Electric vehicles (EVs) now account for more than one-in-four car sales around the world, but the next phase is likely to depend on government action – not just technological change.
That is the conclusion of a new report from the Centre for Net Zero, the Rocky Mountain Institute and the University of Oxford’s Environmental Change Institute.
Our report shows that falling battery costs, expanding supply chains and targeted policy will continue to play important roles in shifting EVs into the mass market.
However, these are incremental changes and EV adoption could stall without efforts to ensure they are affordable to buy, to boost charging infrastructure and to integrate them into power grids.
Moreover, emerging tax and regulatory changes could actively discourage the shift to EVs, despite their benefits for carbon dioxide (CO2) emissions, air quality and running costs.
This article sets out the key findings of the new report, including a proposed policy framework that could keep the EV transition on track.
A global tipping point
Technology transformations are rarely linear, as small changes in cost, infrastructure or policy can lead to outsized progress – or equally large reversals.
The adoption of new technologies tends to follow a similar pathway, often described by an “S-curve”. This is divided into distinct phases, from early uptake, with rapid growth from very low levels, through to mass adoption and, ultimately, market saturation.
However, technologies that depend on infrastructure display powerful “path-dependency”, meaning decisions and processes made early within the rollout can lock in rapid growth, but equally, stagnation can also become entrenched, too.
EVs are now moving beyond the early-adopter phase and beginning to enter mass diffusion. There are nearly 60m on the road today, according to the International Energy Agency, up from just 1.2m a decade ago.
Technological shifts of this scale can unfold faster than expected. Early in the last century in the US, for example, millions of horses and mules virtually disappeared from roads in under three decades, as shown in the chart below left.
Yet the pace of these shifts is not fixed and depends on the underlying technology, economics, societal norms and the extent of government support for change. Faster or slower pathways for EV adoption are illustrated in the chart below right.
Internal combustion engine (ICE) vehicles did not prevail in becoming the dominant mode of transport through technical superiority alone. They were backed by massive public investment in roads, city planning, zoning and highway expansion funded by fuel taxes.
Meanwhile, they faced few penalties for pollution and externalities, benefitting from implicit subsidies over cleaner alternatives. Standardisation, industrial policy and wartime procurement further entrenched the ICE.
EVs are well-positioned to follow a faster trajectory, as they directly substitute ICE vehicles while being cleaner, cheaper and quieter to run.
Past transitions show that like-for-like replacements – such as black-and-white to colour TVs – tend to diffuse faster than entirely novel products.
Late adopters also benefit from cost reductions and established norms. For example, car ownership took 60 years to diffuse across the US, but just 20 years in parts of Latin America and Japan.
In today’s globalised economy, knowledge, capital and supply chains travel faster still. Our research suggests that the global EV shift could be achieved within decades, not half a century.
Yet without decisive policy, investment and coordination, feedback loops could slow, locking in fossil-fuel dependence.
Our research suggests that further supporting the widespread deployment of EVs hangs on three interlinked actions: supporting adoption; integrating with clean electricity systems; and ensuring sustainability across supply chains and new mobility systems.
Closing the cost gap
EVs have long offered lower running costs than ICE vehicles, but upfront costs – while now cost-competitive in China, parts of Europe and in growing second-hand markets – remain a major barrier to adoption in most regions.
While battery costs have fallen sharply – lithium-ion battery packs fell by 20% in 2024 alone – this has not fully translated into lower retail vehicle prices for consumers.
In China, a 30% fall in battery prices in 2024 translated into a 10% decline in electric SUV prices. However, in Germany, EV retail prices rose slightly in 2024 despite a 20% drop in battery costs.
These discrepancies reflect market structures rather than cost fundamentals. Our report suggests that a competitive EV market, supported by transparent pricing and a strong second-hand sector, can help unlock cost parity in more markets.
Beyond the sale of EVs, government policy around running costs, such as fuel duty, has the potential to disincentivse EV adoption.
