SUVs could offset benefits from electric cars

Based on countries’ stated intentions, targets and existing measures, the rises in greenhouse gases slow but do not peak before 2040.
France Climate World Energy
An SUV. The world’s thirst for oil will continue to grow until the 2030s. (Michel Euler/AP)

Experts are warning that the continued popularity of SUVs could offset any benefits gained from electric cars.

In its annual World Energy Outlook, the International Energy Agency (IEA) said that if the popularity of SUVs continued to rise in line with recent trends this could add another two million barrels of oil a day to its 2040 oil demand projection.

The IEA said that in a scenario based on countries’ stated intentions, targets and existing measures, the rises in greenhouse gases slow but do not peak before 2040.

But a scenario which delivers sharp emissions cuts and meets the goals of curbing rising temperatures would need rapid and widespread changes across all parts of the energy system, the report added.

If the popularity of SUVs continues to rise in line with recent trends, this could add another two million barrels per day to our projection for 2040 oil demand.

Under this sustainable development scenario, electricity would overtake oil by 2040 as the leading source of energy, as electric vehicles take off, and most of the increase would come from wind and solar power.

But the report warns that the growing demand for bigger and heavier cars was already adding extra barrels to global oil consumption.

It added: “Consumer preferences for SUVs could offset the benefits from electric cars.

“The growing appetite among consumers for bigger and heavier cars (SUVs) is already adding extra barrels to global oil consumption.

“SUVs are more difficult to electrify fully, and conventional SUVs consume 25% more fuel per kilometre than medium-sized cars.

“If the popularity of SUVs continues to rise in line with recent trends, this could add another two million barrels per day to our projection for 2040 oil demand.”

Many UK companies are working on the products or services that assist in realising the potential of electric vehicles in the UK – and the government wants them to succeed. Offering incentives for innovative businesses like R&D tax credits or Patent Box rewards these businesses for their innovations – if you feel like you’re working in this area and creating something new or improved, then get in touch to find out how we could work together.

Talitha Heaton
Author:
Talitha Heaton Marketing Executive

My role in the marketing team is relatively varied – which is something I love about working at MPA. Recently, I’ve worked on our new brand as well as the development of Nova, our new service offering. In marketing, we’re always trying to find better, more effective ways of communicating with innovative businesses across the UK. Our aim is to raise awareness of the support available to these businesses and ensure receiving that support is as easy as possible.