Consumer Discretionary

Electric Vehicle And Net Zero Carbon Future

<p style="text-align: justify;">Well, if you build a car that runs on electricity, people will come to use it.</p><p style="text-align: justify;">It's a big debate these days:</p><ul style="text-align: justify;"><li>Are EVs zero-emission vehicles?</li><li>Is the process from procurement to production eco-friendly?</li></ul><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Characteristics of Electric Vehicle</span></h2><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><strong>Lower Carbon Emissions</strong></p><p style="text-align: justify;">EVs emit no emissions at the tailpipe. Using an electric vehicle instead of one with an Internal Combustion Engine (ICE) completely removes any direct emissions.</p><p style="text-align: justify;">This has a significant positive impact on our air quality, particularly in major cities. The fact that EVs produce 15% more emissions during production than gasoline-powered vehicles does not change the fact that they produce less CO2 while in use. However, this is the reason there is already a movement to employ recycled components to reduce the lifecycle emissions of electric vehicles.&nbsp;&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><strong>Energy Efficient</strong></p><p style="text-align: justify;">To meet the environmental goals from manufacturing to end-user, embodied energy emissions from EVs are significantly more crucial. Electric cars waste less energy, especially when driving around town. An electric motor is simply more efficient than an internal combustion engine, so more energy from the battery is used to power the car.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><strong>Lower Air Pollution</strong></p><p style="text-align: justify;">There are also no tailpipe emissions of air pollutants such as nitrogen oxides and particulate matter. Particles from braking and tire wear are still produced, but overall, less than petrol and diesel vehicles.&nbsp;<br />From a health point of view, the main benefits are related to air quality.</p><p style="text-align: justify;">There is still some air pollution from the electricity supplied to electric vehicles, but this can typically have better pollution control than implemented in conventional vehicles and is usually generated away from populated areas.</p><p style="text-align: justify;">Electric vehicles can also reduce noise, especially at low speeds, and are quieter than conventional vehicles.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">EV as Zero Emission Vehicles</span></h2><p style="text-align: justify;">To know EVs are net zero, we need to learn embedded energy emissions scenarios. For instance, even in the worst case, an electric vehicle powered by a battery made in China and driven in the UK still emits 22% less CO2 than a diesel vehicle and 28% less than a gasoline vehicle.</p><p style="text-align: justify;">In a best-case scenario, an electric vehicle with a battery made in Sweden and used in Sweden emits 80% less carbon dioxide (CO2) than a diesel vehicle and 81% less than a gasoline vehicle. With a note that 58% of power generation in Europe is already carbon neutral. And things keep getting better and better, thanks to the EU grid using more and more renewable energy, electric automobiles will reduce CO2 emissions by a factor of four by 2030.</p><p style="text-align: justify;">No car is 100% clean. The advent of electric vehicles will not change that.</p><p style="text-align: justify;">Our point is that if you really must use a car, an electric car is a better choice for the environment.&nbsp;<br />A car is still a car. Replacing it with another type will not solve traffic problems such as congestion. You may also need to understand your life cycle emissions. Comparing life cycle emissions, on average, electric vehicles emit almost one-third as much CO2 as comparable gasoline or diesel vehicles.</p><p style="text-align: justify;">Energy such as solar or wind power is generated and can be operated without emissions. Recharging a car with electricity from a local power plant powered by fossil fuels does not result in zero emissions. 93% of the EU population can charge their vehicles with 100% renewable electricity.</p><p style="text-align: justify;">The overarching goal of a fully low-carbon civilization is to:</p><ul style="text-align: justify;"><li>Reduce energy emissions from electric vehicles</li><li>Increase use of public transport</li><li>Encourage eco-friendly lifestyle choices&nbsp;</li></ul><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Steps Towards a Net Zero Vision</span></h2><p style="text-align: justify;">Only electric vehicles can be purchased after 2030 or 2040 in major countries of the world. It also aims to phase out all fossil fuel-based commercial and logistics vehicles in all cities.</p><p style="text-align: justify;">Government support is needed to create a legal and regulatory framework that ensures the extraction of raw materials and distribution of EV components worldwide in an economical, environmentally friendly, and energy-efficient manner. And while most charging occurs at home or work, public charging point offerings have outstripped EV sales.</p><p style="text-align: justify;">European Parliament and Council ensuring all new cars and vans registered in Europe will be zero-emission by 2035; Middle East each has its own net zero visions and targets, KSA2060, OMAN2040 and carbon neutrality 2050, UAE 2050, Bahrain 2050.Qatar 2030.</p><p style="text-align: justify;">A successful net-zero transition will require no country, region, or community to leave behind and move quickly despite the hurdles. To reach our goal, we must act now. Businesses, consumers, governments, regulators, and the financial industry must collaborate to develop sustainable solutions, technologies, and infrastructure.</p><p style="text-align: justify;">For power storage in general and EVs, many businesses are still working to enhance batteries. As batteries improve, EVs will likely use newer, better batteries.</p><p style="text-align: justify;">Other elements of EV charging, including the charging ports, are evolving in addition to increased EV battery capabilities. The software within EVs is growing in strength.</p><p style="text-align: justify;">Vehicle-to-everything (V2X) technology, also known as V2G technology, is one of the most promising software features in new and emerging EVs. We need to raise awareness, prepare our communities through open data, prepare for climate change and let them know that their small steps can make a big difference.</p><p style="text-align: justify;">Of course, if this is properly implemented and communicated to communities, the supply and demand for a sustainable world will move towards net-zero emissions at best.</p><p style="text-align: justify;">Well, there is nothing called low emissions. There are only net zero emissions. To achieve that, we can't wait for Armageddon to come and destroy us. Society and communities have net zero emission goals. There will likely be a ripple effect as we strive to achieve.