Will the 2050 target of net zero accelerate vehicle scrappage in the US?

We analyze the Biden administration’s ambitious climate objectives and evaluate the role of scrappage and fleet decarbonization in achieving net zero.

Ever since his first days in office, US President Joe Biden and his administration have proposed a sweeping climate agenda, including investments in clean energy and electric vehicles (EVs), to address the climate crisis and increase energy security in the US and around the world. The administration aims to deliver policies to accelerate deployment of zero-emission vehicles and charging infrastructure but is aware that several challenges and barriers, such as high costs for electric technologies, fueling, and charging infrastructure, exist. President Biden has set a target of making the US net carbon neutral by 2050. The government’s support through incentives and scrappage will be critical in achieving this ambitious goal even as several OEMs in the US move aggressively toward launching new battery-electric vehicle (BEV) models frequently. Vehicle scrappage in the US is currently at historic lows, and the country is one of the biggest markets in the world in terms of scrapped vehicles or end-of-life (EOL) vehicles. Through this insight, we analyze whether the US is on track to achieve its net-zero goals and the role of scrappage in achieving them.