From forest fires driving residents out of California to freezing water pipes in Texas to a scorching heat wave putting lives at risk in India, our planet is warming and the daily impacts of climate change are becoming more difficult to ignore. In addition to impacting how we live, climate considerations are driving changes in how we conduct business and shaping the future development of major industries around the world.

Consider the most recent United Nations climate report, which reminds us of what’s at stake for the global automotive industry — and by extension, what’s at stake for Michigan and similarly situated states and provinces. While worldwide greenhouse gas emissions from transportation grew at an average of 2 percent a year between 2010 and 2019, the U.N. report highlights hopeful signs of progress.

For example, electric vehicles are the fastest-growing segment of the auto industry. Nearly 9 percent of new vehicles sold last year worldwide were electric, up from 2.5 percent in 2019, according to the International Energy Agency. As we know, battery-powered cars charged by low-carbon electricity can significantly reduce emissions.

In response to this evidence and national government policies in the U.S., Canada and elsewhere, automakers and their suppliers are making once-in-a-generation investments to accommodate the accelerated conversion from the internal combustion engine to EVs.

The mission is so critical that automakers are forming partnerships and joint ventures to share costs, talent and capabilities to develop the technology needed to power the future of mobility.

At the same time, automakers are making significant investments to integrate smart, connected technologies into EVs and traditional internal combustion-engine vehicles. In important aspects, the next-gen vehicle is becoming the embodiment of the climate response, an Internet of Things device on wheels.

As the birthplace of mobility, Michigan recognizes that this change is creating unprecedented opportunity because of the accelerated intersection of the mobility, technology and entertainment sectors within the vehicle. Today’s decisions as we navigate this electrification transition will greatly influence the economic fortunes for our 10 million residents for the coming decades.

The Michigan Economic Development Corp. is committed to not only maintaining the state’s leadership in the U.S. auto industry but also growing the state’s assets in all mobility industry sectors.

A part of our strategy is investing in financing the retooling and expansion of the manufacturing supply chain in Michigan. These financial incentives reduce risk for companies and respond to the realities that joint venture partners from outside of North America enter the market with a different set of expectations for government support and co-investment. Creatively structured and prudently deployed, these incentives position Michigan to have the infrastructure, people and other assets required to win the future of passenger mobility and continue creating well-paying jobs.

The latest example is the local and state support of LG Energy Solution’s $1.7 billion investment in Holland. The company plans to expand its existing facility by 1.4 million square feet and create 1,200 jobs to help produce battery components for the growing EV industry.

LG Energy Solution’s expansion announcement comes just two months after General Motors announced its historic $7 billion investment in the state that includes retooling its Orion assembly plant in suburban Detroit to produce up to 360,000 electric trucks and build a third U.S. Ultium battery-cell plant, a joint venture between GM and LG Energy Solution, in Lansing.

LG Energy Solution’s selection of Michigan highlights the state’s inherent advantages as a business location, especially as extreme weather and water scarcity are becoming bigger business-location factors. Michigan is largely protected from catastrophic weather events and surrounded by nearly 20 percent of the world’s freshwater supply.

As the share of EVs increases, the opportunities for Michigan extend beyond battery development and manufacturing. We have aggressively addressed these opportunities with the creation of the Office of Future Mobility and Electrification, which has brought companies addressing the need for charging stations and other infrastructure into our state.

In hiring one of the nation’s first chief mobility officers to lead the office, the state is rising to the challenge by investing in infrastructure, inventive partnerships and work force training.

Last year, Gov. Gretchen Whitmer and other Midwestern governors joined forces to build a network of EV charging stations. Michigan provides funding for qualified DC fast charging equipment, site preparation, equipment installation, network fees and signage. The federal Infrastructure Investment and Jobs Act is further boosting our efforts by providing $110 million over the next five years to expand Michigan’s charging network.

Nothing less than the future of the planet hinges on the success of this transition. By encouraging and supporting efforts to navigate the transition, Michigan is not only securing its economic future, but also making advances in a climate-sustainable future for our children and grandchildren.