There has been a lot of discussion lately about countries like Malta that can benefit from the enormous waves of technological change engulfing the world. One of the clearly visible lessons from recent technological revolutions is that countries and cities that embrace change are the most likely to benefit. In California, it is obligatory that vehicle manufacturers sell zero emissions cars and has required utilities to buy an ever-increasing portion of their electricity from zero emissions sources. These regulatory requirements have had a strong impact in addressing climate change and encouraging the growth of clean technology in the automotive industries.

Malta may not be the same size and scale as California, but it too can become a technology hub while addressing one of its own key challenges: the enormous and costly impact of having too many cars and too much traffic. At EY's Malta Attractiveness Event held earlier this week, my colleagues and I proposed an aggressive programme for Malta to become a leader in both blockchain technology and artificial intelligence by embracing the rise of electric, autonomous vehicles.

Individually owned, fuel-powered vehicles are a huge waste of time and resources, but one for which that we haven't had much alternative until recently. The average car costs about €8,000 per year to own and operate, but sits parked about 80 per cent or more of the day. Sharing cars has historically been difficult because of the hassle of sharing keys and finding parking. In many parts of the world, the adoption of electric vehicles has also been slowed by concerns about the range enabled by batteries.

Autonomous electric vehicles make sharing a car simple and feasible, being able to pick up customers and drive themselves to and from both charging and customer locations. As a shared resource, they are inexpensive when fractionally owned and we believe they will reduce the need for total car volume by as much as 50 per cent. Electric, autonomous cars don't pollute, they need far less parking space and they also need less road capacity, as they don't need to space themselves out when driving. They are also far safer than human drivers, who are easily distracted.

Safer, cleaner, cheaper? The future sounds great, but the question is when it will arrive. We propose that the government of Malta combine many of the initiatives that are already in place in different parts of the world into a single, integrated programme to bring this future forward. Such a programme would have five key components: First, a legislated and accelerated end to sales of new, gas powered passenger vehicles. On a small island with limited driving distances, this could come as soon as 2020, 10 years before other countries considering such a ban. 

Second, a robust legal and infrastructure plan for shared, electric vehicles. That means instead of spending heavily on new roads, Malta would invest in electric charging infrastructure and convenient, free public parking for shared vehicles.

Third, a framework for testing and certifying autonomous cars and upgrading road signs and markings to support autonomous vehicles. California and many other US states have done this and as a result, it has become common for me to see several autonomous cars every day on their test drives through the city.

Fourth, a national blockchain-based digital infrastructure for registering and managing vehicle ownership, usage and charging. One system can handle all the vehicle interactions and make it possible for anyone to own a portion of a car, have a "mobility wallet" to pay for usage, and the cars themselves can pay for maintenance and power automatically.

Finally, Malta should cap the number of passenger vehicles as Singapore has done and start reducing that cap continuously to require that fewer cars be sold in the country. This will accelerate a shift away from private ownership to shared usage.

The benefits for Malta for such an aggressive programme would be enormous, and not just for the environment or infrastructure. Shifting from having to own a whole car at a cost of €8,000 per year to having a quarter share of a car could save most people huge amounts of money. Above and beyond the direct benefits, the regulatory requirement for transformation will force companies to invest in and build new skills and assets here in Malta first, before applying those to the rest of Europe.

Leadership is scary. Many people in California felt that forcing carmakers to sell zero emissions vehicles would be a disaster. Powerful companies spent millions trying to persuade voters and regulators this was a bad idea. It wasn't and fortunately, innovators in Silicon Valley like Elon Must felt differently. We urge Malta to act boldly.

 

To find out more on EY's Annual Attractiveness Event and results visit http://www.ey.com/mt/en/home/ey-attractiveness-survey-malta-2017

 

Paul Brody is EY's Global Blockchain Leader