The Trump administration is quickly implementing a number of executive orders that set the stage for policy direction across a range of critical issues. Recognizing consumer preferences, President Trump has vowed to ease regulations on fossil-fuel vehicles and roll back existing electric vehicle (EV) mandates and incentives. Accordingly, the Environmental Protection Agency (EPA) and Department of Energy have a unique and long-overdue opportunity to adopt a well-balanced, technology-neutral approach to reducing greenhouse gas (GHG) emissions and air pollution.
Intuitively, the rollback of EV mandates might seem to defeat GHG reduction goals, but with EV transition progressing much more slowly than anticipated, other options must be considered to provide a pathway to achieving clean air targets, meeting net-zero climate objectives, and recognizing the need to address public health concerns. Hopefully, we are on a path to recognize realistic options and accomplish all of the goals. One of the most viable options is hybrid technology which, when paired with low-carbon liquid fuels, offers a more immediate and accelerated path to carbon reduction from transportation sources—representing almost a third of all GHG emissions.
Importantly, automakers and dealers, including the National Automobile Dealers Association and the Alliance for Automotive Innovation, have cautioned against an overemphasis on EVs, highlighting potential risks to consumer choice, industry compliance, and feasibility. The Trump administration is listening. Mandates requiring a rapid EV transition present real challenges for the U.S. auto industry. Markets historically work better than mandates, as they encourage competition and innovation, allowing the best solutions to emerge organically based on consumer needs and technological feasibility.
Testimonies previously submitted to the EPA emphasize that prioritizing EVs without considering transitional challenges, including resource constraints and supply chain limitations, has actually been undermining the broader objective of reducing emissions and air pollution. A 2023 Transportation Energy Institute study by Stillwater Associates advocates for a portfolio approach, leveraging the existing fleet of nearly 300 million internal combustion vehicles (ICEVs) to achieve significant near-term GHG reductions alongside ongoing EV adoption. Toyota’s 1:6:90 formula highlights the resource efficiency of hybrid vehicles compared to EVs. According to this formula, the raw materials required to produce one long-range EV battery can instead be used to manufacture six plug-in hybrid vehicles or 90 standard hybrid vehicles. Building 90 hybrid vehicles with the same currently scare resources, results in 37 times greater carbon emissions reduction over their combined lifetimes compared to a single EV.
A comprehensive policy should go beyond EV tailpipe emissions to include low-carbon fuel and lifecycle-based vehicle standards, ensuring cost-effective GHG reductions while maintaining technological neutrality. Oak Ridge data projects 20% of today’s ICEVs will remain in use for 20 years, and McKinsey reports 46% of EV owners may return to ICEVs. These findings highlight the need for realistic, inclusive emissions policies—something EPA regulations have long overlooked.
Balancing market-driven innovation with diverse technologies and cleaner fuels enables access to affordable, reliable energy while protecting public health and lives and livelihoods. A hybrid approach accelerates emissions reductions cost-effectively, supports consumer choice, and keeps the U.S. auto industry competitive. Integrating low-carbon fuels with hybrid technology also reduces air pollution and the consequences of respiratory diseases, aligning with advocacy efforts of major health organizations.
Michael J. Roman is Senior Fellow, American Council for Capital Formation in Washington, D.C.
