The new proposal set out by the EPA shows an ambitious pathway for the US to reduce its GHG emissions. The proposed CO2 emission standards across the different vehicle classes will require OEMs to significantly increase zero emission vehicle production in the coming years, a move that will require substantial investment from many parts of the EV, battery and charging supply chain.

The proposed CO2 emission target for light duty vehicles sees a 56% reduction from the 2026 target. According to EPA estimates, up to 67% of new LDV vehicles sold in 2032 may have to be electric in order for carmakers to be compliant.

To view the full briefing, written by our analyst team, click below.