By helping to diversify the fuel mix, EVs reduce dependence on petroleum and tap into a
source of electricity that is often domestic and relatively inexpensive. Just as important,
EVs have the potential to unlock innovation and create new advanced industries that
spur job growth and enhance economic prosperity.

In the long-term, EVs are important to countries seeking to decarbonise the transport
sector. Figure 1 illustrates the key role of transport CO2 reductions in the International
Energy Agency’s (IEA) “2DS” scenario (2°C Scenario), which describes a future energy
system that would limit average global temperature increases to 2°C by 2050. In this
scenario, the transport sector’s potential share of overall CO2 reductions would be 21%
by 2050. In order to meet this share, three-fourths of all vehicle sales by 2050 would
need to be plug-in electric of some type.

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