For example, New Zealand’s introduction of road-pricing for EVs contributed to a collapse in registrations from nearly 19% of sales in December 2023 to around 4% in January 2024.
EV-specific fees have also been introduced in a number of US states. Last month, the UK also announced a per-mile charge for EVs – but not ICEs – from 2028.
Addressing the loss of fuel-duty revenue as EVs replace ICE vehicles is a headache for any government seeking to electrify mobility.
However, to avoid slowing diffusion, new revenues could be used to build out new charging infrastructure, just as road-building was funded as the ICE vehicle was scaling up.
While subsidies to support upfront costs can help enable EV adoption, the best approach to encouraging uptake is likely to shift once the sector moves into a phase of mass diffusion.
Targeted support, alongside innovative financing models to broaden access, from blended finance to pay-as-you-drive schemes, could play a greater role in ensuring lower-income drivers and second-hand buyers are not left behind.
Mandates as engines of scale
Zero-emission vehicle (ZEV) mandates and ICE phase-out deadlines can reduce costs more effectively than alternatives by guaranteeing market scale, our research finds, reducing uncertainty for automakers and pushing learning rates forward through faster production.
California’s ZEV mandate was one of the first in the 1990s, a policy that has since been adopted by ten other US states and the UK.
China’s NEV quota system has produced the world’s fastest-growing EV market, while, in Norway, clear targets and consistent incentives mean EVs now account for nearly all of new car sales. These “technology-forcing” policies have proved highly effective.
Analyses consistently show that the long-run societal benefits of sales mandates for EVs far outweigh their compliance costs.
For example, the UK’s ZEV mandate has an estimated social net present value of £39bn, according to the government, driven largely by emissions reductions and lower running costs for consumers.
Benefits can also extend beyond national borders. For example, California’s “advanced clean cars II” regulations – adopted by a number of US states and an influence on other countries – have been instrumental in compelling US automakers to develop and commercialise EVs, which can, in turn, trigger innovation and scale to reduce costs worldwide.
Research suggests that, where possible, combining mandates and incentives creates further synergies: mandates alleviate supply-side constraints, making subsidies more effective on the demand side.
Public charging: a critical bottleneck
Public charging is one of the most significant impediments to EV adoption today.
Whereas EVs charged at home are substantially cheaper to run than ICE vehicles, higher public charging costs can erase this benefit – in the UK, this can be up to times the home equivalent.
While most homes in the UK, for example, do have access to off-street parking, there are large swathes of low-income and urban households without access to private driveways. For these households, a lack of cheap public charging has been described as a de facto “pavement tax”, which is disincentivising EV adoption and resulting in an inequitable transition.
Our research shows that a dual-track charging strategy could help resolve the situation. Expanding access to private charging – through cross-pavement cabling, “right-to-charge” legislation for renters and planning mandates for new developments could be combined with strategic investment in public charging, to overcome the “chicken-and-egg” problem for investors uncertain about future EV demand.
Meanwhile, “smart charging” in public settings – where EV demand is matched with cheaper electricity supply – can also help close the affordability gap, by delivering cheap off-peak charging that is already available to those charging at home.
The Centre for Net Zero’s research shows that drivers respond to dynamic pricing outside of the convenience of their homes, which reduces EV running costs below those of petrol cars.
The figure below shows that, while the level of discount being offered had the strongest impact, lower-income areas showed the largest behavioural response, indicating that they may stand to gain the most from a rollout of such incentives.
Our research suggests that policymakers could encourage this type of commercial offering by creating electricity markets with strong price signals and mandating that these prices are transparent to consumers.
Integrating with clean electricity grids
Electrification is central to decarbonising the world’s economies, meaning that sufficient capacity on electricity networks is becoming a key focus.
For the rollout of EVs, pressure will be felt most on low-voltage “distribution” networks, where charging is dispersed and tends to follow existing peaks and troughs in domestic demand.
Rather than responding to this challenge by just building out the grid – with the corresponding economic and political implications – making smart charging the norm could help mitigate pressure on the network.
