AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
Tesla sells carbon credits2/12/2024 The Chronology of CAFE ConsiderationsĬorporate Average Fuel Economy standards were introduced in 1975 as part of the Energy Policy and Conservation Act, with the purpose of reducing energy consumption by increasing the fuel economy of cars and light trucks. Beyond emissions reduction objectives, the standards are also intended to improve the nation’s energy security and enhance the welfare of consumers. The federal CAFE standards, combined with greenhouse gas (GHG) standards, are the primary mechanisms through which the US federal government regulates GHG emissions from the transportation sector. Credits are given to carmakers that build and sell environmentally friendly vehicles. In a push to reduce carbon emissions, governments around the world have introduced incentives for automakers to develop electric vehicles or very low-carbon emitting cars. By 2019, transportation accounted for about 29% of total US greenhouse gas emissions.ĬAFE standards regulate how far vehicles must travel on a gallon of fuel and are tied in with regulatory credits. Transportation is the largest single contributor of US greenhouse gas emissions, surpassing the electric power industry in 2016 for the first time. Tesla argues that the value of those credits are diminished due to changes in rules made by former President Donald Trump’s administration. At stake could be up to $1 billion annually, according to Reuters, both for failing to meet the rules and higher prices for credits used to meet the rules.Īll-electric vehicle manufacturer Tesla sells credits to other automakers to help them meet government vehicle emissions requirements. The Biden administration and a US appeals court are under pressure to move quickly to raise civil penalties for automakers failing to meet fuel economy requirements. Or follow us on Google News!ĬAFE penalties - those costs associated with automakers that fail to meet Corporate Average Fuel Economy standards - are under scrutiny right now. Sign up for daily news updates from CleanTechnica on email.
0 Comments
Read More
Leave a Reply. |