Trends & Insight
June 16, 2022

Green Energy Cars and Infrastructure

The electric vehicle (EV) sector has continued to rapidly grow globally despite supply chain constraints that have impacted the commercial vehicle market during the pandemic. This is in part due to combined efforts worldwide to reduce carbon emissions and strive towards increased usage of renewable energy sources. The following article dives into how Europe and the US are investing in EV infrastructure and trends within the EV market.

Latest EV Green Tech in Europe and the US

The electric vehicle market is at the forefront of renewable, clean energy efforts all around the world today. Three types of electric vehicles are available on the consumer market: Battery Electric Vehicles (BEV) - powered solely by battery motor, Plug in Hybrid (PHEV)- uses both gas and electric power source, and Hybrid (HEV) - charges through braking or cruising. In the commercial vehicle market, consumers from all over are embracing these electric or hybrid models. In Europe, for instance, EV purchases are surpassing diesel cars for December 2021 [1]. Similarly in the US, new EV registrations increased by 60% in the first 3 months of 2022 alone [2].

Europe & US Commitments to Net Zero Transportation

The global market shift to electric vehicles is not a general trend, rather it’s a sustained effort from countries to commit to cut carbon emissions and strive towards net zero emissions. The EU aims to cut 55% of vehicle carbon emissions by 2030 [3]. In 2020, electric vehicle registrations accounted for 11% of newly registered passenger cars with Norway (75%), Iceland (46%), and Sweden (33%) accounting for the highest ratios of new EV registrations. Meanwhile, Germany, France, and the UK accounted for 60% of the total EV units registered [4]. In the UK alone, sales of fully electric cars have risen 70% thus far in 2022 [5]. At the same time in 2021, the US also pledged to reduce greenhouse gas emissions by 50-52% by 2030 and aims to reach net zero emissions by 2050 [6]. Despite supply constraints in the commercial vehicle market leading to an 18% decrease in growth for the US, battery electric vehicles more than doubled in numbers and now account for 4.6% of US market share in 2022 [7]. The commitment of achieving net zero emissions globally and transitioning to electric vehicles go hand in hand.

Growing EV Charging Infrastructure in Europe & US

The current infrastructure to support clean energy and the EV market is expanding rapidly. In the EU there is an average of 5 fast chargers per every 100 kilometres available for use by the public [8]. By 2030, the EU aims to have 2.9 million public charging points which would only require 3% of the €1.8 billion road and infrastructure budget [8]. Meanwhile, in the US there are approximately 46,000 charging stations in 2022 [9]. However, the electric vehicle infrastructure market size is projected to reach $49.14 billion by 2030 [10]. To keep up with growing infrastructure demand, the US aims to put $5 billion of federal funding into building charging stations along every 50 miles of interstate highways [11]. Such investments into charging infrastructure eases general consumer panic surrounding emerging EV technologies and further establishes commitment into sustainable energy infrastructure.

Shift Towards Other Renewable Energy Sources

The electric vehicle industry is not the only clean energy focus. General market strides are being made towards other renewable energy sources as well. Renewable energy and low emissions energy include wind, hydropower, solar, geothermal, biomass, to name a few.

In 2021, the EU added a record 36 Gigawatts of new renewable power capacity in 2021, 30% more than was added in 2020 [12]. The EU aims to reach a goal of 45% of renewable energy usage by 2030 [13]. In the US, 12.5% of annual energy usage came from renewable resources as well [14]. The wider focus on renewable energy sources as a whole can bring a positive impact on the climate and reduce harmful carbon emissions. Continued growth in green energy and infrastructure are not only current market trends but are also vital reforms to consider globally.

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