The US Transportation Department will finalize weaker fuel economy standards through 2031, reversing the Biden administration's push for electric vehicles. The new rules set a fleetwide average of 34.5 mpg by 2031, down from 50.4 mpg under the previous target. Officials say this will cut new vehicle costs by about $930 each, but the department's own estimates show a 5% increase in CO2 emissions and 100 billion extra gallons of fuel consumed through 2050. Automakers will find it easier to sell less efficient vehicles, which could slow the transition to EVs and raise long-term fuel spending for drivers. The decision comes amid high fuel prices and marks a sharp policy shift on climate and emissions. For carbon markets and climate policy watchers, the change signals weaker near-term demand for clean transportation and a tougher road for meeting US emissions targets.
