The energy industry is evaluating the Low-carbon fuel standards (LCFS) as a means to accelerate the transition to clean energy that will support the operations of electric vehicles. On the other hand, the transport industry has been preparing itself to scrap out the internal combustion engine cars and replace them with electric vehicles in the race to suppress carbon emissions from the industry. The energy industry has been assessing the national LCFS program to come up with technologies that can develop electric vehicles and their charging facilities.
The experts have analyzed the generation of credit and the retraction of the carbon print via the California LCFS to resolve the problem of emission in the transportation industry. Moreover, they have been analyzing the revenue that they will realize if they fully replace conventional emissive cars with electric vehicles. These experts noted that they must also consider the efficiency of the investment that goes into charging infrastructure development projects to ensure that all the stakeholders enjoy the transition.
The studies indicated that electric vehicles are the ideal technology in the decarbonization of the transportation industry. A projection of the next five years shows that the continued inception of electric vehicles into the transportation industry will reduce these vehicles’ upfront costs to surpass the utilization of fossil fuels in California.
By the end of this decade, the electric vehicle industry will have brought the net-zero carbon emission target closer to achievement than before. Additionally, California could sell credits from the electric vehicle charging utilities to stabilize the electric vehicle expansion. This move would inform an escalation in electric vehicle purchases to be a regular source of revenue for this state and the industry.
The study anticipates the charging infrastructure to offer LCFS credits at a better price for the clients in need of them, provided that the rates do not strain the achievement of the profit objectives. It would be tough for the companies to offer Level 2 chargers to reduce the prices to accommodate the consumers’ transportation needs since they are still in the preliminary stages where they should push for sales rather than pricing strategies. Nevertheless, if the industry takes shape, the price reduction would be achievable.
In conclusion, infrastructure development credits can offer suitable uptake rates that the consumers and investors will enjoy about the industry. Moreover, the electric vehicle industry can penetrate the market with this strategy faster than other techniques since they project what the investors will experience if they decide to subscribe to the credits.