An attempt of Germany to water down CO2 targets, about to be imposed by the EU, explains why automakers are eager to build EVs despite a lack of an eager market. Germany proposes that so-called supercredits can be used to off-set the limits. “Unlimited supercredits could allow the manufacture of electric cars for which there is little or no demand, while allowing just as many polluting vehicles as before on to the roads,” campaigners against supercredits told Reuters.
According to the wire, “Germany has been pushing for months for greater flexibility in implementing an emissions goal of 95 grams of carbon dioxide per kilometre (g/km) as an average across new EU vehicles from 2020. But votes in the European Parliament so far have backed a fairly robust version of the European Commission’s original proposal.”
Supercredits would allow high emission cars – provided that their makers also make very low-emission vehicles, such as electric cars.
In the U.S., EVs are often only sold in states that demand them by law. So called “quota cars” are available only in the numbers necessary to make the quota. Tesla’s profit for instance was made not by selling cars, but by selling carbon credits.