California Takes the Lead in Electric Vehicle and Charging Station Adoption

US electric vehicle momentum is slowing as tax credits expire, tariffs increase costs, and interest rates rise, while Europe and China accelerate EV adoption through stronger incentives, enhanced charging infrastructure, and growth in battery manufacturing.

Why has US Electric Vehicle Momentum Slowed as Globe Surges?

US electric vehicle momentum has slowed due to expiring subsidies, rising costs, and global competition from faster-moving markets.

✅ End of federal tax credits weakened buyer demand

✅ Tariffs and high interest rates raised EV prices

✅ Europe and China expanded incentives and infrastructure

You could be forgiven for thinking that electric cars might finally be gaining momentum in the United States. Last year, battery-powered vehicle sales topped 1.2 million—more than five times the number sold just four years earlier, amid an early-2024 EV surge in deliveries. Hybrid sales tripled over the same period, and in August, battery cars accounted for 10 percent of all new vehicle sales, a record high according to S&P Global Mobility.

Major automakers, including General Motors, Ford, and Tesla, reported record electric-vehicle deliveries this quarter, a rare bright spot in an industry still contending with high interest rates, inflation, and tariffs, and a sign the age of electric cars is arriving.

Yet analysts warn the apparent boom may be short-lived, noting a market share dip in early 2024 that could foreshadow slower growth. Much of the recent surge was driven by buyers rushing to take advantage of a federal subsidy worth up to $7,500 per vehicle—a credit that expired at the end of September. Without it, automakers expect demand to dip sharply.

"It's going to be a vibrant industry, but it's going to be smaller, way smaller than we thought," Ford CEO Jim Farley said Tuesday. General Motors’ CFO Paul Jacobson echoed that concern: "I expect that EV demand is going to drop off pretty precipitously," he told a conference last month.

Even with those gains, the US—still the world’s second-largest car market—remains a laggard compared with global peers, where global EV adoption has accelerated rapidly. Electric and hybrid vehicles accounted for nearly 30 percent of new sales in the UK last year and approximately one in five across Europe. In China, electric models accounted for almost half of all car sales in 2023 and are expected to become the majority this year, according to the International Energy Agency.

Analysts say policy differences largely explain the gap. Other regions have offered stronger incentives, stricter emissions rules, and more aggressive trade-in programs. President Joe Biden tried to close the gap, tightening emissions standards, offering loans for EV investments, and spending billions on charging networks while expanding the $7,500 credit. His goal was to have half of all US vehicle sales be electric by 2030.

Supporters argue that such measures are crucial to keeping American carmakers competitive with Chinese and European manufacturers. But former President Donald Trump, who recently dismissed climate change as a "con job," has vowed to roll back many of those initiatives, echoing arguments that the EV revolution is overstated by proponents. "We're saying ... you're not going to be forced to make all of those cars," Trump said this summer, while signing a bill to strike down California’s plan to phase out gasoline-only car sales by 2035. "You can make them, but it'll be by the market, judged by the market."

Although EVs have become cheaper, they still cost more than comparable gasoline models, and sales remain behind gas cars in most segments. The average US electric car sold for approximately $57,000 in August, which is roughly 16 percent higher than the overall average, according to Kelley Blue Book.

Chinese EV giants such as BYD have been blocked from the US market by tariffs supported by both Biden and Trump, further limiting price competition. Automakers now face the twin challenges of rising tariffs and disappearing subsidies.

"It would have been difficult enough if all you had to deal with were new tariffs, but with new tariffs and the incentive going away, there are two impacts," said Stephanie Brinley of S&P Global Mobility.

Researchers warn that the policy shift could further reduce EV investment. "It's a big hit to the EV industry—there's no tiptoeing around it," said Katherine Yusko of the American Security Project. "The subsidies were initially a way to level the playing field, and now that they're gone, the US has a lot of ground to make up."

