Issue link: https://maltatoday.uberflip.com/i/1162794
05.09.19 12 OPINION George Mangion I t was announced this week by Jose Herrera, minister for environmentm that it is time for Malta's to gradually shi away from petrol and diesel engine cars. A cut-off date for such vehicles will be announced "in the first months of next year". Obviously, major importers were not happy that all new cars will - starting from the cut-off date - have to be zero emissions - even though as it stands to- day the government scheme is offering a €7,000 grant when one scraps an ICE vehicle for an electric one. A representative of the Mizzi Organi- sation, one of Malta's main importers of new vehicles, argued that 60 per cent of cars sold were second-hand so the ban should not exclude these. In a small is- land with practically one car for each cit- izen. Drivers face daily traffic congestion. Most cars are predominantly diesel engines, and as can be expected these pollute with heavy particulates. As a general comment, one must admit that progress and higher affluence has resulted in all strata of the population owning a car given that public transport albeit improving, yet is not perfect. With so many cheap second-hand ve- hicles (not forgetting heavy trucks and construction machinery) imported by dealers at prices which reach the budg- ets of most workers this has acerbated a chaotic traffic problem and air pollu- tion. Certainly, the future prosperity of our country depends on its ability to re- main fully and competitively integrated through an efficient transport system, yet also in the immediate future it takes into consideration its impact on both the natural health and environment. With close to three million tourists expected to grace our shores this sea- son, it is no wonder that emissions have accelerated. One therefore, applauds MEP Miriam Dalli who has led an EU commission to determine when com- bustion engine vehicles will be banned in Europe. e legislation sets a CO2 reduction target of 37.5 per cent for new cars and a CO2 reduction target for new vans of 31 per cent by 2030. Dalli said that "is is a step forward to ensure that Europe remains ahead of the curve when it comes to zero- and low-emission vehi- cles' technology eagerly replacing in- ternal combustion engine models. is sounds all very Utopian and one is ex- cused for expecting protests from exist- ing car owners (some still on hire-pur- chase) needing to dump them for brand new electrics. Some complain that unless you own a garage, charging your electric vehicle is near impossible given the increasing number of families living in flats. An- other complaint, is the cost of charging at home given that electricity consump- tion is metered and each household is allowed a concessionary annual rate of 10,000 units at the basic rate of 12c per unit. Once that household buys an electric car, that allowance will no longer suffice to cover normal consumption, hence the charging of the car and general household consumption will both be charged at the next bracket and possi- bly the one after reaching the rate of 34c per unit. So far there has been no feedback from Enemalta (a State utility) although Gov- ernment policy seems to hint that a spe- cial tariff is to be granted for home users who opt to charge their vehicles. Having seen the challenges ahead, let us exam- ine how other countries have solved the problem of this radical changeover. e trophy goes to Norway. e Nor- dic country, made a conscious decision to create hefty incentives for its citi- zens to purchase electric vehicles. As a result, the country is the undisputed leader in EV adoption. For example, one notes that last year, one-third of all pas- senger vehicles were fully electric, and that percentage is expected to increase in the near future. e Norwegian government has even set the ambitious target of requir- ing all new cars to be zero-emission by 2025. It prides itself of registering a total of 86,290 electric cars in 2018 alone. In Germany, we note that this year Volkswagen announced pre-book- ing in Europe for the first model of its new full-electric ID.3. e first special edition includes high-quality, high-per- formance equipment and is limited to 30,000 vehicles. Hydrogen cars and solar-powered cars are, for instance, competing tech- nologies challenging a zero-emission alternative to electric. Malta should be ready to welcome all of those options by facilitating the establishment of the infrastructure adapted for the different technologies. European laws already provide the regulatory regime for these technologies. A noteworthy case is the regulation on hydrogen-powered cars. Certain- ly, enthusiasm for EVs is spilling over to countries outside Europe, which are also seeing a high percentage of EV sales. In the USA, Tesla this year launched its fully electric Model Y, which can car- ry seven passengers and their cargo. It has two ultra-responsive, independent electric motors that digitally control torque to the front and rear wheels - for better handling, traction, and stability control. Equally successful is the Japanese manufacturer Nissan. It announced that the new Nissan Leaf would go on sale in Indonesia and the Philippines by 2020, underscoring Nissan's commitment to driving electrification in the region. China is also ahead of the curve and its leading car maker BYD announced the launch of the K12A in Shenzhen, the world's first 27-metre electric bus. With a passenger capacity of 250 peo- ple, it is the longest pure electric bus in the world and can travel at a maximum speed of 70 km/h. Having hailed the accolades for elec- tric one cannot omit to give equal merit on the arrival of the fuel cell vehicles. Fuel-cell (hydrogen) technology is nearly as quiet as the drivetrain in bat- tery-electric vehicles. Such novelties are also zero emission and are being offered as a challenger to the electric variants. In fact, hydrogen could be used as a direct replacement for fossil fuels in internal combustion engines, although mostly they focus on using it to power fuel cells. e maverick technology forces hy- drogen gas through a catalyst-coated membrane where it bonds with oxygen from the air. e process creates water vapor and a stream of electrons that can power the same electric motors that are found in a battery-electric vehicle. Not forgetting passenger cars designed by Japanese car makers such as the Toyo- ta as these present the Mirai or Clarity FCV versions. e breath-taking technology is so fast that it takes about five minutes to refuel a hydrogen tank with a range of around 300 miles, far less than required to re- charge a battery. To conclude, one patiently waits to hear the announcement next year of the planned change-over policy to zero emission car imports. A sober thought makes us reflect about affordability which is the primary consideration by low-income earners. Safe, small or medium-sized new EVs cost double an equivalent new con- ventional car. One hopes that the 2020 budget will announce further reduc- tions in the duty/taxes charged on zero emission vehicles so as to make our Utopian dream of protecting our envi- ronment a reality. Electric cars for all... utopia now George Mangion is a senior partner of an audit and consultancy firm, and has over 25 years experience in accounting, taxation, financial and consultancy services. His efforts have seen PKF being instrumental in establishing many companies in Malta and ensured PKF become one of the foremost professional financial service providers on the Island