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Renewable Energy In The Auto Industry: Can RegTech Keep Up?

In the charge toward a low-carbon economy, automotive manufacturers and car owners have had a lot to consider. According to Reuters, the most recent rule change has rolled back laws allowing the use of tailpipe rules that impact ethanol-based fuel generation and use.

While the auto industry association, The Alliance for Automotive Innovation, has embraced these changes, they have accepted the significant risk posed by the change to the industry. This partially highlights the risk posed by insufficient RegTech to support new compliance needs.

Cross-State Confusion

Some new auto laws create difficulties in cross-state compliance. The California internal combustion engine (ICE) ban is one of the biggest electric vehicle-minded laws. According to the New York Times, the state will ban all new ICE car sales by 2035.

This may seem straightforward, but it has implications across state lines, given the national nature of car manufacturing. Indeed, states, including Texas and the Dakotas, have complained about the potential impact on business in their states.

Flexible RegTech Platforms Will Help

Accordingly, flexible and agile RegTech platforms that have the ability to move between states and embrace conflicting priorities quickly will benefit. It will be necessary to help companies throughout the auto industry to adapt to these changes.

The regulatory environment is likely to change rapidly and include hostile partners taking a dim view of the regulations; knowing this ahead of engaging with the market is crucial.

Matching Up With Automation

As EVs start gaining further traction across the USA, so will the push for automated cars. This is already a regulatory minefield, and differences in state-by-state regulation make it difficult to properly account for and match compliance needs in every corner of the country.

As The Verge highlights, self-driving cars are being lauded as there to be driven without a license. Once again, RegTech will help companies and drivers understand exactly how this will impact them and make informed decisions on and off the road.

Tracking Innovation

Underlying all of these vehicles is the automotive powertrain. As a recent business press release published by Yahoo highlights, the market for such technology is already approaching $720 million in size – and with that comes a significant amount of inter-market competition.

The Rapid Advancement Of Innovation

Innovation is rapidly advancing, and that will lead to tangles between auto manufacturers and researchers.

RegTech will again be at the forefront in ensuring that rules are met during innovation and production cycles and that proper attention is given to all relevant factors during that important process.

RegTech Can Help To Bring Calm

The auto industry is changing at a more rapid pace than ever before. The fight between states and federal authorities on how to imagine and enforce new low-carbon laws is leading to conflict across the country.

This is a regulatory nightmare and an opportunity for innovative new RegTech to take the lead and show a little calm.

SaraZ

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