By David Shepardson
WASHINGTON (Reuters) – Tesla (NASDAQ ) generated nearly 34 million metric tons of greenhouse gas credits in the 2023 model year through the sale of electric vehicles, as the auto industry racked up significant credit shortfalls in the face of stricter emissions standards.
In a report first seen by Reuters, the Environmental Protection Agency said on Monday that the fuel economy of new vehicles increased by 1.1 miles (1.8 km) per gallon in 2023, reaching a record of 27, 1mpg (43.6kpg). The EPA said fleetwide fuel economy is preliminarily projected to increase to 28 mpg (45.1 kpg) in the 2024 model year.
The industry as a whole generated nearly 11 million metric tons, or megagrams, of greenhouse gas emissions credit shortfalls, led by General Motors (NYSE:), which posted a shortfall of 17.8 million metric tons.
GM purchased about 44 million credits in 2023, according to the EPA report, while Tesla sold about 34 million, the largest of all transactions.
Excluding Tesla, automakers generated a shortfall of 43.5 million credits in 2023. By contrast, in 2022, the industry earned a total of 3 million credits, led by Tesla's 19.1 million credits .
The EPA said the industry still has a total surplus of 123 million metric tons of credits to meet future requirements.
GM also had to forfeit another 49 million metric tons of credits as part of a July settlement of an EPA investigation that found excess emissions from about 5.9 million GM vehicles.
Reuters reported last week that President-elect Donald Trump's incoming administration plans to focus on federal regulations that aim to make cars more fuel efficient and incentivize a shift toward electric vehicles, citing sources.
In March, the EPA finalized new rules requiring automakers to reduce emissions by 49% by 2032 from 2026 levels, compared to 56% under last year's proposal, after dramatically tightening standards. requirements from 2024 to 2026.
Stellantis (NYSE:) had the lowest fuel economy of the major automakers, followed by GM and Ford (NYSE:), while Tesla is the most efficient, followed by Kia and Hyundai (OTC:).
Last year, Reuters reported that Stellantis and GM had paid a total of $363 million in civil penalties for failing to meet U.S. fuel economy requirements.
Vehicle horsepower, weight and size hit new records in 2023. Sedans and pickup trucks sold fell to just 25% of vehicles sold in 2023, while SUVs rose to 58%.
The EPA said electric and plug-in electric production increased from 6.7% in 2022 to 11.5% in 2023 and projected it to reach 14.8% in 2024.
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