IEA Global EV Outlook 2022: Key recommendations to accelerate EV uptake
The recently released Global EV Outlook 2022 by International Energy Agency (IEA) has outlined key trends and trajectories of the EV market and its supply chain worldwide. The report says that policy support and flood of new models underpin sales growth in major markets, but greater efforts are needed to anticipate supply chain bottlenecks and boost critical mineral production.
Electric car sales powered through 2021 and have remained strong so far in 2022, but ensuring future growth will demand greater efforts to diversify battery manufacturing and critical mineral supplies to reduce the risks of bottlenecks and price rises, according to IEA.
In this regard, the report puts forth some key recommendations to accelerate the uptake of EVs across the globe. They are as follows:
Maintain and adapt support for electric cars
As the electric car market matures, reliance on direct subsidies must decrease and eventually fade out. Budget-neutral feebate programs – which tax inefficient internal combustion engine vehicles to finance subsidies for low emissions or EVs purchases – can be a useful transition policy tool. Stringent vehicle efficiency and/or CO2 standards have promoted EV adoption in most leading EV markets and should be adopted by all countries seeking to hasten the transition to electromobility.
Kickstart the heavy-duty market
More heavy-duty electric models are available, and electric buses and trucks are becoming competitive on a total-cost-of-ownership basis across more and more applications. Policy-led deployment can help kickstart this sector. Zero emission vehicle sales mandates, purchase incentives and CO2 standards can all help speed up the transition.
Promote adoption in emerging and developing economies
Electrification of road transport in emerging and developing economies should prioritize two/three-wheelers and urban buses, as these vehicle types are most cost competitive. Price signals and charging infrastructure availability can also help the economic case for electrification.
Expand EV infrastructure and smart grids
Governments should continue to support deployment of publicly available charging infrastructure at least until there are enough EVs on the road for an operator to sustain a charging network. Continued government support, either through regulations requiring the building out of charging stations or through fiscal policies and support, should ensure equitable access to charging for all communities to ensure that nobody is left behind in the transition.
Incentivizing and facilitating the installation of home chargers in existing parking spaces is important. Mandating EV charging readiness for new buildings can help. At the same time, local authorities should support the installation of chargers in existing buildings. Co-ordinated plans on grid expansion and enhancements, including digital technologies to facilitate two-way communication and pricing between EVs and grids, are needed now to ensure that EVs can become a resource for grid stability rather than a challenge.
The Global EV Outlook annual series is the flagship publication of the Electric Vehicles Initiative (EVI). It is dedicated to track and monitor the progress of electric mobility worldwide and to inform policy makers on how to best accelerate electrification of the road transport sector.
The EVI is a multi-governmental policy forum established in 2010 under the Clean Energy Ministerial (CEM). Recognising the opportunities offered by EVs, the EVI is dedicated to accelerating the adoption of EVs worldwide.
To do so, it strives to better understand the policy challenges related to electric mobility, help governments address them and to serve as a platform for knowledge sharing. The International Energy Agency serves as the co-ordinator to support the EVI member governments in this activity.