In a compromise with automakers and labour unions, the Biden administration plans to loosen parts of its most ambitious climate change initiative, a cap-and-trade program that seeks to encourage Americans to transition from gas-powered vehicles to electric ones, according to the New York Times.
The newspaper reported that Instead of requiring automakers to rapidly increase sales of electric vehicles within the next several years, the administration will give car makers more time, with steep increases not required until 2030, three sources told the paper, speaking on the condition of anonymity because the final rule has not yet been finalised.
The change comes at a time when President Biden is facing strong political pressure as he seeks re-election while simultaneously trying to address climate change. He wants to reduce carbon dioxide emissions from cars, which account for more than half of the total greenhouse gases released by the United States each year.
The Environmental Protection Agency (EPA) has previously proposed the most stringent tailpipe limits. The rules were so stringent that the only way automakers could meet them was to sell hundreds of thousands of new zero-emission vehicles over a relatively short period of time.
By 2032, 67% of new car sales and 67% of light-duty truck sales will be all electric, up from just 7.6% in 2023.
This is a game-changer for the American auto market, and the goal remains the same. However, as the administration finalizes the regulations, officials are amending the plan to gradually reduce the rate at which automakers would have to comply, with electric vehicle sales increasing gradually through 2030, but then exploding.
