US Transportation Secretary Nominee Proposes Installing 500,000 Electric Vehicle Charging Stations... Launching the 'Green New Deal' in Earnest

Fuel Efficiency Standards Expected to Rise Again to Obama Administration Levels
Major Shift to Electric Vehicle Era in the US... Over 50 Models to Launch This Year

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Pete Buttigieg, the nominee for U.S. Secretary of Transportation, stated at his confirmation hearing that he will strongly push forward President Joe Biden’s ‘Green New Deal’ pledges, including the installation of new electric vehicle (EV) charging stations and revisions to fuel efficiency standards. President Biden also marked the official start of a ‘carbon-neutral economy’ by signing an executive order to rejoin the Paris Climate Agreement immediately after entering the White House. This marks a major shift from the energy policies of the previous Donald Trump administration and is expected to have a significant impact not only on the U.S. but also on the global automotive market.

According to foreign media including the Associated Press, on the 21st (local time), nominee Buttigieg appeared before the U.S. Senate Committee on Commerce, Science, and Transportation for his confirmation hearing and emphasized, "We will add more than 500,000 EV charging stations nationwide by 2030 and revise federal vehicle fuel efficiency standards." He added, "Implementing President Biden’s Green New Deal vision will create millions of jobs, revitalize communities, and play a central role in addressing climate issues." Buttigieg is expected to easily pass the confirmation vote next week, having received support from both Republican and Democratic parties. The Green New Deal policies he outlined at the hearing are expected to be fully implemented after his inauguration.

The federal vehicle fuel efficiency standards under the Obama administration required improving mileage by 5% annually from 23.2 km per liter of gasoline, but under the Trump administration, the regulation was significantly lowered to improving mileage by 1.5% annually from 17.2 km per liter. Buttigieg is expected to restore these standards to the levels set during the Obama administration. The expansion of EV charging stations is also interpreted as a policy to increase EV adoption rates and reduce carbon dioxide emissions.

Earlier, President Biden signed an executive order to rejoin the Paris Climate Agreement immediately after his inauguration ceremony and entering the White House office, reaffirming his major campaign pledge of a carbon-neutral economy. During the last presidential election, Biden promised to halt carbon-emitting power plants by 2035, promote the adoption of eco-friendly renewable energy, and achieve net-zero greenhouse gas emissions in the U.S. by 2050.

The dramatic changes in U.S. energy and environmental policies are expected to have a significant impact on the global economy. The international automotive market, where the biggest changes are anticipated, is already preparing for a transition to electric and other eco-friendly vehicles. According to CNBC, more than 50 models of electric and eco-friendly vehicles are already lined up for release in the U.S. market this year, and established commercial vehicle manufacturers such as Volkswagen and GM are also preparing to launch new models equipped with EV-dedicated platforms.