Energy
Three Regulatory Models Driving EV Adoption Across the Globe
Canada, California, and Europe each use fundamentally different compliance mechanisms to push EV adoption, with dramatic differences in how financial penalties and credits flow between automakers.
Key Takeaways
- A single zero-emission SUV can generate roughly 60 tons of lifetime CO2 credits under Canada's new fleet average system
- The EU imposes penalties of 95 euros per gram per km per vehicle, creating potential exposure of 3.6 billion euros for non-compliant manufacturers
- California's ZEV credit system requires approaching 40% EV sales by the late 2020s with credits capped per vehicle
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