Full Title: CFS and Transportation Markets Report
Author(s): 3Degrees
Publisher(s): 3Degrees
Publication Date: March 31, 2025
Full Text: Download Resource
Description (excerpt):
2025 has already ushered in a mixture of regulatory shifts, technological advancements, and both public and private sector leadership. The Environmental Protection Agency (EPA) is reconsidering previously adopted federal vehicle emission standards that would effectively require an increased share of electric vehicles (EVs) in the market. While proponents of the regulations view them as a necessary step toward meeting climate goals, critics argue that the required rapid transition may impose technological and economic challenges, particularly for heavy-duty transportation and long-haul trucking.
One of the most debated regulatory changes so far this year is EPA’s decision to revisit Greenhouse Gas (GHG) Phase 3 regulations for heavyduty vehicles, initially finalized in April 2024. The Phase 3 standards are designed to cut GHG emissions from heavy-duty trucks by 29% below 2021 levels by 2032, affecting a wide range of commercial vehicles, from refuse haulers to transit buses. However, industry feedback suggests that the stringent requirements may act as an effective mandate for zero-emission trucks, presenting infrastructure challenges, power grid constraints, and high adoption costs. In response, EPA has opened a review process to assess the feasibility of these standards and their longterm implications for the freight and logistics industries.