US targets 50 per cent EV sales by 2030

US president Joe Biden has announced a landmark CO2 emissions reduction plan that aims to ensure half of all new vehicles sold by 2030 in the world’s second-biggest auto market are electrified.

In a plan unveiled overnight with the backing of America’s biggest car-makers, Biden signed an executive order setting a voluntary target for electric cars, plug-in hybrids and hydrogen fuel-cell vehicles to make up 50 per cent of total annual new vehicle sales in the US by the end of this decade.

The measure has won the support of Ford, General Motors and Stellantis, all of which said the plan would need federal funding to work in the form of EV charging stations and consumer tax incentives.

However, the plan has drawn criticism from climate groups because it is voluntary and not enforceable.

“The future of the American auto industry is electric,” Biden said. “The question is whether we lead or fall behind in the race for the future. The rest of the world is moving ahead. We have to catch up.”

In a joint statement, General Motors, Ford and Stellantis said they aspired “to achieve sales of 40-50 per cent of annual US volumes of electric vehicles ... by 2030”.

Biden also urged that the vehicle parts required to making the sweeping change to an EV-filled landscape be produced in the US, with the promise of new jobs and billions in federal electric car investments.

Unions have supported the measures, claiming the non-binding nature of the agreement would preserve the wages and benefits of their workers.

But Dan Becker, director of the Safe Climate Transport Campaign, said the unenforceable nature of the plan was prone to being exploited.

“Voluntary pledges by auto companies make a New Year’s weight-loss resolution look like a legally binding contract,” he said.

Biden has called for $US174 billion ($A235.6bn) in government spending to boost EV sales, including $US100 billion ($A135.4bn) in consumer incentives. Separately, there is a $US7.5 billion ($A10.2bn) bipartisan infrastructure bill awaiting Senate passage.

Elsewhere, the Environmental Protection Agency (EPA) has proposed new rules that would require car-makers to achieve a fleet-wide fuel average of 52mpg (4.52L/100km) by 2026.

The current requirement for that model year is 43mpg (5.47L/100km) under targets set by the previous Trump administration.

Under the new rules, which must go through a regulatory process, car-makers will be allowed flexibility to use credits banked in past years.

Transportation is said to be the single biggest contributor to climate change in the US.

As is the case in Australia, the big unknown is how consumers will respond. Only 2.2 per cent of new vehicle sales in the US in June were fully electric, up from 1.4 per cent in 2020.

The new measures are close to matching the standards set by the Obama administration before being rolled back under Trump.

The plan comes as various other countries are set to enforce bans on the sale of new petrol and diesel vehicles as early as 2030.

The Australian federal government has steered clear of following the UK and other countries in setting targets to phase out combustion-engined vehicles.

However, the industry here has adopted a voluntary CO2 code to try and curb emissions.