Program Updates
Innovation and Policy Drive the Zero-Emission Movement
Over the last month, Drive to Zero team members have traveled the world and engaged with countries and stakeholders doing incredible work to decarbonize transport. Last week, I spent time in California with partners and allies from across the globe who shared stories of progress, and it’s exciting to see advancement in critical areas, particularly at the policy level. Here are some highlights from the road:
- In India, we saw the launch of the NITI GearShift Challenge, which is part of e-FAST India. Electrifying India’s trucking sector presents a transformative opportunity to reduce emissions, improve air quality, and enhance energy security. The GearShift Challenge invites students, academics, and transport service practitioners to imagine business models that address the key barriers to truck electrification: high upfront costs, developing a robust charging infrastructure, optimizing technology, and navigating regulatory barriers. Along with prize money, recognition, and mentorship opportunities, participants will compete to be part of the solution to a more sustainable future in India. So far, the Challenge has attracted over 3,000 registrants and participants across sectors, and the first round of submissions is officially open. NITI Aayog sponsors this innovative program in partnership with Smart Freight Centre India, Drive to Zero, and WRI India, and in collaboration with the Operations Management Club of IIM Bangalore as part of Vista.
- The transition to zero-emission transportation goes hand-in-hand with equitable job creation. At its Lancaster, CA facility, Chinese manufacturer BYD has the world’s first automotive apprenticeship program for women, African Americans, veterans, and previously incarcerated individuals. The Industrial Manufacturing Technician Apprenticeship program provides job training on the technical side of zero-emission transport, building skills such as safety training, blueprint reading, manufacturing concepts, and emerging trends in manufacturing. The initiative is co-led by BYD, SMART Local 105, and Antelope Valley College.
- Regulations around vehicle imports have led to impactful developments in Indonesia. Significant tax incentives are now being offered for ZEV imports, and those incentives are tied to ZEV manufacturers establishing local production. Import duties and luxury goods sales tax will be waived for any built-up ZEVs – but not parts – sent to Indonesia by manufacturers making or renewing investments into ZEV plants. The new policy however regulates import volume, which is limited by the manufacturer’s investment in those plants. Policymakers hope this incentive will bolster the ZEV market in Indonesia, where an abundance of nickel and cobalt reserves could spur crucial economic growth tied to battery production.
- Over recent years, we’ve seen a handful of countries, the European Union, and several US states pass legislation to transition to 100% ZEV sales by dates ranging from 2025 to 2050. The latest to join this movement is Ethiopia, which recently began this transition effective immediately. This makes the country the first to implement such a law. The announcement from Ethiopia’s Transport and Logistics Ministries also highlighted the prioritization of building out charging infrastructure to support the transition to decarbonized transportation. This is the most recent stride in Ethiopia’s march toward a zero-emission way of life. In 2022, the government established a 10-year plan to import at least 4,800 electric buses and nearly 150,000 electric cars.
One common thread in these examples is the critical need for innovation that supports an accelerated transition to a ZE future. The intersections with academia and workforce development are amazing to see, and I applaud the centering of the communities most impacted by the climate crisis in the examples from India and BYD.
Most vital to the transition to decarbonization is the role of policy. By establishing specific compliance requirements inclusive of scope and timeline, policy creates market certainty, spurring investment and enabling the alignment of stakeholders across the ecosystem. Whether it’s mandating ZE trucks in California, fuel efficiency standards in the US, or CO2 regulations in the European Union, policy – particularly supply-side regulation – stimulates markets and movement. Based on Drive Electric analysis and IEA Global EV Outlook sales data, 99% of ZEV sales occurred in markets with supply-side regulations. That’s a correlation that is hard to ignore.
I’m encouraged by the progress I see in all corners of the world. Each step taken shows stakeholders at every level – government and private sector – that faster adoption of ZE is not only possible but happening. As the Drive to Zero team continues our pursuit of goals set forth by the Global MOU to help achieve carbon neutrality by 2050, we call on our current and prospective signatories and endorsers to apply lessons learned, use their voices and influence, and commit to the ingenuity and policies that will enable a cleaner global community. You are the lights guiding the way.
Stephanie Kodish, Global Director, CALSTART / Drive to Zero
Industry News
Belgian elections: The future of electromobility amid the “political earthquake”
Following June elections, Belgium – a Global MOU signatory – is seeing its next federal government take shape. One critical issue of debate is how to chart the path to electromobility.
Renewed energy: the French left’s surprise victory gives eMobility a breath of fresh air
The New Popular Front achieved a surprising win in the second round of recent French parliamentary elections. Infrastructure and production capacity for ZEVs are elements of the NPF’s plans for industrial reconstruction.
Milence expands into Italy with the construction of a charging hub in Bagnolo San Vito
After broadening its network of charging hubs in Benelux, France, Germany, and Sweden, Global MOU endorser Milence is starting construction on a new hub in Italy. Milence is partnering with Daimler Truck, TRATON GROUP, and Volvo Group on this expansion.
The Netherlands: Subsidy Scheme for Private Charging Infrastructure at Companies published
Global MOU co-lead The Netherlands will launch their new subsidies for charging infrastructure in September. The subsidies will reimburse a percentage of costs related to installation, batteries, and consulting fees associated with new charging stations.
Study reveals 1,000 MCS charging stations will be sufficient to power eTrucks in Europe
Recent research from Fraunhofer ISI and Amazon shows that 91% of truck traffic could be powered by 1,000 charging points in Europe. The study surprised some as the numbers came in lower than what has been mandated by the EU.
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