Still, Brinley urged caution before declaring the race lost, even as some argue EVs have hit an inflection point in adoption. "Is [electric] really the right thing?" she asked. "Saying that we're behind assumes that this is the only and best solution, and I think it's a little early to say that."

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Olympus Renewable Energy Initiative reduces CO2 emissions by sourcing 100% clean electricity at major Japan R&D and manufacturing sites, accelerating ESG goals toward net zero, decarbonization, and TCFD-aligned sustainability across global operations.

Key Points

Olympus's program to source renewable power, cut CO2, and reach net-zero site operations by 2030.

✅ 100% renewable electricity at major Japan R&D and manufacturing sites

✅ Expected 70% renewable share of electricity in FY2023

✅ Net-zero site operations targeted company-wide by 2030

Olympus Corporation announces that from April 2022, the company has begun to exclusively source 100% of the electricity used at its major R&D and manufacturing sites in Japan from renewable sources. As a result, CO2 emissions from Olympus Group facilities in Japan will be reduced by approximately 40,000 tons per year. The percentage of the Olympus Group's total electricity use in fiscal 2023 (ending March 2023) from renewable energy sources, including green hydrogen applications, is expected to substantially increase from approximately 14% in the previous fiscal year to approximately 70%.

Olympus has set a goal of achieving net zero CO2 emissions from its site operations by 2030, as part of its commitment to achieving environmentally responsible business growth and creating a sustainable society, aligning with Europe's push for electrification to address climate goals. This is a key goal in line with Olympus Corporation's ESG materiality targets focused on the theme of a "carbon neutral society and circular economy."

The company has already introduced a wide range of initiatives to reduce CO2 emissions. This includes the use of 100% renewable energy at some manufacturing sites in Europe, despite electricity price volatility in the region, and the United States, the installation of solar power generation facilities at some manufacturing sites in Japan, and support of the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD), alongside developments such as Honda's Ontario battery investment that signal rapid electrification.

To achieve its carbon neutral goal, Olympus will continue to optimize manufacturing processes and promote energy-saving measures, and notes that policy momentum from Canada's EV sales regulations and EPA emissions limits is accelerating complementary electrification trends, is committed to further accelerate the shift to renewable energy sources across the company, thereby contributing to the decarbonization of society on a global level, as reflected in regional labor markets like Ontario's EV jobs boom that accompany the transition.

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Canada 2023 Clean Energy Outlook highlights decarbonization, renewables, a net-zero grid by 2035, hydrogen, energy storage, EV mandates, carbon pricing, and critical minerals, aligning with IRA incentives and provincial policies to accelerate the transition.

Key Points

A concise overview of Canada's 2023 path to net-zero: renewables, clean grids, storage, EVs, and hydrogen.

✅ Net-zero electricity regulations target 2035

✅ Alberta leads PPAs and renewables via deregulated markets

✅ Tax credits boost storage, hydrogen, EVs, and critical minerals

The year 2022 may go down as the most successful one yet for climate action. It was marked by monumental shifts in energy policy from governments, two COP meetings and heightened awareness of the private sector's duty to act.

In the U.S., the Inflation Reduction Act (IRA) was the largest federal legislation to tackle climate change, injecting $369 billion of tax credits and incentives for clean energy, Biden's EV agenda and carbon capture, energy storage, energy efficiency and research.

The European Union accelerated its green policies to transition away from fossil fuels and overhauled its carbon market. China and India made strides on clean energy and strengthened climate policies. The International Energy Agency made its largest revision yet as renewables continued to proliferate.

The U.S. ratified the Kigali Amendment, one of the strongest global climate policies to date.

Canada was no different. The 2022 Fall Economic Statement was announced to respond to the IRA, offering an investment tax credit for renewables, clean technology and green hydrogen alongside the Canada Growth Fund. The federal government also proposed a 2035 deadline for clean electrical grids and a federal zero-emissions vehicle (ZEV) sales mandate for light-duty vehicles.

With the momentum set, more action is promised in 2023: Canadian governments are expected to unveil firmer details for the decarbonization of electricity grids to meet 2035 deadlines; Alberta is poised to be an unlikely leader in clean energy.

