higher percentage of the electrical energy from the grid into the kinetic energy that propels the vehicle, reducing overall energy consumption.
• Promoting Renewable Energy Integration: As the electricity grid shifts toward renewable energy sources such as wind, solar, and hydropower, the environmental benefits of electric vehicles increase. Charging EVs with electricity generated from renewable sources significantly reduces their carbon footprint.
• Reduced Life Cycle Emissions: While manufacturing electric vehicles requires energy and resources, studies suggest that the overall life cycle emissions of electric cars, including manufacturing and end-of-life considerations, can be lower than those of traditional vehicles, especially as cleaner technologies and manufacturing processes are adopted.
• Market Incentives: The growing popularity of electric cars has led to increased research and development, resulting in more energy-efficient technologies and a greater focus on sustainability across the automotive industry.
• Advancements in Battery Efficiency: Ongoing advancements in battery technology, including increased energy density and improvements in manufacturing processes, contribute to reducing the environmental impact of electric vehicles.
• Local Air Quality: In addition to mitigating carbon emissions, electric cars contribute to improved local air quality, as they produce no tailpipe pollutants such as nitrogen oxides (NOx) and particulate matter, which can have health implications

AS NOTED BY REPORTS

• In 2022 conventional SUVs based on internal combustion engines emitted over one gigatonne (Gt) of CO2 emissions, which is greater than the 80 metric tonnes of net emission reductions from EVs that year
• However, battery-based electric SUVs need two to three times larger batteries than small cars and hence more critical minerals for their manufacture.
• A 2021 World Bank study on The Global Diffusion of Electric Vehicles-Lessons from the First Decade authored by Shanjun Li and others observed that availability of charging infrastructure and smart grids, critical mineral resources such as lithium, cobalt, nickel, graphite, and rare earths essential for making batteries constrain the rapid expansion of EVs
• Reducing the development and manufacturing costs of EVs compared to conventional vehicles will also help accelerate the pace of EV adoption.

CONCERNS IN EV

1. Limited resources – EVs depend on critical minerals, which will accelerate the search for and mining of these scarce minerals
2. Waste disposal – With the expected rise in battery production to support the growing EV sector the disposal of used batteries will aggravate global contamination
3. Dominance of China – The EV supply chain and manufacturing is dominated by China. In 2022, China alone accounted for 35% of exported electric cars. Many countries have been trying to upgrade domestic capability in manufacturing batteries and EVs

CONCLUSION

India announced a production linked incentive to boost domestic production of batteries and EVs. A number of taxi companies such as Uber and Ola, and car makers like Tesla and VinFast (a Vietnamese Company) have announced their investment plans to manufacture EVs and batteries in India

The transport sector faces complex challenges requiring a multi-pronged approach. The IPCC report notes that solution pathways must focus on demand and supply chain management, decarbonisation, smart mobility solutions and reducing fuel subsidies. Shifting to more efficient and low carbon transportation such as EVs, metros, using advanced battery technologies, sustainable biofuels and low emission hydrogen can enable deep emission cuts in land, sea, and aviation-based transport sectors.