New US emissions standards run counter to industry trends

The Trump Administration's decision to dial back environmental targets for the automotive industry is proving divisive. The new regulation calls for a tightening of Corporate Average Fuel Economy (CAFE) and CO2 standards by 1.5% every year through MY2026, and reflects a joint effort by the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) to set a unified national programme. However, it is a far cry from the 5% annual improvement set out in the previously agreed plan from 2012 under the Obama Administration.