France to ban all petrol and diesel cars by 2040
According to a new plan unveiled by France’s environment minister yesterday, the country is planning to ban all diesel and petrol cars by 2040. Nicolas Hulot said that this was part of newly elected President Emmanuel Macron’s vision for a carbon neutral France by 2050, and reaffirmed the country’s commitment to the Paris Treaty. This is an ambitious plan, and one which could change the automotive industry across Europe. Mr. Hulot said that it would put pressure on France’s car manufacturers, but that they already had projects in place which “can fulfill that promise”.
Mr. Hulot also said that France would stop using coal to produce electricity by 2022 and commit to $4 billion of investments into energy efficiency.
France joins other countries in planning to eliminate petrol and diesel vehicles. Norway and the Netherlands have previously claimed that they wish to make them illegal by 2025, and Germany and India have set dates of 2030. This pushes big names in the sector – individual companies like BMW and Volvo, but also components makers like Delphi Automotive and self-driving car companies like Google and Uber – to consider how a petrol and diesel free future can be accommodated.
About a month ago, reports broke that AGM batteries, widely used in aircraft in the 1980s, but potentially a power source for electric vehicles, were in increasing supply. With France’s commitment to green technology reiterated yesterday, it is a safe bet that this increasing demand will pick up pace in the near future.
Dominion holds a number of companies involved in the future of driving in its Global Trends Managed Fund. Most notably, Delphi Automotive is a market leader in the supply of electric car components and batteries.
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