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Arcadis today released its Global Charging Infrastructure Market report in partnership with the World Business Council for Sustainable Development. Covering 21 regions around the world, the report analyzes five key parameters to determine each region’s readiness to invest in infrastructure to enable the transition to electric vehicles.

When it comes to electric vehicle investment, the Netherlands consistently tops the list, alongside other frontrunners such as the UK and California. With a clear strategy for adopting Electric Vehicle infrastructure at the national and local levels, along with strong tax incentives and a growing number of public charging stations, these pioneers are helping to set the tone for mass Electric Vehicle adoption.

As the global electric vehicle market continues to grow, countries around the world must continue to increase investment in charging infrastructure if they are to successfully transition to zero-emission vehicles. In the report, Arcadis and WBCSD identified more than 23 metrics for these five parameters. These are considered the most influential when measuring a region’s market readiness for investment and have been used to determine which regions are performing well and which can improve.

The five key parameters critical for supporting investment in Electric Vehicle infrastructure are:

Government leadership and incentives

Political change and stricter environmental regulations are some of the strongest catalysts for the global Electric Vehicle transition.

Hong Kong is leading in this regard, offering tax exemptions, an existing ban on Internal Combustion Engine Vehicles and fines for failing to meet required standards in environmental zones. It also has a clear net-zero declaration and a state budget above 0.08% of GDP for charging infrastructure incentives.

Electric Vehicle market maturity and readiness

A region needs to have a mature Electric Vehicle market to support viable investment in charging infrastructure. Mature markets are characterized by affordable vehicles, availability of useful vehicles, and increased production capacity.

Europe is leading in this regard, especially Norway and the Netherlands. In contrast, many South American countries still have room for improvement, such as Argentina, Chile and Mexico, which currently have less than 2 percent of the electric vehicle market.

Returns potential

Utilization is the key to stable Return Of Investment, and it’s important to find the right balance between infrastructure over- and under-utilization, and infrastructure under-provisioned and over-utilized, which can lead to “plug-and-play queues.” Return potential is also affected by factors such as electricity prices, fossil fuel prices, capital expenditures on charging infrastructure and flexibility of other monetizable services.

Among the regions measured, China is the strongest in the field. Europe is also doing well, especially Spain, Norway and the Netherlands.

Charging infrastructure

The availability and accessibility of charging stations is an important factor in the transition to electric vehicles. This means reliable charging options are available at every point of the journey – at the exit (street, garage or driveway), en route and at destination.

The Netherlands leads the pack, but New York and California also perform well in this category. While the number of charging points here is relatively small, both U.S. states should benefit from a clear national strategy and have reliable grids. However, New York in particular will benefit from the projected increase in the proportion of public charging points, currently 16 vehicles or more per charge point, while California has a much higher projected proportion of 6-10 vehicles per public charging point.

Ease of doing business

Strong governance coupled with robust legal systems and regulatory policies, as well as strong GDP per capita, demonstrate the potential and attractiveness of investing in the region’s growing Electric Vehicle market.

The Netherlands, US and Singapore all top the table here.

Simon Swan, Global New Mobility Solutions Director at Arcadis, said:

“The Electric Vehicle market is moving at considerable pace, with new charging hubs and new technologies like wireless charging becoming available all the time. Accelerating this transition is critical for cutting emissions and limiting the impact of climate change, and it is encouraging that all regions included in this report are making progress towards mobility decarbonization, albeit at different speeds and with different focus areas.

“Widespread Electric Vehicle adoption is key, and even in the slower to develop markets, there is progress. This index is a snapshot in time, and regions will increase their scores as they adopt new government Electric Vehicle incentives, increase their Electric Vehicle charging infrastructure or as the Electric Vehicle market matures. With clear leadership and the right policy levers in place, electric vehicles can play a notable role in tackling the climate crisis and improving quality of life for all communities across the world.”

The Global Charging Infrastructure Market report is an extension of Candice’s previous 2021 Global Electric Vehicle Catalyst Index. The newly updated report includes additional regions such as Norway, Turkey, Hong Kong and South America, as well as expanded metrics such as ease of doing business and return potential categories.

The purpose of the report is to encourage cooperation and regional dialogue between countries and organizations exploring the field of electric vehicles. Arcadis and WBCSD work together to foster collective action and develop tools to help businesses, governments and financiers develop customized strategies for deploying zero-emission vehicle technologies.

The regions measured include the Netherlands, United Kingdom, Germany, Norway, France, Ireland, Italy, Spain, Turkey, Canada, California, New York, China, Hong Kong, Singapore, Australia, Thailand, Chile, Brazil, Mexico and Argentina.

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Adoption of electric vehicles depends on countries investments.
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