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Environmental Credits Powering the Rise of Zero-emission Vehicles, 2020

  • Report

  • 66 Pages
  • December 2020
  • Region: Global
  • Frost & Sullivan
  • ID: 5231222

EV Credits Hold Future Growth Potential, and Pure-play EV OEMs Stand to Benefit the Most

State and federal governments in various countries offer OEMs credit points for developing emission reduction technologies that meet emission standards and promote ZEV vehicles. GHG credit and ZEV credit policies are framed in such a way that both can be used to compensate deficits in a credit policy.

Research Scope

The study aims to analyze and understand environmental credits offered by various governments to automakers for following emission regulations. The study discusses regulations by regions and their impact on different automakers.

Key Features

  • To capture the key emission regulations
  • To compare credit systems by country/region
  • To identify the advantages and disadvantages of credits and their market impact
  • To analyze Tesla and its credit rating
  • To provide the key trends within ICE technology development

Research Highlights

The study gives an overview of the global emission credit norms and credit policies in the United States, China, and Europe. The basic structure of the credit system in these countries/regions is analyzed, and its impact is outlined. GHG credit policies and their measurement systems are outlined by country/region. Allocation of ZEV credits and ZEV targets is defined, in addition to a comparison of policy highlights. A comparative analysis of ZEV policies in these countries is performed, based on policy parameters involving trading mechanisms and eco-innovation/off-cycle technologies.

The study analyzes credit compliance for the United States, Europe, and China, on the basis of the country's investment in various technologies. It also measures and analyzes current compliance status, future compliance status, and strategies of Major OEMs, highlights key transactions of emission credits, and identifies key credit purchasers and sellers. The study also offers an analysis of the short- and long-term impact of ZEV and GHG credits on sales of traditional and pure-play EVs. From an automotive and transportation standpoint, the study establishes the effect of the credit system on the market and on OEM performance.

Key Issues Addressed

  • What are carbon credits? How are they structured and why are they needed?
  • How do credits impact automakers and the sale of EVs? What are the potential ways for OEMs to use these credits?
  • What are the advantages and disadvantages of environmental credits?
  • Who are the OEM beneficiaries from an environmental credits perspective and how will such credits impact other OEMs?
  • What are the trends/developments in the ICE/EV powertrain space due to these credits?

Table of Contents

1. Executive Summary
  • Key Findings
  • Regulatory Credits
  • ZEV Credit Regulation
  • ZEV Credit Calculation
  • Comparative Analysis
  • Final Credit Balances
  • Credit Transactions
  • Tesla’s Trump Card
  • Future Compliance Status
  • Key Conclusions

2. Research Scope and Methodology
  • Research Scope
  • Research Aims and Objectives
  • Key Questions this Study will Answer
  • Research Background
  • Research Methodology

3. Regulations and Credits
  • Global Fuel Economy and GHG Emission Norms
  • Global CO2 Emissions Legislation
  • Regulatory Credits
  • Analyzing Emission Credits

4. Environmental Credits Overview by Region
  • US - GHG Credit
  • EU - Super Credits
  • China - Dual Credit Policy
  • Comparison of Eligibility Criteria and Basis of Credit Allocation for ZEVs
  • ZEV Credit Regulation
  • ZEV Credit Calculation
  • ZEV Credit Policies
  • Comparative Analysis

5. US Environmental Credit Analysis and OEM Strategies
  • Credits for Off-cycle Technology
  • Compliance Status After Model Year 2018
  • Industry Credit Compliance
  • Manufacturers Credit Compliance
  • Final Credit Balances
  • Final Credit Balance Expiry
  • Credit Trading
  • Credit Transactions
  • Future Compliance Status
  • Tesla’s Trump Card
  • Impact of ZEV and GHG Credit Sales on Automakers

6. EU Environmental Credit Analysis and OEM Strategies
  • Eco-innovation Credits
  • Manufacturer Pooling
  • Future Compliance Status

7. China Environmental Credit Analysis and OEM Strategies
  • Credit Situation
  • Future Compliance Status
  • Credit policy for drivers

8. Growth Opportunities and C2A
  • Growth Opportunity - Social Collaboration
  • Strategic Imperatives

9. The Last Word
  • 3 Big Predictions

10. Appendix
  • List of Abbreviations and Acronyms
  • Legal Disclaimer
  • List of Exhibits