Climate Goals, Electric Vehicles, and CRE: What You Need to Know
By Natalie Jones / 10.13.21 / 3 min read
Governments and companies across the world have become increasingly focused on establishing new regulations that are in line with climate goals. Recent national initiatives are designed to support renewable energy use and reduce emissions. According to Wealth Management, investments in energy infrastructure can contribute to a sustainable future in several ways: providing for a growing population, storing and transporting natural gas to alleviate long-term use of carbon-based fuels, utilizing pipelines that carry low-emission fuel sources, and maintaining a strong transmission and distribution network.
Locally, the Lansing Board of Water & Light (BWL) has started working toward its goal of being “carbon neutral” by 2040, meaning that BWL’s carbon emissions will be offset by lower BWL emissions in a different location.
The conversations surrounding climate goals are also going to impact commercial real estate as electric vehicles gain more attention.
Electric vehicle charging stations are intended to keep up with innovative car designs, but they are also a tool that will aid in the desired sustainable future. New national efforts call for 50% of vehicles sold in the United States to be able to operate without emissions by 2030 and for $7.5 billion to be allocated to EV charging stations. A growing proportion of electric vehicles will call for more charging stations at convenient locations which includes multifamily, office, retail and industrial properties. These reasons support the argument that property owners will need to consider installing these at their properties.
However, the process for making this happen involves careful consideration to ensure that the right charger ends up in a location that works well for drivers. Since Level 2 chargers take longer to fully charge a car, they are best suited for places where people spend long hours such as multifamily and office properties. Level 3 chargers, which are costly but don’t need as much time, make sense for shorter trips at retail locations, industrial facilities, bus depots, and roadside stops.
Tesla has led the way in the mission to grow EV charging stations by allowing their chargers to be usable for any electric vehicle through the Tesla app. The company currently has 10,000 charging stations throughout North America. Other companies including ChargePoint, Blink Charging and Volkswagen subsidiary Electrictyy Americas have plans to add charging stations to not only stay competitive with Tesla but to meet the demand for these.
Long-term climate goals paired with investments in electric vehicles mean that EV charging stations are bound to be ubiquitous years from now, adding an important feature to a range of commercial real estate properties. To read our sources, click here: