Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

California to ban sale of new gasoline-powered passenger vehicles in 2035

Published 09/23/2020, 01:46 PM
Updated 09/23/2020, 01:50 PM
© Reuters. A traffic highway sign on a usually busy interstate 5 freeway informs drivers to wash their hands due to the global outbreak of the coronavirus disease (COVID-19), in La Jolla

By David Shepardson and Nichola Groom

WASHINGTON/LOS ANGELES (Reuters) - California will ban the sale of new gasoline powered passenger cars and trucks starting in 2035 in a dramatic move to shift to electric vehicles and reduce greenhouse gas emissions, Governor Gavin Newsom said on Wednesday.

"This is the most impactful step our state can take to fight climate change," Newsom said in a statement announcing his executive order. "For too many decades, we have allowed cars to pollute the air that our children and families breathe. You deserve to have a car that doesn’t give your kids asthma... Cars shouldn’t melt glaciers or raise sea levels threatening our cherished beaches and coastlines."

California is the largest U.S. auto market, accounting for about 11% of all U.S. vehicle sales, and many states choose to adopt its green vehicle mandates.

Newsom also wants the state legislature to stop issuing new permits by 2024 allowing use of hydraulic fracturing technology for oil and gas drilling. 

U.S. President Donald Trump has sought to bar California from requiring sale of electric vehicles, while his rival Joe Biden has pledged to spend billions to speed the adoption of electric vehicles.

California said it was joining 15 countries that have made similar pledges, including Britain.

Newsom said the California Air Resources Board (CARB) will develop regulations to mandate that 100% of in-state sales of new passenger cars and trucks are zero-emission by 2035, which would cut greenhouse gas emissions by 35%. The board also plans to mandate by 2045 that all operations of medium- and heavy-duty vehicles be zero emission where feasible.

Newsom's executive order will not prevent Californians from owning gasoline-powered cars or selling them on the used car market.  

In response to a record wildfire season in the state, Newsom earlier this month said California needed to "fast track" its efforts to reduce greenhouse gas emissions and combat climate change. "Across the entire spectrum, our goals are inadequate to the reality we are experiencing," he said on Sept. 11 while touring a burned area in the state.

California and nearly two dozen other U.S. states sued the Trump administration seeking to block the government from undoing California’s authority to set strict car pollution rules and rolling back nationwide emissions standard.

© Reuters. A traffic highway sign on a usually busy interstate 5 freeway informs drivers to wash their hands due to the global outbreak of the coronavirus disease (COVID-19), in La Jolla

The Trump administration has been waging a multi-pronged battle to counter California's efforts to fight climate change by reducing emissions of greenhouse gasses from vehicles.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.