The U.S. president signed an executive order setting a goal that 50% of light-duty vehicles sold in the country starting in 2030 will be zero-emission (electric, hybrid, and fuel-cell vehicles). This will represent a major leap forward, considering that in 2020 only 2% of light-duty vehicles sold in the U.S. market were electric. Although the order is not legally binding, it aims to accelerate the transition to a low-emission economy. The transportation sector is the leading source of greenhouse gas emissions in the U.S.

The goal, however, is not much different from the one already set by some major manufacturers. Ford announced a few months ago that it aims for 40% of its sales in 2030 to be electric vehicles, while General Motors plans to produce only electric vehicles starting in 2035. A key element in the success of the White House’s plans is the massive expansion of charging stations for electric vehicles.

Overall, the electric vehicle sales target and the revised emissions standard would put the United States on track to reduce greenhouse gas emissions from new passenger vehicles by more than 60% by 2030 compared to 2020, according to the White House statement, which would help achieve the Biden administration’s 50-year goal of a 52% net reduction in GHG emissions by 2030 (below 2005 levels).

Additional investment areas: The Biden administration also discussed its investment priorities to boost the adoption of electric vehicles in the U.S., which include: 1) a national network of public electric vehicle charging stations; 2) consumer incentives at the point of sale; 3) funding for the modernization and expansion of the domestic manufacturing supply chain; and 4) investing in next-generation clean technologies. In the U.S., the latest bipartisan infrastructure framework proposes a US$15 billion investment in electrification, including US$7.5 billion for electric vehicle infrastructure (note that the Biden administration aims to install 500,000 new public charging points by 2030) and US$7.5 billion for electric buses and public transportation.