Clean Transport

Corporate fleets face several challenges in transitioning to electric vehicles, including the high upfront costs of EVs, the need for extensive charging infrastructure, and operational disruptions due to different working parameters compared to traditional vehicles. Additionally, the lack of maturity in the EV ecosystem for medium- and heavy-duty vehicles complicates the transition.

Electrification is seen as essential for decarbonizing corporate fleets because it offers a primary alternative to reduce greenhouse gas emissions and comply with emerging regulations. Additionally, electrification aligns with corporate sustainability goals and supports the creation of cleaner supply chains, which are increasingly demanded by customers.

Critics argue that the ICCT’s assessment fails to accurately account for hydrogen leakage across the supply chain and uses the 20-year global warming potential (GWP20) instead of the more standard 100-year metric (GWP100), which can significantly understate hydrogen’s climate impact. These oversights may mislead policymakers by presenting hydrogen fuel cell vehicles as more climate-friendly than they truly are, especially when compared to battery electric vehicles, which are currently seen as the more viable solution for decarbonizing Europe’s passenger car fleet.

The ICCT’s analysis shows that fuel cell vehicles powered by renewable (‘green’) hydrogen can achieve very low life-cycle emissions, but if the hydrogen is produced from fossil fuels (‘grey’ hydrogen), emissions can more than triple. The availability of green hydrogen in Europe remains limited, so the real-world emissions benefits of hydrogen vehicles depend heavily on how the hydrogen is produced—a nuance often overlooked in broader debates about zero-emission vehicles.

The reduction in life-cycle emissions of electric cars is primarily due to the increasing use of renewable energy sources in the electricity mix, which makes charging electric vehicles cleaner. Additionally, electric vehicles are more energy-efficient than conventional vehicles, contributing to their lower emissions[1][3].

Battery electric vehicles have significantly lower life-cycle emissions compared to gasoline cars, with reductions of up to 73% to 78% when using renewable electricity. In contrast, hybrids and plug-in hybrids show more modest reductions, with life-cycle emissions 20% and 30% lower than gasoline cars, respectively[2][3].

Decarbonizing the automotive supply chain is crucial because the industry's shift to electric vehicles will still result in significant emissions from materials used in production. By 2040, materials will account for 60% of life-cycle emissions, making sustainable material sourcing essential for achieving net-zero goals (Mighty Earth, n.d.)[4].

Tracking and reducing emissions in automotive supply chains can enhance supply chain resilience, tap into consumer preferences, strengthen brand reputation, and realize economic benefits through cost savings from energy efficiency and emission reduction strategies. Technologies like blockchain can also increase supply chain transparency and efficiency (Automotive Logistics, 2025)[3].

California offers various incentives for electric vehicles, including rebates from utilities like Southern California Edison and Pacific Gas & Electric, which provide up to $1,000 for used EVs. Additionally, programs like the San Joaquin Valley Air Pollution Control District offer up to $12,000 for qualified residents. However, the Clean Vehicle Rebate Project is currently not accepting new applications.

California's electric vehicle initiatives are part of a broader strategy to reduce pollution and promote clean energy. These efforts include not only EV incentives but also investments in charging infrastructure and policies to reduce emissions from power plants. The state's focus on EVs aligns with global trends in cleantech investments and environmental policy shifts.