Greater attention will be put on energy storage and critical minerals. Even an expected economic downturn is unlikely to stop the ball that is rolling.

Shane Doig, the head of energy and natural resources at KPMG in Canada, said events in 2022 demonstrated the complexity of the energy transformation and opened “a more balanced conversation around how Canada can transition to a lower carbon footprint, whilst balancing the need for affordable, readily available electricity.”

Expect further developments on clean electricity
2023 shapes up as a crucial year for Canada’s clean electricity grid.

The federal government announced it will pursue a net-zero electricity grid by 2035 under the Clean Electricity Regulations (CER) framework.

It requires mass renewable and clean energy adoption, phasing out fossil fuel electricity generation, rapid electrification and upgrading transmission and storage while accommodating growth in electricity demand.

The first regulations for consultation are expected early in 2023. The plans will lay out pollution regulations and costs for generating assets to accelerate clean energy adoption, according to Evan Pivnick, the clean energy program manager of Clean Energy Canada.

The Independent Energy System Operator of Ontario (IESO) recently published a three-part report suggesting a net-zero conversion for Ontario could cost $400 billion over 25 years, even as the province weighs an electricity market reshuffle to keep up with increasing electricity demand.

Power Utility released research by The Atmospheric Fund that suggests Ontario could reach a net-zero grid by 2035 across various scenarios, despite ongoing debates about Ontario's hydro plan and rate design.

Dale Beguin, executive vice president at the Canadian Climate Institute, said in 2023 he hopes to see more provincial regulators and governments send “strong signals to the utilities” that a pathway to net-zero is realistic.

He recounted increasing talk from investors in facilities such as automotive plants and steel mills who want clean electricity guarantees before making investments. “Clean energy is a comparative advantage,” he said, which puts the imperative on organizations like the IESO to lay out plans for bigger, cleaner and flexible grids.

Beguin and Pivnick said they are watching British Columbia closely because of a government mandate letter setting a climate-aligned energy framework and a new mandate for the British Columbia Utilities Commission. Pivnick said there may be lessons to be drawn for other jurisdictions.

Alberta’s unlikely rise as a clean energy leader
Though Alberta sits at the heart of Canada’s oil and gas industry and at the core of political resistance to climate policy, it has emerged as a front runner in renewables adoption.

Billion of dollars for wind and solar projects have flowed into Alberta, as the province charts a path to clean electricity with large-scale projects.

Pivnick said an “underappreciated story” is how Alberta leaned into renewables through its “unique market.” Alberta leads in renewables and power purchase agreements because of its deregulated electricity market.

Unlike most provinces, Alberta enables companies to go directly to solar and wind developers to strike deals, a model reinforced under Kenney's electricity policies in recent years, rather than through utilities. It incentivizes private investment, lowers costs and helps meet increasing demand, which Nagwan Al-Guneid, the director of the Business Renewables Centre - Canada at the Pembina Institute, said is “is the No. 1 reason we see this boom in renewables in Alberta.”

Beguin noted Alberta’s innovative ‘reverse auctions,’ where the province sets a competitive bidding process to provide electricity. It ended up making electricity “way cheaper” due to the economic competitiveness of renewables, while Alberta profited and added clean energy to its grid.

In 2019, the Business Renewables Centre-Canada established a target of 2 GW of renewable energy deals by 2025. The target was exceeded in 2022, which led to a revised goal for 10 GW of renewables by 2030.

Al-Guneid wants to see other jurisdictions help more companies buy renewables. She does not universally prescribe deregulation, however, as other mechanisms such as sleeving exist.

Alberta will update its industrial carbon pricing in 2023, requiring large emitters to pay $65 per tonne of carbon dioxide. The fee climbs $15 per tonne each year until it reaches $175 per tonne in 2030. Al-Guneid said as the tax increases, demand for renewable energy certificates will also increase in Alberta.