Evidence from the Centre for Net Zero’s trials shows that AI-managed charging can shift EV demand off-peak, reducing residential peak load by 42%, as shown in the chart below.
Additionally, the amount of time when EVs are plugged in but not moving is often substantial, giving networks hours each day in which they can shift charging, targeting periods of low demand or high renewable output.
The system value of this flexible charging is significant. In the UK, managed charging could absorb 15 terrawatt hours (TWh) of renewable electricity that would otherwise be curtailed by 2030 – equivalent to Slovenia’s entire annual consumption.
For these benefits to be realised, our research suggests that global policymakers may need to mandate interoperability across vehicles, chargers and platforms, introduce dynamic network charges that reflect local grid stress and support AI-enabled automation.
Bi-directional charging – which allows EVs to export electricity to the grid, becoming decentralised, mobile storage units – remains underexploited. This could allow EVs to contribute to the capacity of the grid, helping with frequency and providing voltage support at both local and system levels.
The nascency of such vehicle-to-grid (V2G) technology means that penetration is currently limited, but there are some markets that are further ahead.
For example, Utrecht is an early leader in real-world V2G deployment in a context of significant grid congestion, while Japan is exploring the use of V2G for system resilience, providing backup power during outages. China is also exploring V2G systems.
Our research shows that if just 25% of vehicles across six major European nations had V2G functionality, then the theoretical total capacity of the connected vehicles would exceed each of those country’s fossil-fuel power fleet.
Mandating V2G readiness at new chargepoints, aligning the value of exports with the value to the system and allowing aggregators to pool capacity from multiple EVs, could all help take V2G from theory to reality.
A sustainable EV system
It is important to note that electrification alone does not guarantee sustainability.
According to Rocky Mountain Institute (RMI) analysis, the total weight of ore needed to electrify the world’s road transport system is around 1,410mtonnes (Mt). This is 40% less than the 2,150Mt of oil extracted every year to fuel a combustion-based system. EVs concentrate resource use upfront, rather than locking in fossil-fuel extraction.
Moreover, several strategies can reduce reliance on virgin minerals, including recycling, new chemistries and improved efficiency.
Recycling, in particular, is progressing rapidly. Some 90% of lithium-ion batteries could now be recycled in some regions, according to RMI research. Under an accelerated scenario, nearly all demand could be met through recycling before 2050.
Finally, while our report focuses largely on EVs, it is important to highlight that they are not a “silver bullet” for decarbonising mobility.
Cities such as Seoul and New York have demonstrated that micromobility, public transport and street redesign can cut congestion, improve health and reduce the number of overall vehicles required.
Better system design reduces mineral demand, lowers network strain and broadens access.
The ‘decision decade’ ahead
Policy decisions made today will determine whether EVs accelerate into exponential growth or stall.
Our research suggests that governments intent on capturing the economic and environmental dividends of electrified mobility are likely to need coherent, cross-cutting policy frameworks that push the market up the steep climb of the EV S-curve.
The post Guest post: How to steer EVs towards the road of ‘mass adoption’ appeared first on Carbon Brief.
Guest post: How to steer EVs towards the road of ‘mass adoption’
Climate Change
Record-Low Snowpack and Historic Heat Threaten New Mexico’s Time-Honored Irrigation Canals
As the Rio Grande dries out months early, water managers look to blessings, prayers and groundwater to save the acequias that have spread water, history and culture to farmers and families since the 16th century.
ALBUQUERQUE, N.M.—On a sunny spring morning at the end of March, a woman raised her little girl above an irrigation ditch that runs just west of the Rio Grande in Albuquerque’s South Valley. The toddler, with a braided head piece crowning her long, brown hair and artificial flowers around her neck, enthusiastically tossed an assortment of colored petals into the water below as a small crowd cheered.
Record-Low Snowpack and Historic Heat Threaten New Mexico’s Time-Honored Irrigation Canals
The first three months of 2026 have been the fourth warmest on record, with each successive month surpassing historical averages by a greater margin.
