Factbox: Five Facts About Why Electric Buses Are Key To Biden’s Green Agenda
July 14 (Reuters) – President Joe Biden has pledged to dramatically cut emissions by 2030, while creating new, well-paying green energy jobs. His administration has identified the electrification of buses as one of the main means of achieving this goal.
While more than half of transportation emissions are produced by conventional passenger cars, diesel-powered transit buses are considered among the worst polluters, especially in American cities.
MASS TRANSPORTATION POLLUTION
Converting city buses to a battery or fuel cell is considered one of the fastest ways to reduce greenhouse gas emissions from the transport sector, which, at 29%, accounts for the largest share of American broadcasts.
LOSE THE RACE OF ELECTRIC BUSES
Of the roughly 70,000 predominantly diesel transit buses in the United States, only about 2% are currently zero-emissions, according to the Center for Transportation and Environment, which advises transit agencies on clean-energy buses.
This puts the United States far behind China, which has converted nearly 60% of its bus fleet, according to Chinese government data for 2020. In Europe, electric buses accounted for 6% of total new bus registrations in 2020, according to European Automobile. Association of Manufacturers.
WHO FINANCES US ELECTRIC BUSES?
U.S. transit agencies receive a large chunk of funding from the Federal Transit Administration, an agency of the U.S. Department of Transportation that has provided nearly $ 670 million in subsidies for electric buses over the past eight years.
Thanks in part to this funding, the U.S. electric bus market is expected to quintuple to $ 2.7 billion by 2024, according to analysts at P&S Intelligence.
WHO ARE THE ACTORS IN THE INDUSTRY?
The US electric bus market is currently led by two players who sell specially designed battery buses: California-based Proterra Inc (PTRA.O) and BYD North America, a unit of Chinese company BYD Co Ltd (002594.SZ) . Each company has sold approximately 1,000 e-buses in the United States over the past ten years. Read more
But the electric models of historic diesel bus manufacturers, notably GILLIG in the United States, the New Flyer unit of the Canadian group NFI Group Inc (NFI.TO) and Novabus, a subsidiary of Volvo (VOLVb.ST), based in Canada, are gaining popularity among public transportation officials. .
New Flyer, GILLIG, Novabus, BYD and Proterra jointly have a production capacity of approximately 6,000 electric and conventional buses per year, BYD representing approximately a quarter of the overall production capacity.
WHAT IS BIDEN’S OBJECTIVE?
Biden aims to electrify 50,000 diesel buses, or about 70% of the US fleet over the next eight years.
Under a bipartisan deal reached last month, $ 7.5 billion would go to bus electrification programs, though that funding also includes electric school buses. Read more
Biden wants to see this kitty stimulate the creation of well-paying union jobs.
Reporting by Tina Bellon in Austin, Texas; edited by Edward Tobin
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