Obama's National Goal of One Million EVs by 2015

In his 2011 State of the Union address, President Obama put forward his goal of putting one million EVs on American roads by 2015. This will help in the transition away from fossil fuel powered vehicles which are the second largest source of global warming causing pollutants. Although a far cry from the national green initiative that Obama has compared to the Apollo program, it is an important first step on the road away from fossil fuels.

Unlike the Apollo program, we already possess the technology and one million EVs is a modest goal given that this represents one third of one percent of the quarter of a billion vehicles in the US. One million electric cars represent less than 10 percent of the current annual automotive sales.

One of the challenges associated with goal of one million EVs was exposed in a February 2011 report out of Indiana University, titled “Plug-in Electric Vehicles: A Practical Plan for Progress.” (pdf). The study indicates that automakers currently have no plans to meet the President's 2015 goal.

This contridicts a Department of Energy report that said: "The production capacity of EV models announced to enter the U.S. market through 2015 should be sufficient to achieve the goal of one million EVs by 2015." The report also notes that 1.6 million hybrids have been sold over the past six years.

Obama's goal is of crucial importance because it will help to grow EV production as well as test the technologies and the supporting infrastructures. It will also help EVs benefit from cost and price reductions associated with mass production.

Moving towards EVs is of paramount importance to the environment and America's competitive positioning. Unlike the Apollo program, the government's support of EVs provides tangible benefits like reducing dependence on foreign oil and curbing greenhouse gases. All things considered, one million EVs by 2015 is a modest and attainable goal. Whether or not we have one million EVs on the road in the US by 2015 does not matter as much as the building momentum for an America free of fossil fuel powered vehicles.

© 2011, Richard Matthews. All rights reserved.

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The State of the Sustainable Furniture Industry

While the furniture industry has made great strides in recent years, there are major impediments preventing the industry from going green. This was illustrated at the recent Canadian Home Furnishing Market (TCHFM) trade show that took place in Toronto, Canada between January 14 and 18, 2011. TCHFM is the oldest and most prestigious furniture trade fair in Canada and although it is a showcase for upcoming trends, with very few exceptions, green furniture was conspicuously absent at this year's show.

The trade show revealed that while the furniture industry may be getting greener, increased costs, a slow economy, consumer ignorance, and the absence of American legislation are making it harder for furniture manufacturers to go green.

One sustainable furniture manufacturer that was present at the TCHFM trade show was Greenington LLC. They manufacture a wide range of highly aesthetic quality furniture using only Moso bamboo which is stronger and harder than Oak. From processing the raw bamboo to the final product, they are ISO 9001 and ISO 14001 certified. With more than 14 years experience, they are the leading sustainable furniture company in the industry.

With the exception of companies like Greenington, there was very little green on display at the TCHFM trade show. The sad truth is that most furniture manufacturers are not very green. At the show, some manufacturers voiced the concern that if they market green furniture, they will be accused of greenwashing due to the fact that others aspects of their furniture manufacturing are not very green.

Two primary certification boards help the furniture industry manage the issues surrounding environmental sustainability:

1. The Sustainable Furnishing Council (SFC) provides clarification and resources on furniture that is green, eco-friendly, environmentally safe and sustainable. SFC is the number one organization in green furnishings, it is a non-profit coalition of suppliers, manufacturers, retailers, and designers formed to promote sustainable practices with the best networking and education in the industry.

Their education programs include GREENleaders Certified Sustainability Training program which is offered as a live 6-hour program at various locations. This is the most comprehensive training program available in green home furnishings, it provides manufacturers, reps, retailers and designers with the knowledge and credentials to become experts in sustainability.

SFC also provides searchable resources to:
Find a green manufacturer
Find a green retailer
Find a green designer

2. The Forest Stewardship Council (FSC) helps to reduce the environmental impact of harvesting wood including furniture made from wood. This organization reduces habitat destruction, water pollution and the displacement of indigenous peoples due to logging. Members who have earned FSC certification improve the practice of forestry by reducing the negative impact of logging through managing and protecting forests. Products bearing the FSC logo, guarantee that the wood is from a certified well-managed forest.

