The so called "War on Terror" and "Global Financial Crisis" are finally coming to the rescue of the environment industry. Today, President Obama announced national mileage and emission standards for all vehicles in the US which broadly amount to a 30 per cent increase in vehicle energy efficiency, and we anticipate a similar reduction in emissions, by 2016. This is exactly what the car industry needed: clear direction. Well done Mr President.
Obama cited a number of reasons for the introduction of the new measures. The reason that attracted the most emphasis was not emissions reduction, (yes it was a reason), but energy security. A reduction in the US's use of oil is good for it strategically and economically. The "Global Financial Crisis" had its role too. The greatest opponents of mandatory reductions in car emissions were the American car makers who have repeatedly opposed this kind of legislation at the State level. They are now broke and need Government aid. They are now towing the line and even smiling as they do. No real surprises there!
Today's announcement is a big step forward because it allows all car companies to plan and invest. Ironically, much of the technology to reduce emissions by 30 per cent already exists and car models already exist that can achieve it. The engine, materials and areodynamic technology have already been deployed by most Japanese manufacturers and by all accounts there is more to come. For this group investment will accelerate. The additional cost to the consumer for a fuel efficient car is estimated to average US$1,300, which according to Obama, is a three year payback or on the author's calculations, the cost of one cup of coffee a day for 15 months.
So reducing emissions isn't too hard with clear direction. Thank you WOT and GFC. We look forward to the next piece of silver lining.
