National Policy Plays a Key Role in Achieving the Electrification of Mobility

In a panel discussion at Reuters Mobility 2021, Guidehouse explains how the public sector can incentivize private companies to invest and create profitable, zero emission, mobility solutions

Sustainable multi-stakeholder buy-in is vital to decarbonizing mobility. With the Biden Administration’s executive order directing the federal government to reach 100 percent zero-emission vehicle (ZEV) acquisitions by 2035, including 100 percent zero-emission light-duty vehicle acquisitions by 2027, the public sector is playing a key role in tackling the climate crises.   

In the panel discussion at Reuters Mobility 2021, Ajay Chawan, associate director at Guidehouse, discusses the role of national policy in driving the technology advancements needed to reduce emissions.

National policy provides an element of certainty,” Chawan said. “If there is policy that establishes the rules of the playing field, it enables stakeholders to act accordingly—specifically, to make investments in that direction.

During the discussion, he cites two examples that serve as guideposts to the industry: the IRC 30D tax credit for electric vehicles and the Department of Energy (DOE) ReCell Center for the recycling of lithium-ion (Li-ion) batteries. The tax credit is used by automakers to model how many vehicles they can get onto the road. The DOE’s program provides direction in technology advances to demonstrate the feasibility of the entire Li-ion battery recycling market.

“If policy makers can lead by example, they provide assurance to the market that ‘this is the direction we are going’,” Chawan said. “A great example of this is the electrification of the Federal Government’s fleet.”

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