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⚡Friday Global: US $12.5k tax credit

Plus how Greenpeace stole VW keys and took them up a glacier, Belgium is pushing EV companies, Russia committing to EVs.

The "Clean Energy for America" bill, which advanced in the U.S. Senate Finance Committee on a 14-14 tie vote, proposes (link):

  • The regular $7,500 tax credit for EVs and
    + $2,500 if the EV is assembled in US,+ another $2,500 if the workers of the production facilities are unionized. (GM would fall under this category, Tesla and VW would not).
  • To be limited to EVs up to $80,000 retail price.
  • To remove the credit caps for the automakers, currently at 200k, which both GM and Tesla have already reached.
  • To be phased out once US reaches 50% of new vehicle sales are EVs.

The bill must still be approved by the full Senate and U.S. House of Representatives and is expected to cost ~$31.6B through 2031. The $31.6B would eat up around 18% of Biden's $174B infrastructure proposal.

The bill might also be stripped for elements and incorporated to a larger economic package later this year, so we'll see what sticks.

Here is the link to the original document: (pdf).

Jaan's rant: As you know, I'm not a big fan of subsidies as a market manipulation. But to be fair, the fossil industry is subsidized waaaaay more: $5.2 trillion or 6.5% of the Global GDP in 2017 for example. Thus, I'm down with some correction for the early days. If you 'print' all that money, it really is best to direct it into the infrastructure (charging) and the green transformation of industries (fossil cars -> EV production).

‣ Meanwhile, the Belgium government took the planned 2026 ban of fossil cars off the table and advanced the bill that offer several tax advantages for companies switching to EV (link):

  • From 2026, only zero-emission company cars will benefit from tax advantages.
  • New electric cars are to be 100 per cent tax-deductible from 2026. In the years thereafter, the tax deductibility will gradually decrease to 67.5 per cent in 2031.
  • Company cars with combustion engines purchased between 1 July 2023 and 31 December 2025 are to gradually lose their tax deductibility.

‣ Greenpeace stole hundreds of keys from the VW vehicles at the loading port in Emden, Germany, and brought them on the Schneeerner glacier on the Zugspitze (GP tweet), a site particularly affected by climate change. Greenpeace says VW is not fast enough in electrification and calls for a discussion (link).

‣ The Russian government plans to invest ~$10.5B to support the development of battery and hydrogen vehicles by 2030. The goals are to have 1.5M EVs and 20k charging stations by then (link). Only 687 EVs were sold in Russia in 2020, so we've got a long way to go.

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