While weak La Niña conditions pushed down temperatures at the start of the year, scientists expect the development of a strong – and potentially “super” – El Niño event by early autumn.
El Niño and La Niña are the warm and cool phases of the El Niño-Southern Oscillation (ENSO), a recurring climate pattern in the tropical Pacific that shapes global weather patterns.
Based on temperature datasets from five different research groups, Carbon Brief predicts that 2026 is likely to be the second-warmest year on record.
The year is virtually certain to be one of the four warmest on record and, currently, has a 19% chance of surpassing 2024 as the warmest year on record.
However, the development of a strong El Niño event later this year would substantially increase the chance that 2027 will be the warmest year on record.
In addition to near-record warmth, the start of 2026 has seen record-low sea ice cover in the Arctic, with the year tying with 2025 for the lowest winter peak in the satellite record.
Fourth-warmest start to the year
In this latest quarterly state of the climate assessment, Carbon Brief analyses records from five different research groups that report global surface temperature records: NASA, NOAA, Met Office Hadley Centre/UEA, Berkeley Earth and Copernicus/ECMWF.
The figure below shows the annual temperatures from each of these groups since 1970, along with the average over the first three months of 2026.
(It is worth noting that warming in the first three months may not be representative of the year as a whole, as temperatures relative to pre-industrial levels tend to be larger in the northern hemispheric winter months of December, January and February.)
Carbon Brief provides a best estimate of global temperatures by averaging the different records using a common 1981-2010 baseline period and then adding in the average warming since the pre-industrial period (1850-1900) across the datasets – NOAA, Hadley and Berkeley – that extend back to 1850. (This follows the approach taken by the World Meteorological Organization in its state of the climate reports.)
The figure below shows how global temperature so far in 2026 (black line) compares to each month in different years since 1940 (lines coloured by the decade in which they occurred).
The first three months of 2026 have been relatively warm, coming in in the top-five warmest on record across all the different scientific groups that report on global surface temperatures. This is despite the presence of weak La Niña conditions in the tropical Pacific at the start of the year, which typically suppress global temperatures.
January 2026 was the fourth- or fifth-warmest January on record across all the groups, February was the fourth- to sixth-warmest and March was between the second and fourth warmest.
| Dataset | January | February | March |
|---|---|---|---|
| HadCRUT5 | 5th | 6th | Yet To Report |
| NOAA | 5th | 5th | 2nd |
| GISTEMP | 5th | 4th | 4th |
| Berkeley Earth | 4th | 4th | 4th |
| Copernicus ERA5 | 5th | 5th | 4th |
Global temperature anomalies have been steadily increasing since their low point in January, as La Niña conditions have faded.
When combined, the first three months of the year in 2026 were the fourth-warmest in the historical record, below only 2024, 2025 and 2016.
A potential ‘super’ El Niño
There is reason to expect that global temperatures will continue to increase over the remainder of the year, as a strong – or even “super” – El Niño event is expected to develop later in the year.
Since the start of April, 13 different modelling groups have published estimates of future El Niño strength through at least September. These, in turn, contain 637 different model runs, as each model is run multiple times to better characterise the range of potential El Niño development.
There are a number of different ways to assess the strength of an El Niño or La Niña event.
The most common is the temperature anomaly in the “Niño3.4” region of the tropical Pacific. In addition, these temperatures have the human warming signal removed from changes over time in that part of the Pacific.
There are other approaches to assessing the strength of El Niño, including the newly released relative Oceanic Niño Index (RONI), which may be more accurate. However, RONI data is not readily available from all models today.
The figure below shows a distribution of Niño3.4 temperature anomalies across all of the runs of all of the models (top panel), as well as the range of runs across each of the individual models (bottom panel). Sustained sea surface temperatures in excess of 0.5C indicate an El Niño event, temperatures above 1.5C represent a strong El Niño event and above 2C is often referred to as a “super” El Niño event.
