Five factors determining global electric vehicles rollout – New Business Ethiopia

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Arcadis, in partnership with the World Business Council for Sustainable Development (WBCSD), has released its “Global Charging Infrastructure Market” report listing five factors determining global electric vehicles rollout.

The report covers 21 regions in the world and analyzes five parameters to determine the readiness of regions to invest in infrastructure to transition into electric vehicles (EVs).

The Netherlands, along with the UK or California, is consistently at the top of the list. These leaders set the tone for mass EV adoption with their well-defined strategies for EV infrastructure rolling out, strong tax incentives, increasing volumes of public charging points, and clearly defined strategies.

To transition to zero emission vehicles, countries will need to invest more in charging infrastructure as the global EV marketplace evolves. The report identifies 23 metrics that can be used to measure investment readiness across five parameters. These metrics were used to identify regions that are performing well and areas that could be improved.

These parameters are:

1. Government leadership and incentives

Global EV transition can be accelerated by policy changes and stricter environmental regulations.

Hong Kong is the leader in this area, offering tax exemptions and a ban on ICE cars, as well as penalty charges for driving in low emission areas without meeting required standards. It also has a net zero designation and a budget for charging infrastructure incentives greater than 0.08%.

2. Market maturity and readiness for Electric Vehicles (EVs)

To support sustainable investment in charging infrastructure, a region must have a mature EV marketplace. A mature market is defined by vehicle affordability, availability and ramped production.

Europe is leading the way, especially Norway and the Netherlands. Many South American countries, including Mexico, Chile, and Argentina, have room to improve, with a combined market share of less than 2% in EVs.

3. Returns potential

Utilization is key to stable returns, and it is important to get the balance right between too much infrastructure and low utilization, and under provided infrastructure versus too high utilization, creating “queues at the plug”. The price of electricity and fossil fuels can also affect the return potential.

China is the strongest of all the regions. Europe also performs well – particularly Spain, Norway, the Netherlands and Norway.

4. Infrastructure charging

Accessibility to charge points is an important factor in the transition from EVs. This means reliable charging at the point of departure (street garage or driveway), and at the destination (destination).

The Netherlands leads the charge, but New York State and California follow suit. Despite the low number of charge points, both states will benefit from a national strategy and reliable power networks. However, New York would benefit from increasing it’s ratio of public charge points, which is currently forecast to be more than 16 vehicles per charge point, compared with California’s ratio of 6-10 cars per point.

5. It’s easy to do business

Strong government leadership combined with a strong legal and regulatory system, and strong GDP per capita, shows potential and attractiveness to invest into a growing EV marketplace. The Netherlands, the United States and Singapore are all leaders in this table.

Simon Swan, Global New Mobility Solutions Director at Arcadis, said: “The Electric Vehicle market is moving quickly, with new charging hubs and technologies becoming available all the time. This transition must be accelerated to reduce emissions and limit the impact of climate changes. Widespread EV adoption is key, and even in slower to develop markets, there is progress.”

“This index is a snapshot in time, and regions will improve as they adopt new government incentives, increase their charging infrastructure or as the EV market matures. With clear leadership and the right policies, electric vehicles can play a crucial role in tackling the climate crisis,” says Simon Swan.

The Global Charging Infrastructure Market Report is an expansion of Arcadis’s 2021 Global EV Catalyst Index. The updated report features additional regions, including Norway, Turkey, Hong Kong and South America, and expanded metrics, with the inclusion of ‘ease of doing business’ and ‘returns potential’ categories.

The following regions were measured: Netherlands, UK. Germany. Norway. France. Ireland. Italy. Spain. Turkey. Canada. California. New York. China. Hong Kong. Singapore. Australia. Thailand. Chile. Brazil. Mexico. Argentina.

Source: newbusinessethiopia

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