EU races towards electric vehicle adoption with new CO2 limits for cars
The European Union (EU) is taking climate change very seriously. A recent vote in the EU parliament has seen new caps on carbon dioxide approved that, law makers hope, will spur on the trend towards electric vehicles, cleaning up roads and the atmosphere. Europe is not, of course, alone in encouraging the transition away from fossil fuels and towards electric vehicles. China and other major powers are following suit.
Chinese battery specialist and electric bus maker BYD has seen its share price gain 3% over the past 5 days
Source: Yahoo Finance
Compared to the 2021 limit previously set, Europe’s new 2030 limit will require a further reduction of 37.5%, if politicians want to meet their targets. That’s a significant cut, and no one expects it to happen all at once. Voting in Strasbourg, France, last Wednesday, the assembly put a 15% reduction goal in place for 2025. The proposal is set to undergo a “final adoption” on 15 April – but this is a formality. And the vote was a landslide in favour, with 521 voting for, and just 63 against. There were 34 abstentions.
Rapporteur Miriam Dalli told the press: “As Parliament, we strongly fought to safeguard the environmental integrity of the proposal and bring real health, consumer and innovation benefits to European citizens. We achieved this legislation, despite fierce opposition from the car industry and certain Member States, which refused to acknowledge the opportunities that stem from a more ambitious target.”
Around 15 million autos are sold in Europe annually, and they account for more than 10% of the bloc’s CO2 emissions. At the same time, electric vehicles currently command just 1.5% of the market. If lawmakers (and electric vehicle makers) get their way, that’s a number that’s set to rise dramatically over the coming decade!
Dominion holds BYD, a Chinese maker of electric vehicles and batteries that exports fleets around the world, including to Europe, in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.