Want a cleaner, greener, world? China’s electric buses might be the answer
According to Bloomberg New Energy Finance (BNEF), Chinese buses may be the key to a greener world – assuming, that is, that they continue to transition to electric. BNEF posted a report this week that detailed the impact “China and its bus fleet” was having on the oil industry: by the end of this year, “a cumulative 270,000 barrels a day of diesel demand will have been displaced by electric buses, most of it in China.”
And, although the report doesn’t note this itself, it is worth noting that even the displacement occurring in other countries may have originated in China, as BYD – the country’s electric bus and battery expert – has taken to exporting whole fleets to Europe and South America.
At time of writing, BYD’s share price is exactly flat so far this year – its business, however, is booming
Source: Yahoo Finance
Bloomberg notes that – despite a plethora of headlines – all the world’s other electric passenger vehicles combined (such as personally-owned electric cars, or electric vans operated by businesses) barely account for a third of the impact that China’s electric buses are making. Why are buses so effective? Well, because (in comparison to most other vehicles) they’re massive, and spend all day on the go!
Even taken together, however, electric vehicles are barely denting the oil industry, displacing about 3% of oil demand growth since 2011. As a number of countries commit to restricting petrol and diesel vehicles and mandating more environmentally-friendly forms of transport over the coming decades, that may well change. BNEF says that electric vehicles may displace as much as 6.4 million barrels a day of demand, and “fuel efficiency improvements will erase another 7.5 million barrels a day.” Good news for the environment, as well as investors in Dominion’s Global Trends Managed Fund.
Dominion holds BYD in its Global Trends Managed Fund.
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