California is poised to require 100 per cent of new vehicles sold in the state to be powered by electricity or hydrogen by 2035. AP
California is poised to require 100 per cent of new vehicles sold in the state to be powered by electricity or hydrogen by 2035. AP
California is poised to require 100 per cent of new vehicles sold in the state to be powered by electricity or hydrogen by 2035. AP
California is poised to require 100 per cent of new vehicles sold in the state to be powered by electricity or hydrogen by 2035. AP

California moves to ban petrol cars by 2035


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California has ruled that all new cars sold in the most populous US state must be zero-emission from 2035, in what was billed as a nation-leading step to slash the pollutants that cause global warming.

The move has been hailed by environmentalists, who hope it will prompt other parts of the country to accelerate the adoption of electric vehicles.

Until the total ban in 13 years' time, the rules demand that an ever-increasing percentage of new cars sold to California's 40 million inhabitants produce no pollutants.

"The timeline is ambitious but achievable: by the time a child born this year is ready to enter middle school, only zero-emission vehicles or a limited number of plug-in hybrids will be offered for sale new in California," the California Air Resources Board said.

The board, which was asked to find a way to implement Governor Gavin Newsom's order to transition the state's automotive sector, said the health benefits would be significant.

"By 2037, the regulation delivers a 25 per cent reduction in smog-causing pollution from light-duty vehicles," it said.

"This benefits all Californians but especially the state's most environmentally and economically burdened communities along freeways and other heavily travelled thoroughfares."

Tesla Cybertruck - in pictures

From 2026 until 2040, the regulation is expected to result in 1,290 fewer cardiopulmonary deaths, 460 fewer hospital admissions for cardiovascular or respiratory illness and 650 fewer emergency hospital visits for asthma, it said.

California already accounts for the lion's share of electric vehicles in the US, with 1.13 million on the state's roads — 43 per cent of the nation's total.

Ten years ago, only 2 per cent of new cars sold in the state were electric; that figure is now 16 per cent and Teslas and other premium offerings — with a range of hundreds of miles — are a common sight on roads around Los Angeles and San Francisco.

Still, the vehicles remain more expensive than their fossil fuel-powered equivalents and critics say only federal subsidies of up to $7,500 make them viable for many buyers.

But supporters say the incentives are necessary short-term supports that will fade away as increased adoption boosts economies of scale and drives down prices.

Thursday's ruling comes after a climate law signed last week by US President Joe Biden, which sets aside hundreds of millions of dollars in incentives for clean energy programmes.

In recent years jurisdictions around the world, notably in Europe, have set their sights on the polluting car sector.

Norway aims to have all new cars produce zero emissions by 2025.

The UK, Singapore and Israel are eyeing 2030, while the European Union wants to end the sale of new petrol and diesel cars by 2035.

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Pakistan v New Zealand Test series

Pakistan: Sarfraz (c), Hafeez, Imam, Azhar, Sohail, Shafiq, Azam, Saad, Yasir, Asif, Abbas, Hassan, Afridi, Ashraf, Hamza

New Zealand: Williamson (c), Blundell, Boult, De Grandhomme, Henry, Latham, Nicholls, Ajaz, Raval, Sodhi, Somerville, Southee, Taylor, Wagner

Umpires: Bruce Oxerford (AUS) and Ian Gould (ENG); TV umpire: Paul Reiffel (AUS); Match referee: David Boon (AUS)

Tickets and schedule: Entry is free for all spectators. Gates open at 9am. Play commences at 10am

The specs

Engine: 2.0-litre 4-cyl, 48V hybrid

Transmission: eight-speed automatic

Power: 325bhp

Torque: 450Nm

Price: Dh289,000

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

Kathryn Hawkes of House of Hawkes on being a good guest (because we’ve all had bad ones)

  • Arrive with a thank you gift, or make sure you have one for your host by the time you leave. 
  • Offer to buy groceries, cook them a meal or take your hosts out for dinner.
  • Help out around the house.
  • Entertain yourself so that your hosts don’t feel that they constantly need to.
  • Leave no trace of your stay – if you’ve borrowed a book, return it to where you found it.
  • Offer to strip the bed before you go.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The biog

Year of birth: 1988

Place of birth: Baghdad

Education: PhD student and co-researcher at Greifswald University, Germany

Hobbies: Ping Pong, swimming, reading

 

 

Updated: August 26, 2022, 7:29 AM