California Takes the High Road with Electric Vehicles
The new electrification goals for California are fast approaching, but are businesses moving fast enough?
California became the first state in the US to prohibit the sale of new gasoline-powered vehicles by 2035, influencing other states like New York to follow. The state has pledged separately to eliminate emissions from the power grid, which serves as the primary energy source for electric vehicles, by 2045. Many firms will feel the impact of this new legislation as California is one of the main centers for business in the US.
Are these companies getting ready in time? Do they have the necessary sense of urgency? Or will they maintain their denial until their Q1 financial report is delivered in 2036 and they are confronted by the Grim Reaper?
While EV sales in the United States still only make up about 6% of all new car sales, they exceeded 16% in California, a state that has long been a leader in EV adoption, in the second quarter. Automobile manufacturers will have to gradually electrify their new vehicle fleet, starting with 35% of 2026 models sold, up to 68% in 2030, and then 100% for 2035 models. The state sells 1.9 million vehicles in the US annually, accounting for around 12% of the market. Due to the movement’s strength, automakers are under pressure to electrify their lineups more quickly.
Although 2035 may seem far off to some, it is closer than you might imagine — in terms of reorganizing a business’s strategy and revamping its operations. It’s widely known that some companies merely promote sustainability to look good in the face of climate change, even though it isn’t one of their main priorities. Many firms make commitments without laying out a plan for how they intend to meet their sustainability goals. This legislation pushes companies to act more quickly, fulfill their commitments, and take concrete action. The timeframe for this legislation means there is no room for businesses to put their sustainability commitments on hold. Specifically, companies with fleets and those that depend on vehicle mobility for everyday operations must take immediate action and plan ahead. No one can ever be too prepared, especially with the deadline drawing near.
The possibility that many other states will follow suit could be another surprise in store. Since the 1960s, when California implemented laws limiting motor vehicle exhaust emissions, the state has been regarded as a leader in US environmental legislation. More than a dozen states followed its regulatory example on air quality. There is an underlying consensus when speculating which states will adopt California’s legislative model.
Businesses with nationwide operations should also take this into account. Companies based in California would eventually need to electrify their fleets in order to comply with the vehicle ban legislation. Once these electric fleets pass through regions lacking EV infrastructure, issues could occur. That should pressure the United States to build additional EV infrastructure around the country.
This regulation mandates companies to get behind the wheel of innovation leadership. Consumers choose brands that lessen their negative social and environmental impacts 88% of the time. Over-preparation has no adverse effects. History has demonstrated the detrimental impact of poor timing and preparation. Using Brexit as an example, businesses that ignored the issue later encountered several challenges since it was too late to take action. They faced challenges with the supply chain, unclear border tariffs, and a workforce shortage. Although initially transitioning seems awkward and unpleasant, it is a necessary and unavoidable task to undergo.
There is clear potential for expanding the e-mobility market space. E-mobility is more crucial now than ever. The fact that oil prices skyrocketed following Russia’s invasion of Ukraine highlighted how urgent it is for us to stop depending on the oil markets. Fully electric mobility in the future is inevitable. The time has come for businesses to realize this.
EVE offers analytics software that works directly with each vehicle to capture, analyze, and enhance data points to understand where an EV has been charged, what the associated costs were, and which emissions have been emitted in the process. EVE supports you in reaching your sustainability goal by electrifying your fleet faster and at a lesser cost.
For more info, contact us at HI@EVE-APP.EU or visit our Website www.eve-mobility.io.
EVE is an e-mobility intelligence company enabling organizations to transition to a more sustainable future and contribute to reducing emissions to achieve a net-zero economy. We provide cutting-edge technology-enabled tools to measure and optimize sustainability & e-mobility efforts for a clean future.
