President Biden today announced that the U.S. Environmental Protection Agency and the Department of Transportation will reinstate more ambitious Corporate Average Fuel Economy (CAFE) standards after being rolled back by the Trump administration.
Biden also announced the signing of an executive order for 50% of all new vehicles by 2030 to be either battery electric, plug-in hybrid electric, or fuel cell. Emissions from transportation account for approximately 29% of U.S. greenhouse gas emissions — bigger than electricity generation or industry.
Investors are highly supportive of this step toward cleaner transportation and opposed the Trump administration rollbacks. Multiple major auto manufacturers, including Ford and GM, issued a statement in support of Biden’s announcement.
Andrew Behar, CEO of As You Sow, said, “Biden’s new fuel economy standards show needed leadership. It is common sense to support the American auto industry to be at the forefront globally in the clean energy transition.”
Daniel Stewart, Energy & Climate Program Manager of As You Sow said, “These standards will have a variety of positive effects including a reduction in climate impacts of the transportation industry, decreasing air pollution, and providing consumers with cost savings on vehicles and fuel. Investors welcome these smart policy steps, which support a more rapid transition to a zero-emissions economy while providing good jobs and superior products.”