Bloomberg recently published a report regarding the banning of vehicles with internal combustion engines in California. Air Resources chairman of the board Mary Nichols said state officials have already stated their interest in putting an end to the sales of pollution-causing automobiles in a bid for cleaner air.
California is considered amongst the most environmentally-aware states, accounting for over 2 million of car sales, in the entire US in the previous year. Following the recent announcements made by other countries, Nichols went on by saying that Governor Jerry Brown had been sending messages concerning his thoughts on the issue. Brown is in fact one of the most plain-spoken US officials who has expressed strong interest in combating climate change.
If ICE vehicles are to be banned in California, Nichols thinks the current administration will not approve of it if done via an EPA waiver. That, in spite it is legal for them to do so. Nichols added it is more feasible by imposing new vehicle registration guidelines instead. However, she also said that the earliest implementation of such ban may be at least ten years from now.
Considering France and the UK have done so already, not to mention China, it is only a matter of time until other countries will follow the lead. With that being the said, we believe this will heavily affect the car industry in a global scale given the number of vehicles that are being registered in California which is way more than what Spain, Italy or France has been selling every year. This will increase the pressure on automotive companies to build more electric vehicles particularly for the State.
In line with this, the Global Automakers association has stated that cleaner cars must be made more affordable especially if California wants to achieve its goals for a better climate. Members of the association include several overseas car manufacturers in the US such as Japan’s Honda Motors and Toyota Motor Corporation.
In a statement, Global Automakers Association CEO John Bozella explains how they have been working with the state regarding intelligent and market-based strategies to reduce emissions by 2025. California has been setting its goals in cutting down its carbon dioxide emissions by eighty percent by 2050.
The rather “ambitious levels” of reducing greenhouse gas emissions according to Nichols means that they have to replace all combustion engines with some sort of renewable energy. Other ways to do this is by banning the registration of ICE vehicles as well as barring certain vehicles from California’s major highway systems. Nonetheless, it is still a long way to go and it is very likely that the auto industry will find enough time adjusting to the situation.