Do cleaner vehicles need the Paris Agreement?

6/7/2017

By: Shannon Walker & Leanne Sun

The Paris Agreement 101

In November 2016, 195 countries agreed to make a global effort to reduce emissions from 69 to 56 gigatons by 2030 and limit global warming to less than 2 degrees celsius. This monumental accord, known as the Paris Agreement, is the first climate accord that both the US and China agreed to for world-wide success. Each country has its own individual and collective goals to partake in the agreement such that the US planned to reduce its emissions by 26%-28% by 2025, China intends to reduce its carbon intensity by 60–65% by 2030, and the European Union aims to reduce its greenhouse gas emissions by 40% by 2030.

On June 1, 2017 President Trump announced that the US will withdraw from the agreement in an effort to “save the economy and secure jobs”. He claims the initial agreement was founded on unfair environmental standards towards American businesses and its workers.

Trump expressed willingness to re-negotiate a deal with other foreign leaders from countries including Italy, France and Germany. However, these countries’ leaders responded with a joint statement explaining, “that the Paris Agreement cannot be renegotiated since it is a vital instrument for our planet, societies and economies.”

Source: https://www.climateinteractive.org/analysis/us-role-in-paris/

What does this mean for the United States?

The recent decision to pull out of the Paris Agreement was not surprising given the current President’s prior actions. The Federal Clean Power Plan is the main tool the US has to meet its commitments to the Paris Agreement and months ago he already signed an Executive Order on Energy Independence that called for a review of the Clean Power Plan and rescinded several of Obama’s executive orders related to climate change. Overall, the president’s recent decisions regarding climate change policy have received backlash from US citizens, the international community, and even the big businesses he is trying to protect.

What will change for the United States? And perhaps more importantly, what will remain the same, ignoring the need for swift action to combat climate change.

To answer these questions let’s imagine a worst-case scenario, where the federal government takes a completely hands-off approach to climate change. This leaves the majority of power in the hands of state/municipal governments and other private forces, many of which remain steadfast to their commitments to fight climate change despite the lack of federal backing.

For example, California, New York, and Washington will continue to uphold their commitments to the Paris Agreement and already have a variety of statewide policies in place to drive cleaner energy technologies. In addition, 29 states have mandates to increase their use of renewable energy, and these standards will remain regardless of the fate of the Clean Power Plan.

Apple, Amazon, Lyft, and Spotify are all part of a campaign recently launched by Michael Bloomberg called “We are still in.” The campaign allows American parties to pledge their commitment to the Paris Agreement and already hundreds of businesses, investors, universities, and prominent government officials have joined.

The silver lining here is that states, municipalities, and private companies are where the majority of our greenhouse gas emissions come from. So with many of these parties pledging to uphold environmental policies, we can confidently say our nation as a whole will continue to make significant progress towards climate change mitigation, despite implementation of these policies at a federal level.

What does this mean for the electric vehicle (EV) industry?

Again, let’s assume no federal influence here. Are a combination of statewide, private, and general economic forces enough to bring about the level of EV adoption that we know is needed to combat climate change? At EVmatch, we’re going to say yes, and here’s why:

1. Rebates. Already 15 US states provide incentives for their residents to purchase an EV and/or EV charging equipment, and these rebates are on the scale of thousands of dollars per vehicle.
2. EVs are cheaper over their lifetime. Driving a Nissan Leaf over a conventional vehicle or even a traditional hybrid (think Toyota Prius) saves you roughly $7,000 over the lifetime cost of the vehicle.
3. The technology is only getting better. 2017 was a big year for EVs with the release of the Chevy Bolt, arguably the first electric model for the mainstream consumer. 2018 will be equally enthralling with the release of the Tesla Model 3, and a variety of other electric models that are all projected to have over 200 mile range on a single battery charge and cost below $40k.
4. Well, it’s already happening. Monthly US car sales for plug-in vehicles have beaten last year’s sales for the past 20 consecutive months.

Now of course this is a snapshot of today’s EV marketplace, and this could change over time if policies don’t help drive increased innovation and consumer adoption. But for the next year’s vehicles, the investments are already in — meaning automakers are already depending on the increased adoption of EV technology. When environmental benefit comes packaged along with a benefit for your wallet and an overall better driving experience, it’s an easier switch than ever to go electric.

What can I do to fight climate change?

Even though we’ve concluded things will still move in a positive direction despite setbacks at the federal level, the speed of that movement remains in question. And unfortunately for an issue like climate change, we have to act aggressively NOW to prevent irreversible damage years down the line. Here are a few things you can do to show your support for fighting climate change at the federal level:

• Attend or even host an Action on Climate Rally
• Get your company, university, or organization to register for the We Are Still In movement
• Donate to environmental non-profit organizations such as 350.org or the Sierra Club
• If you’re an investor, invest in companies whose mission supports the clean energy economy
• Make personal everyday decisions to minimize your environmental footprint like taking public transportation, and carpooling
• Switch to driving electric — EVmatch can help you find a EV charging that meets your driving needs!

Thanks for reading and please leave thoughts/comments below.