EVs Help Vehicle Emissions Drop to Historic Low in the U.S.

EVs and PHEVs brought huge climate wins for the transportation sector in 2023. Emissions are down, fuel economy levels are up.

Fully electric and hybrid vehicles are helping America reduce greenhouse gas emissions to record levels, the Environmental Protection Agency said in a newly published report this week. EVs are not only helping bring down harmful carbon dioxide emissions but are also increasing fleetwide fuel economy rates to record highs.

Transportation accounts for the highest share of planet-warming greenhouse gas emissions in the U.S. Fifty-seven percent of the transportation sector’s emissions come from light-duty vehicles, as per the EPA. Tailpipe emissions have been labeled as public health hazards and are directly linked to respiratory illnesses and lung diseases.

Now a combination of pro-EV regulatory framework, compliance by automakers and increasing adoption from consumers is helping turn the tide. The real-world new-vehicle CO2 emissions dropped to a record low of 319 grams per mile for MY2023 vehicles, an 18-point reduction compared to the previous model year vehicles.

Fleetwide fuel-economy levels for new vehicles reached a record 27.1 miles per gallon, a 1.1 mpg increase compared to the year before. The EPA said increased production of fully electric and plug-in hybrid models significantly influenced these trends. Automakers sold a record 1.1 million EVs and PHEVs in 2023. That number is expected to grow when 2024 sales numbers are out early next year.

Without EVs and hybrids, emissions would have risen to 357 grams per mile and fuel efficiency would have stagnated at 24.9 mpg.

So, who are the good and the bad actors? Tesla has been the manufacturer with the highest fuel economy since 2016 when it began mass production of the Model 3 sedan. That’s unsurprising because Tesla only makes fully electric models. However, according to EPA data, Stellantis has manufactured the dirtiest cars since 2015. Both automakers will remain in the same spots in 2024, as per a preliminary estimate.

Every major automaker witnessed a drop in their real-world CO2 emissions among new vehicles sold, except Honda and Toyota. The most significant year-over-year emissions drops came from Mercedes-Benz (-68 g/mi), BMW (-39 g/mi), Kia (-17 g/mile) and Nissan (-17 g/mile). And the largest fuel economy improvements were also from these brands.

The EPA added that SUVs are now cleaner than sedans, as they’re increasingly electrified and automakers sell more of them. The category now accounts for the lowest average new-vehicle CO2 emissions as electric SUVs accounted for 36% of all MY2023 SUVs sold. Their fuel economy also has been increasing the most over the years.

“This report provides a critical data-driven affirmation that strong, technology-neutral standards can underpin environmental progress while saving drivers money at the pump,” EPA Administrator Michael S Regan said in a statement. “Manufacturers continue to innovate and are bringing technologies to market which will directly improve air quality, better protecting people’s health and saving lives.”