The latest climate models give a central (median) estimate of 2.2C warming by September – a scenario which would put the world firmly in “super” El Niño territory.
Warming would likely strengthen after September, as El Niño conditions generally peak between November and January.
However, there is still a wide spread among models, with some, such as CanESM5 and DWD, only showing a weak-to-moderate El Niño.
Historically, it has been hard to accurately forecast the development of El Niño during early spring, so it will be a few more months before scientists can be confident that a strong or super El Niño will develop.
Exceptional regional warmth
There were many regions of the planet that saw exceptional warmth in the first quarter of 2026. This includes much of the western US, western China and eastern Russia.
The figure below shows the temperature anomaly in the ERA5 dataset, relative to a more recent 1981-2010 baseline period. (ERA5 does not provide gridded data back to the pre-industrial era.)
In addition to temperature anomalies, it is useful to look at where new records have been set. The figure below shows each grid cell that saw one of the top-five warmest first-quarter periods on record, as well as the top-five coolest.
During the first quarter of 2026, 5.2% of the globe saw record warm temperatures, while virtually no place on earth had record cool temperatures. In addition, 24.3% of the globe was in the top-five warmest on record, whereas only 0.1% was in the bottom-five coolest on record.
On track to be second-warmest year on record
Carbon Brief estimates that the global average temperature in 2026 will be between 1.37C and 1.58C, with a best estimate 1.47C. This puts 2026 on track to likely be the second warmest year on record, though it could potentially be as high as the warmest or as low as the fourth warmest.
This is based on the relationship between the first three months and the annual temperatures for every year since 1970. The estimate also accounts for El Niño and La Niña conditions seen in the first three months of 2026, as well as how El Niño conditions are projected to develop across the rest of the year.
The analysis includes a wide range of possible outcomes in 2026, given that temperatures from only the first quarter of the year are available so far.
The chart below shows the expected range of 2026 temperatures using the Carbon Brief average of groups – including a best-estimate (red) and year-to-date value (yellow). Temperatures are shown with respect to the pre-industrial baseline period (1850-1900).
Carbon Brief’s projection suggests that 2026 is virtually certain to be one of the top-four warmest years, with a best-estimate – a 62% chance – that it ends up between 2024 and 2023 as the second-warmest year on record.
However, there remains a 19% chance that 2026 will be the warmest year on record – beating the prior record set in 2024. There is also a 19% chance that it will end up as the third- or fourth-warmest year.
The chances of a record-breaking year depends on the strength of El Niño, as well as how rapidly global temperatures warm up as El Niño develops.
There is also a roughly 30% chance that 2026 will be the second year that exceeds 1.5C above pre-industrial levels.
While the development of a strong or “super” El Niño will give a boost to 2026 temperatures in the latter part of the year, its largest effects will likely be felt in 2027.
Historically, the year where El Niño develops has been warmer than usual, but the year that follows the phenomenon’s winter peak – for example, in 1998, 2016 and 2024 – is record-setting.
This is because there is an approximately three-month lag between the peak of El Niño conditions in the tropical Pacific and the maximum global surface temperature response. If a super El Niño develops this year, it is likely that 2027 will set a new record.
Record-low winter Arctic sea ice
Earlier this year, Arctic sea ice saw the joint-smallest winter peak in a satellite record going back almost half a century.
Sea ice extent peaked for 2026 at 14.29m square kilometres (km2) on 15 March, marking a “statistical tie” with a record low recorded the year before, according to the US National Snow and Ice Data Center (NSIDC).
The figure below shows both Arctic and Antarctic sea ice extent in 2026 (solid red and blue lines), the historical range in the record between 1979 and 2010 (shaded areas) and the record lows (dotted black line).
(Unlike global temperature records, which only report monthly averages, sea ice data is collected and updated on a daily basis, allowing sea ice extent to be viewed up to the present.)
Arctic sea ice set new record daily low values during periods of January, March and early April. Antarctic sea ice did not set any new records so far in 2026, but remains on the low end of the historical (1979-2010) range.