FSC also provides searchable resources to
Find FSC-certified products
Find FSC retailers
Find FSC certificate holders

The efforts of the SFC and the FSC have proven insufficient on their own. Furniture manufactures indicate that they are waiting for legislation before they go green, while at the same time they decry the new green standards introduced in California.

California has adopted new regulations that restrict the use of formaldehyde in particle boards used in furniture construction. Formaldehyde is widely used in particle boards but the International Agency for Research on Cancer (IARC) has classified formaldehyde as carcinogenic to humans. California's Air Resources Board (ARB) found that one of the major sources of exposure to formaldehyde is from composite wood products like particle boards.

In California new emission standards were implemented on January 1, 2009, they reduce formaldehyde emissions from furniture and other composite wood products.

These new rules have significantly increased costs for manufacturers. According to one manufacturer at the TCHFM trade show, the new emissions standards have increased their costs by approximately 6%. The same manufacturer noted that consumers are oblivious to the increased cost of manufacturing as well as the new composite wood product rules.

Increased costs are causing many manufacturers to resist the trend towards more environmentally responsible furniture, however California may offer a glimpse into the future of furniture manufacturing.

The best way to move forward is to help the sustainable furniture industry grow so that it can benefit from economies of scale, (reduced cost of production due to mass production). Both manufacturers and retailers can help grow the sustainable furniture market by educating themselves as well as consumers.

Perhaps most importantly, legislation is required to mandate these standards on a national level. However, furniture manufacturers that wait for legislation risk being punished in the marketplace if they are perceived as coming to the table too late.


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The Value of Electric Vehicle Subsidies

Electric Vehicle (EV) subsidies are short term means of accelerating the introduction of low emission vehicles so that they can benefit from economies of scale. Direct subsidies or EV tax credits can be phased out when the technology is a bit more mature and volume production is lowering prices.

According to a poll by Ernst & Young, thirty-four percent of US respondents said they would be willing to subsidize charging stations for hybrid and electric cars.

Governments around the world are subsidizing EV development. In Ireland, the Government wants to see 10% of vehicles running on electric power by 2020. To support the increase in EVs, the Green Party minister for Energy, has announced a scheme to deploy 1,500 electrical recharging stations.

In a bid make Britain "the European capital for electric cars," the then UK Prime Minister Gordon Brown pledged £100 million in government money to support greener cars including electric and hybrid vehicles. In July 2010, the UK also announced it would subsidize buyers up to 25% or £5000 for EVs starting in January 2011.

As of June 2009, consumers in Japan who purchased an electric vehicle can receive subsidies for as much as one third of the car's cost. EVs and hybrids, are also exempt from taxes for three years in Japan.

Critics tend to exaggerate the cost of EV subsidies without considering the advantages. It is absurd that the oil, coal, and gas industries that are responsible for global warming get vastly more public funds than zero emission electric cars.

Although it makes sense to clean up the power grid, even when charged with electricity that partly comes from coal plants, EVs are still cleaner than internal combustion engine cars.

Subsidies for electric vehicles are needed, says auto industry analyst George Magliano, of IHS Global Insight. Acceptance of electric cars "will not occur without some sort of incentives, unless the price of the technology changes," he says. "People who are buying them today are basically people that want to make a statement. And without the push from the government, this is a difficult sell."

"Our own expectation is the costs will come down as we go through what engineers [call] 'generations of learning," Mike Robinson, GM's vice president for environment says. "We'll go through that on the battery technology; the motor technology; it will help drive costs down. And if the customer doesn't see value at the end of this, we won't be successful."

Subsidies will help to reduce the price of EVs so that they can penetrate the market and achieve economies of scales. This will also help fund research and development for technological breakthroughs.


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