</p><p style="text-align: justify;">We must act as a society, not just rely on government policies on how to care for our planet and behave, while it is difficult to predict the increase in EV ownership with certainty.</p><p style="text-align: justify;">I am confident that it will gradually increase given the likelihood that gas prices will remain high, EV charging infrastructure will continue to grow, batteries will continue to advance, and EV prices will continue to decline. As they gain popularity, EVs will begin to appear on the used car market.</p><p style="text-align: justify;">Additionally, those looking to buy an EV will have more options. And you won't start to see more EVs on the roads. Electric boats, aircraft, and individualized electric flying machines are all under development.&nbsp;<br />Electric is undoubtedly the form of transportation of the future.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><br /><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="" target="_blank" rel="noopener">Adeel Irshad</a></em></span></p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Adeel Irshad</span></h3><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">1. How fast is the EV charging network growing? </span></h2><p style="text-align: justify;">The global Electric Vehicle (EV) charger market reached USD 7.01 billion in 2021 and is anticipated to rake up USD 64.67 billion by 2030.&nbsp;</p><p style="text-align: justify;">Several factors, including soaring sales of electric vehicles around the world, increasing demand for zero-emission vehicles, and expanding government initiatives to encourage the adoption of electric vehicles, are expected to contribute to the global EV charger market's explosive growth in the ensuing years.&nbsp;</p><p style="text-align: justify;">Global demand for EV chargers is anticipated to increase as a result of technological advancements in the electric vehicle and charging infrastructure, including ultra-fast chargers, portable charging stations, load management with smart charging, automated payment systems for charging, and bi-directional charging.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><img style="display: block; margin-left: auto; margin-right: auto;" src="" width="585" height="286" /></p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. What is the future of zero-emission vehicles?&nbsp;</span></h2><p style="text-align: justify;">The Net-Zero by 2050 scenario requires that sales of new passenger vehicles (cars, SUVs, and vans) reach 31% in 2025, 64% in 2030, and 100% by 2035 for the global economy to be on track for net-zero emissions by mid-century. Electric vehicles could outsell gas cars by 2040.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><img style="display: block; margin-left: auto; margin-right: auto;" src="" width="569" height="849" /></p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">There is a rising political and economic desire to switch to EVs as EV sales have increased significantly in recent years. Of course, EVs now make up a sizable and quickly expanding portion of the private transportation sector. In 2020, EV and hybrid vehicle sales in Europe will account for more than 10% of total vehicle sales.&nbsp;</p><p style="text-align: justify;">In my opinion, Europe will electrify the fastest and, in terms of EV market share, will continue to lead the world in electrification. Europe is a regulatory-driven market with favorable consumer demand trends. Several nations have already announced an end to ICE sales by 2030, in addition to the European Commission goal, which calls for approximately 60% EV sales by 2030.&nbsp;</p><p style="text-align: justify;">In keeping with this, seven OEM brands have committed to selling only EVs within the European Union by 2030. The most likely accelerated scenario predicts that consumer adoption will surpass regulatory goals and that Europe will hold almost 75% of the global EV market by 2030. By 2035, new cars must have zero emissions, according to the European Union.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. What are the government's initiatives toward developing electric vehicle technology?</span></h2><p style="text-align: justify;">Governments in developed and developing countries, including Canada, Japan, and India, are providing subsidies to consumers to encourage the use of electric vehicles.&nbsp;</p><p style="text-align: justify;">For the purchase of electric vehicles in Canada, the Canadian government offers a subsidy of about $3,700 USD. Furthermore, the Japanese government grants subsidies of about US$3,700 for BEV purchases and about US$1,800 for PHEV purchases.&nbsp;</p><p style="text-align: justify;">At COP26, 24 nations and a group of automakers agreed to phase out fossil fuel-powered vehicles by 2040, and 30 nations have committed to working together to make zero-emission vehicles the new standard by making them widely available, reasonably priced, and environmentally friendly in all regions by 2030 or earlier.&nbsp;</p><p style="text-align: justify;">Also, the EU approved an effective ban on new fossil fuel cars from 2035. Carmakers must achieve a 100% reduction in CO2 emissions by 2035, making it impossible to sell new fossil fuel-powered vehicles in the 27-country bloc.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><img style="display: block; margin-left: auto; margin-right: auto;" src="" width="623" height="232" /></p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">4. What is the next big battery technology?&nbsp;</span></h2><p style="text-align: justify;">EVs use lithium-ion batteries, which have been around for a long time and are used in many other things like laptops and cell phones.&nbsp;</p><p style="text-align: justify;">They are cheaper than gasoline-powered cars and can go further between charges. Lithium-ion batteries are also being used in new ways, such as storing electricity on the grid to help balance out wind and solar power.&nbsp;</p><p style="text-align: justify;">I think Sodium-ion batteries have a lot of potential because they are energy dense, non-flammable, and work well in colder temperatures but may not improve performance. Sodium is also cheap and plentiful so sodium-based batteries will be more environmentally friendly than lithium-ion batteries.&nbsp;</p><p style="text-align: justify;">However, there are some limitations to sodium-ion batteries, but these are about to change. Early battery technologies will help make electric vehicles more popular, making them a bigger part of the overall market sooner than many think.&nbsp;</p><p style="text-align: justify;">Future electric vehicles arriving after 2025 could switch to sodium-ion or lithium-sulfur battery cells, which could be up to two-thirds cheaper than today's lithium-ion cells.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><img style="display: block; margin-left: auto; margin-right: auto;" src="" width="693" height="481" /></p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>
KR Expert - Adeel Irshad

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