Climate Change Group Calls for Ending PHEV Subsidi
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Electric vehicles (“EVs”) are poised to take over the roads over the next two decades. As the effects of human-induced climate change have become more apparent, several governments have revealed plans to replace internal-combustion engine vehicles with zero-emission battery electric vehicles. For the longest time, plug-in hybrid cars (“PHEVs”) were thought to be the gap between conventional vehicles and EVs.
Powered by both an internal combustion engine and an electric motor coupled with a rechargeable battery, these vehicles would allow consumers to gradually switch to zero-emission vehicles. However, it has recently come to light that PHEVs may not be as environmentally friendly as previously thought. According to research done by the European group Transport and Environment (T&E) and backed by Greenpeace UK, a plug-in hybrid electric vehicle produces around 117g of CO2 for each kilometer travelled. This is considerably higher than the 44g of CO2 shown by official tests.
As such, the group has advised governments to end subsidies and tax breaks for PHEVs, which T&E senior director for clean vehicles Julia Polisanova calls “fake electric cars.” She has called for governments to stop subsidizing PHEVs with billions of taxpayers’ dollars, stating that hybrids are built for laboratory tests and tax breaks, not actual emission-free driving. The emission tests were carried out by Emissions Analytics using three plug-in hybrid SUV models: Mitsubishi’s Outlander, BMW’s X5 and Volvo’s XC60.
The announcement by T&E comes days after the European Union released proposed rules on emission limits that would strip plug-in hybrid cars of their green label beginning in 2026. Usually referred to as a gateway technology, PHEVs are a sort of kiddie pool for electric vehicles. Drivers first get the lay of the land in regards to electric vehicle technology, getting accustomed to the new driving experience by using hybrids. Since the hybrids also contain an internal combustion engine, drivers don’t have to worry about range or charging issues, something that prevents many drivers from making the switch.
In tests, T&E and other climate groups found that when the battery runs out of charge, the combustion engine has to work harder to move to propel the “dead weight” of the battery as well as charge it. This results in CO2 emissions that are three times higher than what is advertised.
Amanda Gibson, a spokeswoman from Mitsubishi, said that depending on the conditions, independent tests can produce unreliable or variable figures. A spokesman from Volvo noted that all cars manufactured by the firm are certified and comply fully with emissions regulations.
The EV sector could benefit significantly from working with payments-as-a-service entities on matters such as billing electric car owners for charging their vehicles. One interesting company in this niche is Net Element (NASDAQ: NETE), which focuses on offering financial technology solutions. The company is also in advanced stages of completing a merger with a California-based EV maker called Mullen Technologies Inc.
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