Revocation of U.S. Environmental Regulations

U.S. President Donald Trump has rescinded a key environmental guideline, impacting the control of greenhouse gas emissions in the transportation sector. This is part of a broader effort to relax regulations established during the Obama administration.

Background and Impact

• The 'endangerment finding,' pivotal in setting emission standards, was annulled.
• Originated from the 2007 Supreme Court case, Massachusetts vs EPA, classifying greenhouse gases as "air pollutants."
• In 2009, the EPA identified six greenhouse gases, including CO2 and methane, as harmful to health and welfare, based on IPCC assessments.
• This led to the first federal greenhouse gas standards for vehicles in 2010, extending to 2025, influencing the automotive industry significantly.

Industry Response and Global Impact

• Automakers enhanced fuel efficiency, invested in hybrid and electric technologies.
• Regulatory credit markets supported firms like Tesla, promoting global electric vehicle adoption, even affecting markets like India.
• Regulations indirectly shifted consumer preference from small cars to mid-sized SUVs with improved emissions profiles.

Trump's Vision and Industry Realities

• Trump aims to revive the 'gas guzzler' era, hoping to boost manufacturing jobs and explore Venezuelan oil.
• However, modern production lines focus on electrification, hybridization, and emissions control, dominated by China.
• Automakers are unlikely to revert to older practices due to international emission standards and investments in clean vehicles.

Potential Consequences for India

• Trump's actions might encourage Indian automakers to weaken fuel efficiency standards.
• India's automotive sector, though unlinked to climate goals, should see regulations as a guiding principle.