Pivnick noted Alberta will have an election in 2023, which could have ramifications for energy policy.

Batteries and EV leadership
Manufacturing clean energy equipment, batteries and storage requires enormous quantities of minerals. With the 2022 Fall Economic Statement and the Critical Minerals Strategy, Canada is taking important steps to lead on this front.

Pivnick pointed to battery supply chain investments in Ontario and Quebec as part of Canada’s shift from “a fuel-based (economy) to a materials-based economy” to provide materials necessary for wind turbines and solar panels. The Strategy showed an understanding Canada has a major role to meet its allies’ needs for critical minerals, whether it’s the resources or supply chains.

There is also an opportunity for Canada to forge ahead on energy storage. The Fall Economic Statement proposes a 30 per cent tax credit for investments into energy storage. Pivnick suggested Canada invest further into research and development to explore innovations like green hydrogen and pump storage.

Doig believes Canada is “well poised” for batteries, both in terms of the technology and sustainable mining of minerals like cobalt, lithium and copper. He is bullish for Canada’s electrification based on its clean energy use and increased spending on renewables and energy storage.

He said the federal ZEV mandate will drive increased demand for the power, utilities, and oil and gas industries to respond.

The majority of gas stations, which are owned by the nation’s energy industry, will need to be converted into EV charging stations.

Offsetting a recession 
One challenge will be a poor economic forecast in the near term. A short "technical recession" is expected in 2023.

Inflation remains stubbornly high, which has forced the Bank of Canada to hike interest rates. The conditions will not leave any industry unscathed, but Doig said Canada's decarbonization is unlikely to be halted.

“Whilst a recession would slow things down, the concern around energy security definitely helps offset that concern,” he said.

Amid rising trade frictions and tariff threats, energy security is top of mind for governments and private organizations, accelerating the shift to renewables.

Doig said there is a general feeling a recession would be short-lived, meaning it would be unlikely to impact long-term projects in hydrogen, liquified natural gas, carbon capture and wind and solar.

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EPA Auto Emissions Proposal 2027-2032 sets strict tailpipe emissions limits, accelerating electric vehicle adoption, cutting greenhouse gases, advancing climate policy, and reducing oil dependence through battery-electric cars and trucks across U.S. markets.

Key Points

An EPA plan setting strict tailpipe limits to drive EV adoption, cut greenhouse gases, and reduce oil use in vehicles.

✅ Cuts GHGs 56% vs. 2026 standards; improves national air quality.

✅ Targets up to two-thirds EV sales by 2032 nationwide.

✅ Reduces oil imports by about 20 billion barrels; lowers costs.

The Biden administration is proposing strict new automobile pollution limits that would require up to two-thirds of new vehicles sold in the U.S. to be electric by 2032, a nearly tenfold increase over current electric vehicle sales.

The proposed regulation, announced Wednesday by the Environmental Protection Agency, would set tailpipe emissions limits for the 2027 through 2032 model years that are the strictest ever imposed — and call for far more new EV sales than the auto industry agreed to less than two years ago, a shift aligned with U.S. EV sales momentum in early 2024.

If finalized next year as expected, the plan would represent the strongest push yet toward a once almost unthinkable shift from gasoline-powered cars and trucks to battery-powered vehicles, as the market approaches an inflection point in adoption.

The Biden administration is proposing strict new automobile pollution limits that would require up to two-thirds of new vehicles sold in the U.S. to be electric by 2032, a nearly tenfold increase over current electric vehicle sales.

The proposed regulation, announced Wednesday by the Environmental Protection Agency, would set tailpipe emissions limits for the 2027 through 2032 model years that are the strictest ever imposed — and call for far more new EV sales than the auto industry agreed to less than two years ago, a direction mirrored by Canada's EV sales regulations now being finalized.

If finalized next year as expected, the plan would represent the strongest push yet toward a once almost unthinkable shift from gasoline-powered cars and trucks to battery-powered vehicles, with many analysts forecasting widespread adoption within a decade among buyers.

