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Daily Newsletter

30 July 2025

Daily Newsletter

30 July 2025

US EPA proposes axing greenhouse gas rules that apply to motor vehicles

Latest move from Trump administration targets US federal regs – such as ‘electric vehicle mandate’ – that address greenhouse gas emissions rather than ‘tailpipe pollution’.

David Leggett July 30 2025

The US Environmental Protection Agency (EPA) has proposed ending rules that address the contribution of motor vehicles to climate change.

In a statement, the EPA said that its proposal would ‘repeal all resulting greenhouse gas emissions regulations for motor vehicles and engines, thereby reinstating consumer choice and giving Americans the ability to purchase a safe and affordable car for their family while decreasing the cost of living on all products that trucks deliver’.

Transportation is the largest source of direct greenhouse gas emissions in the US and for years the EPA has pushed vehicle makers in the US to reduce their contribution with steps that have included strict tailpipe standards and target a big transition to EVs and plug-in hybrids by 2030.

In his presidential election campaign, Donald Trump pledged to roll back ‘electric vehicle mandates’ and boost the oil and gas industry. He framed his policies as about restoring consumer choice. They were also supported by the oil and gas industry and climate change sceptics, as well as parts of the US auto industry who have said tailpipe standards are too strict and costly to meet.

The EPA’s ‘endangerment finding’ in 2009 determined that CO2 and other greenhouse gas emissions are a form of air pollution that the agency can regulate under the Clean Air Act, because climate change harms human health.

The EPA’s latest proposal would revoke the endangerment finding, seen by many as a cornerstone of US federal rules designed to tackle multiple sources of greenhouse gases – such as motor vehicles.

Although CAFE standards remain in place, the US Department of Transport is reviewing them and Congress has already voted not to enforce big fines for vehicle manufacturer non-compliance. It has also voted to end the State of California's so-called 'EPA waiver' that meant it adopted tougher greenhouse gas policies than federal rules.

The Trump administration has also scrapped consumer EV tax credits.

“With this proposal, the Trump EPA is proposing to end sixteen years of uncertainty for automakers and American consumers,” said EPA Administrator Zeldin. “In our work so far, many stakeholders have told me that the Obama and Biden EPAs twisted the law, ignored precedent, and warped science to achieve their preferred ends and stick American families with hundreds of billions of dollars in hidden taxes every single year. We heard loud and clear the concern that EPA's GHG emissions standards themselves, not carbon dioxide which the Finding never assessed independently, was the real threat to Americans’ livelihoods. If finalized, rescinding the Endangerment Finding and resulting regulations would end $1 trillion or more in hidden taxes on American businesses and families.”

“Thanks to President Trump’s leadership, America is returning to free and open dialogue around climate and energy policy - driving the focus back to following the data,” said U.S. Secretary of Energy Chris Wright. “Today’s announcement is a monumental step toward returning to commonsense policies that expand access to affordable, reliable, secure energy and improve quality of life for all Americans.”

Administrator Zeldin also announced the agency would reconsider the Model Year 2027 and Later Light-Duty and Medium-Duty Vehicles regulation and Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles.    

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