This morning President Elect, Joe Biden announced the nominees and appointees of his Key Climate and Energy Team. This team will lead the effort to reduce America’s emissions, a key policy of the Biden election campaign.
Under the new plan, America will rejoin the Paris climate agreement. Biden says he wants america to lead the world on Climate Change, a bold statement considering other parts of the world like Europe have far stricter emission standards in industries like transportation.
Biden says they will set new emission standards for cars. Given the announcement of bans on the sale of new ICE vehicles we’ve seen from countries like the UK (2030), harsher regulations in the US, will ultimately force a faster transition to electric vehicles.
To support adoption of electric vehicles, Biden’s clean energy plan involves the deployment of 500,000 charging stations across America. It is estimated there is currently around 100,000 public places to charge, so this would be a 5x increase over the next decade.
China leads the world in charging stations, more than 500,000 public electric vehicle charging locations last year. There’s definitely a chicken and egg challenge with EVs, with the availability of charging locations a key influence on EV adoption. Private enterprise are often slow to roll out charging locations until there’s enough EV owners to fund the rollout, so having the Government help break out of that cycle, is definitely advantageous.
During the speech, Biden highlighted that the Government vehicle fleet is massive (around 250,000), which Biden says will transition to clean, electric vehicles, sourced from the American auto industry.
With China, Europe and America, all putting their foot firmly on the accelerator to transition their vehicles to EVs, it leaves Australia’s very passive position look incredibly weak on the world stage.
While Prime Minister Scott Morrison has repeatedly said we will meet and beat our Paris targets, that’s not really enough by today’s standards. With the transport sector making up a significant portion of Australia’s emissions, we’re not doing enough to accelerate the EV transition here at home.
Biden also spoke of EV incentives. If an American buys an electric vehicle, that is seen to be helping the cause, so the Government provides a rebate of up to $7,500.