US to weaken car emission norms due to high cost

The Trump administration is set to announce a rollback of fuel economy standards set in the Obama-era. According to a media report, the revised rules will be formally announced by April 1, 2018 and will include a rollback in the average fleet fuel economy rules as well.

Back in 2009, corporate average fuel economy (CAFE) rules were revised for 2012-2016 model cars to meet the average fleet fuel efficiency of 15.08 km/l. Of these, passenger cars were expected to meet the 16.58 km/l mark while light trucks had to achieve 12.75 km/l. These were a marked improvement from the 2009 limits of 10.62 km/l for all vehicles. It was expected that this would reduce fuel consumption by approximately 1.8 billion barrels and reduce greenhouse gas emissions by approximately 900 million tons. By 2014, most of these norms were met and by 2012-2015, the industry average was more than the required legal level.

In 2011, an agreement with 13 automakers for the period of 2017-2025 included a higher average fuel economy of 23.17 km/l for cars and light trucks. The automakers included Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota, and Volvo. Volkswagen refrained from signing this agreement. The above 23.17 km/l number was based upon the assumption that the ratio of cars to trucks would remain 67:33, however the current ratio stands closer to 50:50. This has caused an increased cost to the automakers towards the use of alternate technologies including hybrid and battery operated vehicles to try to keep up with the increased targets.

The Environment Protection Agency (EPA) has already concluded that these rules for lowering the green house emissions are aggressive and would be revised. It was also revealed that unrealistic CAFE norms would drive up the cost of new vehicles and people would find it difficult to upgrade, thereby using their old vehicles, whose emissions would be higher.

Source - [URL=""]Bloomberg[/URL]