The Biden administration is set to modify electric vehicle (EV) transition goals in response to industry concerns. Anticipated in March, the Environmental Protection Agency (EPA) is expected to reveal reduced targets for the percentage of new car sales represented by EVs by the end of this decade.
Reportedly, the Biden administration is considering easing its previously announced targets for reducing vehicle emissions and increasing electric vehicle (EV) sales by 2030, following significant pressure from automakers and the United Auto Workers (UAW), as per Reuters.
In April 2023, the Environmental Protection Agency (EPA) proposed a plan requiring a 56% reduction in new vehicle emissions by 2032. This plan also aimed for an assertive transition to EVs, targeting 60% of new vehicle production by 2030 and 67% by 2032, as part of a broader strategy to combat climate change through reduced tailpipe emissions.
However, in response to concerns from the automotive sector about the feasibility of these targets, the EPA is expected to dial back the pace of these yearly requirements. According to insider sources, the revised regulation, potentially announced in March, is likely to establish a less ambitious benchmark for EV production, falling short of the initial 60% target by the end of the decade.
The UAW, a supporter of President Joe Biden, voiced concerns that the original EPA proposals could jeopardize auto jobs, calling for a more gradual increase in regulatory strictness. Similarly, the Alliance for Automotive Innovation, representing significant automakers like General Motors, Ford, and Toyota, criticized the initial targets as “neither reasonable nor achievable,” proposing a more moderate goal of 40% to 50% for electric and plug-in electric vehicles by 2030. This position aligns with the current market share of EVs, standing at around 8% in 2023.
John Bozzella, CEO of the Alliance for Automotive Innovation, stressed the importance of the upcoming years for the EV market, advocating for a balanced approach allowing the market and supply chains to adapt. This includes expanding public charging infrastructure and utilizing policies like the Inflation Reduction Act to facilitate the industry’s transition.
The EPA’s revised proposal is currently undergoing review, with an agency spokesperson stating the goal is to finalize a rule that is “readily achievable” and promotes reductions in air pollution while ensuring economic benefits.
