EV Sales Won't solve Climate problem -Most Important Climate News-5/7/24

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A deal between two Chinese EV companies has strengthened their ability to compete in China, and increased the threat that a large number EV models will eventually appear in the EU and US. According to Reuters, “China electric vehicle maker Nio has struck a deal with larger rival BYD to source batteries for an EV brand priced at a lower range that aims to compete with Tesla, three sources with direct knowledge of the matter said.” Climatecrisis247 believes that Nio is among the strongest EV companies financially, which means it has the capital to expand. It raised $5 billion in 2021. Management also forecasts it will sell cars in 25 countries by next year. While the target is overly ambitious, the number of Chinese auto companies that could compete with US, German, South Korean, and Japanese corporations has increased again. Tariffs keep these Chinese companies from selling their low-priced models outside their home market, but that will eventually change,

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Investing In Climate –New EV IPO

Poor nations may be underreporting their contributions to climate change. According to The Guardian, “Mukhtar Babayev, the ecology minister of Azerbaijan, who will lead the Cop29 UN climate summit in November, said poor countries must demonstrate clearer accounting and transparency to back up their calls for trillions of dollars of climate finance,” Climatecrisis247 believes that many of these nations do not have the capacity to track the effects of their efforts. They do not have inadequate or sophisticated government agencies to measure outcomes. It also raises the issue that wealthy nations do not give enough money to the nations to help them meaningfully affect the climate crisis.

New European Commission Climate Rules

The European Commission has set new rules about how its member nations report climate change effects. The agency’s leaders wrote,” the use of revenues generated by the EU Emission Trading System (EU ETS) Directive, which must now be fully dedicated to climate action.” EU ETS is among the largest carbon markets in the world. It is a means to help nations reduce greenhouse gas emissions “cost-effectively.” Climatecrisis247 believes this is a strong step forward to make countries accountable for their climate-related actions, and may become the template for others.

EVs Don’t Solve Climate Problem

Inside Climate News asked an important question, “EV Sales Are Taking Off. Why Is Oil Demand Still Climbing?” There is no sign oil demand will drop for years. Daniel Raimi, a fellow at Resources for the Future, an environment and energy research institute told the news service, “Under current policies, EVs are not an existential threat to global oil demand, not even close. If we’re going to achieve our long-term climate goals we need additional public policies and technological innovation to get us where we need to go.” Climatecrisis247 believes that EVs only solve a modest amount of the problem of greenhouse gas emissions. Additionally, their sales have slowed. A large number of other huge industries use oil, and as the global economy improves demand for crude will increase with it.