Hi Hives,

Image source Canadian Auto dealer

I can see that these days all big cities around the globe, hurrying to adopt electronic vehicles. Just like cryptocurrencies are new-age money, EVs are new-age transportation mediums. It is important from nature's perspective as well. It reduces carbon footprint and keeps the temperature, air quality, and local flora-fauna in good condition as well. But there are more reasons for the adoption of EVs. Adoption of EVs on large scale is not only benefitting you but also the government. Let me give you a picture of my country, and how EVs are helping not only people but the government as well.

Reducing crude oil import

My country i.e India is heavily relying on crude oil imports from central Asia. It has the highest weight when it comes to the total amount of imports we are having. We know there are international sanctions on many countries to restrict trade and that is done to align every country with a common vision of achieving and doing the best for humanity. However, It also reduces the options that we have to get the requirement of crude oil fulfilled. By adopting EVs we are reducing our imports and hence our fiscal deficit will reduce. It will help us to visualize our dependence on other countries and will get us in a better position to deal with them in terms of diplomacy. Currently, crude-oil import is standing at $59 Billion. Reducing crude-oil imports will help us in managing our current account deficit.

ESG Funds

ESG i.e. Environment-Social-Governance fund is a type of fund which is invested in projects when certain criteria are reached and these criteria reflect the work towards ensuring a safe and sustainable environment. Developed countries are now using these funds to reward the developing countries who are taking effective measures towards curbing pollution and ensuring a safe and sustainable development project. ESG will benefit developing countries and act as an additional source of funds that is required to reach the SDG goals. ESG funds can also be targeted at a set of companies. So If a company maintains a decent position in terms of sustainable development and environment conservation then these funds can be availed which will be at cheaper interest rates. Hence many Indian companies are availing these sources to bring more capital and expand their business.

Fulfillment of SDG Goals

SDG goals are the parameters that every country has to fulfill by 2030. 7 out of 17 SDGs are directly linked to environmental conservation. 3 are indirectly related to the such campaign. So in total 10/17 SDGs requires steps that must be taken toward the environment. By introducing EVs as early as possible we will be on right track toward achieving these goals and in the future, it will also place us in carbon-trading market - a new form of financial service linked to carbon footprints. It can leave us with ample amounts of carbon credits that we can trade with other countries that will be releasing more carbon into the environment because of their rapidly developing nature.

It's a win-win situation if the adoption rate of EVs doesn't decline in near future.

Thank you

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