Reaching half was always a “stretch goal," given that EVs still trail gas cars in market share and contingent on manufacturing incentives and tax credits to make EVs more affordable, he wrote.

“The question isn’t can this be done, it’s how fast can it be done,” Bozzella wrote. “How fast will depend almost exclusively on having the right policies and market conditions in place.”

European car maker Stellantis said that, amid broader EV mandate debates across North America, officials were “surprised that none of the alternatives” proposed by EPA "align with the president’s previously announced target of 50% EVs by 2030.''

Q. How will the proposal benefit the environment?

A. The proposed standards for light-duty cars and trucks are projected to result in a 56% reduction in projected greenhouse gas emissions compared with existing standards for model year 2026, the EPA said. The proposals would improve air quality for communities across the nation, and, with actual benefits influenced by grid mix — for example, Canada's fossil electricity share affects lifecycle emissions — avoiding nearly 10 billion tons of carbon dioxide emissions by 2055, more than twice the total U.S. CO2 emissions last year, the EPA said.

The plan also would save thousands of dollars over the lives of the vehicles sold and reduce U.S. reliance on approximately 20 billion barrels of oil imports, the agency said.

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Alberta Leads Canada’s Renewable Surge showcases how the province is transforming its power grid with wind, solar, and hydrogen energy projects that reduce carbon emissions, create sustainable jobs, and drive Canada’s clean electricity future.

Key Points: Alberta Leads Canada’s Renewable Surge

It is a national clean energy initiative showcasing Alberta’s leadership in renewable electricity generation, grid modernization, and sustainable economic growth.

✅ Expands solar, wind, and hydrogen projects across Alberta

✅ Reduces emissions while strengthening grid reliability

✅ Creates thousands of clean energy jobs and investments

Alberta is rapidly emerging as a national leader in clean electricity, driving Canada’s transition to a low-carbon energy future. A federal overview highlights how the province has become the powerhouse behind the country’s renewable energy growth across the Prairies, phasing out coal ahead of schedule and attracting billions in clean-energy investment.

In 2023, Alberta accounted for an astonishing 92 percent of Canada’s increase in renewable electricity generation, reflecting a renewable energy surge across the province. Solar and wind developments have expanded dramatically, as new lower-cost solar contracts are signed, reducing the province’s reliance on natural gas and cutting emissions from the power sector. Alberta’s vast land area and strong wind and solar resources have made it an ideal location for large-scale renewable projects that are transforming its energy landscape.

Federal programs are helping fuel this momentum. Through the Smart Renewables and Electrification Pathways program, 49 Alberta projects have already received over $660 million in funding, with an additional $152 million announced in the 2024 federal budget. Flagship developments include the Forty Mile Wind Farm and the Big Sky Solar Power Project, each backed by $25 million in federal support. These investments are creating jobs, strengthening grid reliability, and positioning Alberta at the forefront of Canada’s clean energy transition.

Although fossil fuels still dominate Alberta’s electricity mix, a major change is underway. In 2022, coal and natural gas accounted for 81 percent of electricity generation, while renewables and other sources contributed 18 percent, and the province’s hydroelectric capacity remained comparatively small. However, Alberta has successfully phased out coal generation ahead of the federal deadline, marking a milestone achievement in the province’s decarbonization journey.

Alberta’s renewable expansion features some of the country’s most significant projects. The Travers Solar Project in Vulcan County generates up to 465 megawatts — enough to power about 150,000 homes. Indigenous-led solar initiatives are also expanding, underscoring the province’s solar power growth, supported by $160 million in federal funding that has already created more than 1,500 jobs. On the wind side, the 494-megawatt Buffalo Plains Wind Farm, Canada’s largest onshore installation, began operating in 2024, followed by the 190-megawatt Paintearth Wind facility, which signed a 15-year power purchase agreement with Microsoft.

