EPA dilutes vehicle emissions standards

The Environmental Protection Agency (EPA) has released final vehicle emissions standards that have moderated the pace at which ICE vehicles will be phased out in the US when compared with the initial proposal.

The standards set a target of an industry-wide average fleet target of 85 g/mile of CO2 by 2032, with a phased in approach from 2027.

This compare to the previous target of 82 g/mile by the same date under the rules as initially proposed.

The EPA projects that by 2032 manufacturers will manufacture BEVs to meet 30-56pc of new light-duty vehicle sales and about 20-32pc of new medium-duty vehicle sales.

As initially proposed the rule would have meant manufacturers make 67pc of their US models electric by 2032. BEV sales were at around 9pc in 2023.

“Moderating the pace of EV adoption in 2027, 2028, 2029, and 2030 was the right call because it prioritises more reasonable electrification targets in the next few, very critical, years of the EV transition,” says John Bozzella CEO of the Alliance for Automotive Innovation. “The adjusted EV targets – still a stretch goal – should give the market and supply chains a chance to catch up.”

The targets also buys some time for more public charging to come online, the Alliance notes.

US EV sales growth has been slowing in recent months, causing some US auto manufacturers to slow their pace of transition.

The standards still represent a significant tightening from the current emissions regime, and by 2032 will results in a nearly 50 percent reduction in fleet average emissions levels compared to the existing standards.

The EPA projects they will result in a cumulative reduction of 7.2bn tonnes of CO2 between 2027 and 2032 — equivalent to four times the emissions of the entire transportation sector in 2021.

“With transportation as the largest source of U.S. climate emissions, these strongest-ever pollution standards for cars solidify America’s leadership in building a clean transportation future and creating good-paying American jobs, all while advancing President Biden’s historic climate agenda,” says EPA Administrator Michael Regan.

The EPA says the rule gives manufacturers the flexibility to efficiently reduce emissions and meet the performance-based standards through a mix of technologies that best suits them.