Powering the Electric Vehicle Revolution: the Netherlands Ranks Fifth in rEV Index 2021
With a top 5 consisting of Norway, China, Germany and Sweden, the Netherlands ranks as one of the global leaders in EV readiness
The rEV Index 2021, produced by Economist Impact, assesses 40 nations and regions on their readiness for electric vehicles (EVs). No country is expected to be fully ready for EVs today, but the rEV index 2021 indicates that all countries, including the Netherlands, are making progress. Electric cars had a record year in 2020, with Europe overtaking China as the biggest market. Norway comes the closest to being ready for EVs—it also has one of the most ambitious targets to achieve 100% zero emission vehicle sales of new cars by 2025, and so is expected to be further along in its journey.
Strong in charging infrastructure
To measure readiness for EVs, Economist Impact assesses the charging infrastructure available. Lack of sufficient charging stations is a common consumer concern in the uptake of EVs. This pillar assesses the maturity of the charging infrastructure to allow consumers to overcome this fear. In terms of charging infrastructure, there is no other country with the same density of charging points as the Netherlands. The Netherlands has the highest number of public EV chargers of all countries assessed after China, with almost one charger for every 2km of road.
The Netherlands has seen steady growth in EV registrations and the development of its charging infrastructure. The relatively high rate of EV uptake, particularly of fully electric vehicles which make up over 50% of EVs on the road, is proof of the progressive policies implemented. The Dutch government provides financial incentives to accelerate the rate of EVs in the Netherlands. These programs have helped to reduce the price gap between an EV and a conventional vehicle.
Green ambitions driving the shift
One of the research areas for the rEV index includes the assessment of regulations in the Netherlands. This indicator weighs the existence and stringency of environmental regulations and the targets including. The Netherlands scores particularly high in regulatory environment and the extent to which it supports EV uptake.
The Netherlands has committed to a 95% greenhouse gas emission reduction by 2050, in accordance with the 2015 Paris Climate agreement. To achieve this goal, the Dutch government works together with industry, environmental organizations and other civil-society organizations. This ambitious target necessitates a quicker supply side shift towards EVs in order to meet the targets.
Smart mobility in the Netherlands
Understandably, the readiness for EVs includes not only consumer readiness, but also readiness on the part of suppliers to invest in new technologies. The index findings reveal the need for a holistic approach in the transition towards EVs, one which addresses all of the barriers to transition and implements policies to make progress across all aspects of EV readiness.
To that end, the Netherlands provides ample opportunity to collaborate between businesses, universities and the public sector, like independent research organization TNO. Additionally, the Netherlands is home to the vibrant Automotive Campus in Helmond, where a team of 1250 workers design tomorrow’s vehicles with innovation and efficiency in mind. And with companies such as Canoo, Heraeus Battery Technology, Hyzon and ABB recently choosing for the Netherlands, the Dutch smart mobility ecosystem is only getting stronger.
About the Economist Impact rEV Index
The rEV Index, produced by Economist Impact and supported by bp, assesses 40 different nations and regions on their levels of readiness to transition to EVs. The index highlights what it means to be ready, from the perspectives of both vehicle users and vehicle producers. It measures readiness in terms of inputs—or the policies, investments and other considerations that drive users and producers towards EVs— and in terms of outputs—or the impacts of said policies and investments reflected in increased uptake and/or increased availability of EVs in the market.
Source: Economist Impact10 December 2021