Beyond wind and solar, Alberta is exploring new technologies to maintain a stable, low-carbon grid while addressing solar expansion challenges related to grid integration. The province is collaborating with Saskatchewan on the development of small modular reactors (SMRs) to provide reliable baseload power and support the long-term shift toward net-zero electricity by 2050. Projects integrating carbon capture and storage are also moving forward, such as the proposed Moraine Power Generating Project — a 465-megawatt natural gas plant that is expected to create more than 700 jobs during construction.

The economic potential of Alberta’s clean energy transformation is substantial. Clean Energy Canada estimates that between 2025 and 2050, the province could gain more than 400,000 new jobs in the clean energy sector — triple the number currently employed in the upstream oil and gas industry. These positions will span renewable generation, hydrogen production, grid modernization, and energy storage.

With strong federal backing, aggressive private investment, and rapid deployment of renewable energy, Alberta is redefining its energy identity. Once known for its fossil fuel resources, the province is now positioning itself as a powerhouse for both green energy and fossil fuels in Canada, demonstrating that economic growth and environmental responsibility can go hand in hand.

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Space-Based Solar Power enables wireless energy transfer from orbital solar arrays, using microwave beaming to rectennas on Earth, delivering clean baseload power beyond weather and night limits, as demonstrated by Caltech and NASA.

Key Points

Space-based solar power beams microwaves from arrays to rectennas, delivering clean electricity beyond weather and night.

✅ Caltech demo proved wireless power transfer in space.

✅ Microwaves beam to rectennas for grid-scale clean energy.

✅ Operates above clouds, enabling continuous baseload supply.

Ali Hajimiri thinks there’s a better way to power the planet — one that’s not getting the attention it deserves. The Caltech professor of electrical engineering envisages thousands of solar panels floating in space, unobstructed by clouds and unhindered by day-night cycles, effectively generating electricity from the night sky for continuous delivery, wirelessly transmitting massive amounts of energy to receivers on Earth.

This year, that vision moved closer to reality when Mr. Hajimiri, together with a team of Caltech researchers, proved that wireless power transfer in space was possible: Solar panels they had attached to a Caltech prototype in space successfully converted electricity into microwaves and beamed those microwaves to receivers, as a demonstration of beaming power from space to devices about a foot away, lighting up two LEDs.

The prototype also beamed a tiny but detectable amount of energy to a receiver on top of their lab’s building in Pasadena, Calif. The demonstration marks a first step in the wireless transfer of usable power from space to Earth, and advances in low-cost solar batteries could help store and smooth that power flow — a power source that Mr. Hajimiri believes will be safer than direct sun rays. “The beam intensity is to be kept less than solar intensity on earth,” he said.

Finding alternative energy sources is one of the topics that will be discussed by leaders in business, science and public policy, including wave energy, during The New York Times Climate Forward event on Thursday. The Caltech demonstration was a significant moment in the quest to realize space-based solar power, amid policy moves such as a proposed tenfold increase in U.S. solar that would remake the U.S. electricity system — a clean energy technology that has long been overshadowed by other long-shot clean energy ideas, such as nuclear fusion and low-cost clean hydrogen.

If space-based solar can be made to work on a commercial scale, said Nikolai Joseph, a NASA Goddard Space Flight Center senior technology analyst, and integrate with peer-to-peer energy sharing networks, such stations could contribute as much as 10 percent of global power by 2050.

The idea of space-based solar energy has been around since at least 1941, when the science-fiction writer Isaac Asimov set one of his short stories, “Reason,” on a solar station that beamed energy by microwaves to Earth and other planets.

In the 1970s, when a fivefold increase in oil prices sparked interest in alternative energy, NASA and the Department of Energy conducted the first significant study on the topic. In 1995, under the direction of the physicist John C. Mankins, NASA took another look and concluded that investments in space-launch technology were needed to lower the cost and move closer to cheap abundant electricity before space-based solar power could be realized.

“There was never any doubt about it being technically feasible,” said Mr. Mankins, now president of Artemis Innovation Management Solutions, a technology consulting group. “The cost was too prohibitive.”

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