Vehicle electrification has the potential to enhance energy security and reduce carbon emissions through significant reductions in petroleum consumption. It also provides an opportunity to bring about sustainable economic growth and build new industries based on innovation and technological advancement. Governments can enable the widespread deployment and acceptance of electric vehicles (EVs) by pursuing a variety of smart and complementary policies, including the following:
- National deployment goals and strategies: Establishing a national goal for EV deployment provides governments with a concrete objective around which a credible deployment strategy can take shape. Such strategies may include the provision of demand- and supply-side incentives to help transform the market for vehicle electrification.
- Pilot cities: Vehicle and infrastructure demonstration projects, especially in urban areas, can help enable deployment by providing valuable information about how EVs and chargers are used in real-world scenarios. Pilot cities identify consumer usage, preferences, and experiences, as well as address the challenges to full-scale deployment, such as charging infrastructure optimization and impact on the electric grid.
- Sharing and coordinating public investment in battery and vehicle research, development, and demonstration: Facilitating the development of new technology solutions is critical for the long-term scale-up of EVs. The Electric Vehicles Initiative encourages information sharing among governments on public investments in battery and vehicle research, development, and demonstration, which enables the coordination of priorities and spreads the balance of risk and rewards associated with clean energy innovation. Additionally, private investment in innovative technologies relies on active public investment in basic research to bring technologies to the point of commercial viability.