US emissions reform and setback for e-mobility: CO₂ regulation in the US drops, EU remains unimpressed

According to Motortrend, the U.S. Environmental Protection Agency (EPA) published a proposal on August 1, 2025, to repeal CO₂ emissions standards for vehicles. This would rescind the "Endangerment Finding" of 2009, which served as the basis for regulating greenhouse gases in the transportation sector.

Reducing manufacturing costs

In addition, the National Highway Traffic Safety Administration (NHTSA) announced a new regulation in June 2025 that reorients the Corporate Average Fuel Economy (CAFE) program. According to the NHTSA, this measure aims to relax fuel economy standards and reduce vehicle manufacturing costs.

Less pressure on manufacturers

These changes could lead to a renaissance of internal combustion engines, as manufacturers face less pressure to switch to electric powertrains and modernize their model ranges. For example, Dodge currently plans to continue production of the popular 5.7-liter HEMI V8 engine.

No changes in Europe

In Europe, however, CO₂ emission standards remain strict. The EU continues to pursue ambitious climate targets, which is likely to make the sale of vehicles with high CO₂ emissions increasingly unattractive and so encourage European consumers to increasingly switch to electric vehicles.

Differing paths

Overall, it appears that developments in the US and Europe – with the new administration in the US – are taking different directions, which could have implications for the global automotive industry and, in particular, for electromobility.