Friends Fiduciary joined with other investors with assets totaling over $720 billion in writing a letter to the Environmental Protection Agency in support of continued fuel economy targets and greenhouse gas emissions standards for new cars. Investors wrote in support of the EPA’s Proposed Determination for emissions and fuel economy for model years 2022-2025.
The standards “would save approximately 537 million metric tons of GHG emissions and reduce oil use by 1.2 billion barrels.” Signatories pointed out that the regulations stimulate the economy, as consumers spend savings on fuel in other areas. A study produced by Ceres and independent industry analysts found that fuel standards substantially profit suppliers, which are more significant to the national economy than automakers themselves. Additionally, suppliers and automakers both benefit from regulatory certainty.
More stringent fuel standards also help minimize the risk to automakers posed by climate change, ensuring automakers are prepared to be globally competitive in the transition to a low-carbon economy and driving innovation.
A separate letter in support of the 2022-2025 standards was sent by a coalition of businesses representing over $400 billion, called Business for Innovative Climate & Energy Policy, or BICEP. Companies represented included General Mills, Gap, Nike, and Starbucks.