US finalizes lower fuel economy standards, cutting vehicle costs but raising emissions 5% through 2050
streetinsider.comThe US Transportation Department will finalize sharply lower vehicle fuel economy standards for model years through 2031, reversing the Biden administration's push to boost EV adoption. The new rules set a fleetwide average of 34.5 miles per gallon by 2031, down from 50.4 mpg under the previous framework. The department estimates this will cut average new vehicle costs by $930 but increase fuel consumption by about 100 billion gallons through 2050 and raise carbon dioxide emissions by roughly 5%. Automakers will find it easier to sell less efficient vehicles, but the tradeoff is higher long-term fuel spending and more greenhouse gas emissions. The move comes as US drivers face elevated fuel prices amid geopolitical tensions. Critics argue it slows the transition to clean transportation and cedes leadership in clean tech to China. The standards are set to be finalized Monday, marking a major shift in federal climate policy.