The post State of the climate: Strong El Niño puts 2026 on track for second-warmest year appeared first on Carbon Brief.
State of the climate: Strong El Niño puts 2026 on track for second-warmest year
Climate Change
Solar surge kept fossil electricity flat in 2025 as China and India made ‘historic’ shift
A record surge in clean power met all global electricity demand growth in 2025, preventing any increase in fossil fuel generation, according to energy think tank Ember.
Solar led the expansion, recording its fastest growth rate in eight years and meeting around 75% of new electricity demand alone.
Together with wind, hydropower and other low-carbon sources, the solar surge drove clean generation to rise by 887 TWh, slightly exceeding demand growth of 849 TWh and pushing fossil generation down by 0.2%, Ember said in a report published on Tuesday.
Much of this shift was driven by China and India, where rapid clean energy expansion outpaced electricity demand growth, leading to declines in fossil generation in both countries for the first time this century.
IEA slashes pre-war oil demand forecast by nearly a million barrels per day
“We have firmly entered the era of clean growth,” said Aditya Lolla, Ember’s managing director.
“Clean energy is now scaling fast enough to absorb rising global electricity demand, keeping fossil generation flat before its inevitable decline,” Lolla added.
China and India lead the way
A key driver of the global shift was a “historic” reversal in China and India, the largest contributors to fossil power growth over the past two decades, Ember said.
For the first time this century, electricity generation from fossil fuels fell in both countries in the same year, tipping the global balance.
In China, fossil generation dropped by 0.9%, its first decline since 2015, as rapid additions of solar and wind outpaced rising demand. In India, fossil generation fell by 3.3%, driven by record increases in solar and wind, strong hydro production and relatively slower demand growth.
This shift helped push renewables to around 34% of global electricity generation in 2025, overtaking coal for the first time in the modern era.
“China’s rapid expansion of solar and wind is meeting rising electricity demand at home while influencing the global electricity transition,” said Xunpeng Shi, president of the International Society for Energy Transition Studies.
“As the world’s largest builder of clean power, China’s progress is showing how growing demand can increasingly be met with clean electricity rather than fossil fuels,” Shi added.
Solar leading global energy supply growth
Reinforcing Ember’s findings, new analysis from the International Energy Agency (IEA) showed on Monday that solar has become the single largest driver of global energy supply growth, beyond the electricity sector.
In its latest Global Energy Review, the IEA found that solar PV accounted for more than a quarter of the increase in global energy demand in 2025, making it the first time any modern renewable source has taken the top spot.
The agency also reported that solar recorded the largest annual increase ever seen for any electricity generation technology.
Q&A: Will subsidy cuts for Chinese clean-tech exports hurt Africa’s solar boom?
Ember’s Lolla said clean energy is “redefining the foundation of energy security in a volatile world,” adding that “it is already helping countries reduce exposure to fossil fuel imports and costs while meeting rising electricity demand”.
‘Antidote to fossil fuel cost chaos‘
As the war in the Middle East disrupts global oil and gas supplies, the head of UN Climate Change, Simon Stiell, said the current crisis underscores the risks of fossil fuel dependence and the need for more secure, domestic energy sources.
“Wars don’t disrupt the supply of sunlight for solar power, and wind power does not depend on vulnerable shipping straits,” Stiell said.
Speaking at the opening of the Green Transformation Week conference in South Korea, Stiell encouraged countries to accelerate the transition to clean energy to regain control of their economies and national security.
Nigerians bet on solar as global oil shock hits wallets and power supplies
“War has once again revealed the soaring costs of fossil fuel dependency,” he said, warning that volatile energy markets are “holding economies around the world in a chokehold.”
“Clean energy is the antidote to fossil fuel cost chaos, because it is cheaper, safer and faster-to-market,” he added.
The post Solar surge kept fossil electricity flat in 2025 as China and India made ‘historic’ shift appeared first on Climate Home News.
Solar surge kept fossil electricity flat in 2025 as China and India made ‘historic’ shift
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