May 19, 2024

The IEA has released a report that shows a major increase in the adoption of electric vehicles this decade. This could be further accelerated if governments adopt policies aimed at achieving net zero goals.

According to a report released today by the International Energy Agency, the global auto industry had a tough year in 2020 due to the shock of Covid-19. However, the electric car market has bucked this trend, growing at a rate of more than 40%, and is set for a decade-long expansion.

According to the IEA Global Electric Vehicle Outlook 2021, despite a pandemic that triggered a series of economic recessions in 2020, a record number of new electric vehicles were registered, a 41 percent increase over the previous year. In comparison, the global automotive market shrank by 16% in 2010. The strong growth of electric cars has continued this year. Sales in the first three months of 2021 were nearly twice as high as they were a year ago.

The number of electric vehicles on the road worldwide increased by more than ten million last year. Another 1 million vans, trucks, and buses were also added. Last year, Europe became the world’s largest electric car market for the first time. In Europe, the number of electric car registrations has more than doubled.

Fatih Birol is the Executive Director of the IEA. He said, “Electric vehicles are essential to achieving net-zero emission levels worldwide. The current sales trends are encouraging, but we need to accelerate the market’s uptake in order to meet our climate and energy goals. The governments should be laying the groundwork for the rapid adoption of electric cars by investing in battery production and developing a reliable charging infrastructure.

The new IEA report shows that electric vehicles will grow significantly over the next decade. According to current policies and trends, the IEA projects that the number of electric vehicles, such as cars, vans, and heavy trucks, will reach 145,000,000 by 2030. The global fleet of cars could grow to 230 million if countries accelerate their efforts to achieve international climate and energy targets, as outlined by the IEA Sustainable Development Scenario.

The global fleet of electric vehicles would increase even further if governments from around the globe worked together to achieve the even more ambitious target of attaining net-zero emission levels globally by 2050. The IEA will release a special report on 18 May, Net Zero in 2020: A Roadmap for Global Energy Systems, that will provide more details about the implications of the path for electric vehicles as well as the broader transportation sector.

Last year, consumer spending on electric vehicles increased by another 50% to USD 120 billion. The government’s support measures were USD 14 billion. This is the fifth consecutive year that they fell as a percentage of the total expenditure. Even though government subsidies are still important to encourage the adoption of electric vehicles, this shows that the consumer’s choice drives sales.

In 2020, automakers will offer 370 electric car models. This is a 40% increase on the previous year. 18 of the 20 biggest automakers announced plans to increase the number of available models and boost the production of electric light-duty vehicles. These automakers are responsible for 90% of global auto sales.

Global Electric Vehicle Outlook 2021 states that governments have helped cushion electric cars against 2020’s downturn by extending current policy and fiscal supports and enhancing them with stimulative measures as a response to the COVID-19 crisis. The leading countries have also boosted the competitiveness of electric cars by strengthening fuel efficiency and emissions standards and redoubling their support for battery technology and charging station infrastructure.

The report highlights that the shift in the road transport sector to electric vehicles goes beyond cars. Two- and three-wheeled vehicles, such as mopeds and motorcycles, are the most electrified mode of road transport today. More than 25 million units have been sold, with the majority in Asia. The electrification of urban buses has also been rapid. Heavy trucks are another segment that has only recently seen strong growth in electric models, sales, and usage. This is due to the improved battery performance and longer driving range.

Electric vehicles can play a crucial role in the fight against emissions. Their net contribution, which is already visible today, to reducing carbon emissions will increase in parallel with the rate at which electricity production decarbonizes. Policymakers must consider global clean energy transitions holistically across all sectors. This will ensure that the progress made in one industry does not be undermined by failures in another.

The IEA has released a report that shows a major increase in the adoption of electric vehicles this decade. This could be further accelerated if governments adopt policies aimed at achieving net zero goals.

Launch webinar

Global EV Outlook for 2021

Explore the report

Reports are available for download

The Global EV Outlook, an annual publication, identifies and discusses the latest developments in electric mobility around the world. The Electric Vehicles Initiative members helped develop it. The report combines historical analysis and projections for 2030 to examine key areas such as the deployment of electric vehicles (EVs) and charging infrastructure, energy consumption, CO2 emission, and battery demand. This report contains policy recommendations that take into account the learnings from leading markets in order to inform stakeholders and policymakers who are considering policy frameworks for electric vehicle adoption.

 

Leave a Reply

Your email address will not be published. Required fields are marked *