These requirements are more stringent than to Obama-era figures.
Automakers say they will require strong governmental support to achieve these obligations.
The EPA has just released its emission standards and they are extremely aggressive. Greenhouse gas emissions reduction requirements will aim for between a 5% to 10% increase in stringency for 2023 to 2026. This goal will be to reach a fuel-economy fleetwide average of 40 mpg in 2026.
Specifically, emission reductions will need to increase by 10% by 2023. The following years will require an annual 5% improvement until 2026, matching Obama-era figures.
“EPA’s final rule for greenhouse gas emissions is even more aggressive than originally proposed, requiring a substantial increase in electric vehicle sales, well above the four percent of all light-duty sales today,” John Bozzella, CEO of the Alliance for Automotive Innovation, said in a statement.
OEMs with EVs will benefit from a credit “multiplier.” In other words, every EV sold will count more than once toward compliance according to The Detroit News.
“While the challenge before us is great, we are committed to achieving a cleaner, safer, and smarter future,” he said. “Achieving the goals of this final rule will undoubtedly require the enactment of supportive governmental policies — including consumer incentives, substantial infrastructure growth, fleet requirements, and support for U.S. manufacturing and supply chain development.”
Despite most automakers having pledged billions towards electrifying their fleets, these new rules could create points of contention. This could be especially true with Ford, GM, and Stellantis who’ve enjoyed a very affable relationship with President Biden.
