4 Social Risk Factors in Transition to EVs, & 3 Solutions

We’ve published a few segments from Transport & Environment’s “The fossil fuel car trap: Europe’s transport vulnerability risk” briefing. It’s an interesting analysis tackling a problem many of us want to sweep under the rug (and others bring up obsessively). The fact is that access to the EV revolution has not been as good for lower income people. Of course, that’s how tech transitions tend to go, but there are reasons why we’d really like it to be different with EVs — public health matters and the need to cut emissions urgently, for example. Let’s now look at some key potential solutions.

In the briefing, T&E identifies the following as four key social risk factors with the transition to EVs:

• Dependence on private cars,
• The pace of electrification,
• The affordability of EVs (lower prices),
• The level of transport vulnerability to rising fuel prices.

Also, these factors present themselves and mutate a bit depending on the location.

The question is how to address these challenges. These are T&E’s big three recommendations:

1. Accelerating electrification through inclusive support schemes, such as social leasing
   Improving access to EVs for middle- and low-income households is crucial. Large-scale electrification of the vehicle fleet must be achieved by 2030 to avoid leaving significant segments of the population behind. The “social leasing” scheme initiated in France may serve as a model. It targets households excluded from the EV market and most vulnerable to fuel price volatility. Based on public subsidies, the scheme aims to remove financial barriers to access by offering EVs at affordable rental prices. Member States should include social leasing schemes in their National Climate Plans targeting most vulnerable groups.
2. Complementary measures to boost the second-hand EV market
   Support schemes such as social leasing should be combined with mandatory targets for the greening of company car fleets across Europe. Since most new cars are bought for corporate fleets, and these vehicles typically enter the second-hand market within 3–4 years, this measure would more largely accelerate the availability of used EVs, making them more accessible to a broader population.
3. Reducing reliance on private cars through alternative mobility options
   Policies must also strengthen the availability of public transport and active mobility. The reduction of car kilometres travelled should be a key performance indicator for policies. It will ensure effective savings for households and improved control over mobility-related expenses.

I love that first suggestion. Cars are not investments — they are money drains. Unfortunately, that tends to hit poor and less wealthy people more. They are forced to buy older, used cars because of the financial barriers to getting a new car, and then they end up having to pay an arm and a leg to repair and maintain and even just fuel up those older, worse cars. Forget tax credits and other incentives to purchase prices — bring down costs and barriers to entry through smart social leasing programs! That will also get a lot more EVs on the road, combined with other measures to get automakers to care and try.

Suggestions #2 and #3 are good too, but I think it’s #1 that is worth really highlighting as a unique approach that needs more attention and needs to spread. Let’s hope it gets more popular in Europe at least.

But, yes, do all the things!