The bottom line is full decarbonization has a relatively
low impact on end prices.
The way to think about this is: if we wanted to have a fully
decarbonized car, to take the first column, how much
incremental cost would that add relative to the end price of a car?
And I first assume, well, if I want a fully decarbonized car, I
must be adding 10% or 15% to the end price of a car.
As it turns out, it would add about $900.00 of cost on to the
price of a car.
But the average car by 2030, these are 2030 estimates, would
sell for about $35,000.
So it's slightly less than the 3% impact on the end price.
And then we went through other categories, fashion, food
construction, electronics. Construction, just in the recent
past, has gotten a bit more expensive.
It's up near 5%.
But all the other categories are, you know, in the 2% to 4%
range in terms of how much they add. It is not as much as you think.
And if you think, it's going to take 15 years to do this 2% to 4%.
So you say what's the inflationary impact of doing
this over 15 years?
If you could go as fast as you possibly could, we're talking
about .2% impacts, like these are not huge impacts.
Why is it so hard?
It's so hard because while this may be the end impact of cost on
price, if you're an intermediary, these aren't the numbers.
You know that if you're the steelmaker for a car, if you're
the plastic maker for shampoo bottle.
If you're any of those things, then those percentage increases
are much more.
It's when you take the overall impact on the supply chain.
And to me, it's the clearest illustration of why we have to
work together to solve this, that working alone, treating
each one as an isolated, parts of this will just seem unaffordable.
If we think about it across the entire value chain, it's not
cheap and it's not easy, but it feels much more doable than if
we take it on alone.