Endangerment
February 19, 2026
Alex KiersteinRemoving the EPA’s ability to designate carbon dioxide and methane as threats to human health and the climate are part of a broader push for deregulation.
On Thursday, February 12, 2026, the current administration repealed the EPA’s finding that carbon dioxide and methane as threats to human health and the climate—known as the endangerment finding. Promulgated in 2009, it formalized the role of the EPA not just in regulating pollutants like NOx and CFCs, but also in regulating greenhouse gasses directly. And it’s the latest piece of climate regulation to be dismantled, after a severe reduction in CAFE vehicle fuel economy standards, the removal of federal tax credits for plug-in vehicles, and clean energy generation tax incentives.
The adminstration, and in particular EPA adminstrator Lee Zeldin, telegraphed the moves last year, and a draft proposal circulated in August. Environmental groups are gearing up to challenge the change, and scientists are pointing to established and unambiguous science on climate change.
None of this will shift the administration, bent on deregulation in general but also on policies that will improve “affordability” and “customer choice” in terms of vehicles. Some automakers had previously welcomed the CAFE rollbacks; the Senate is currently investigating whether Ford specifically lobbied the administration to ditch the endangerment finding.
Automakers are in a bit of a bind in general with the American trend towards deregulation. While it would help improve profitability, especially with regard to the largest and most profitable trucks and SUVs, it also creates even more divergence between the US and the rest of the world, which isn’t likely to follow suit. Anything that splits development and production costs further will cut into that savings. Expect, if the EPA endangerment rule repeal survives legal challenges, for some American automakers to pull back from smaller markets with stringent emissions rules.
In the short term, a repeal of the endangerment finding won’t have an immediate impact for consumers. Vehicle development takes years. And even relatively staid analysts like S&P Global foresee limited impact on affordability.
It’s not even clear what this will mean for cars in a technical sense. Currently, modern cars are engineered to meet emission standards while also meeting a host of other performance and quality targets. Would an automaker, even hypothetically, go to the trouble of developing an engine specifically for this one deregulated market? Even if this all becomes the law of the land, is there a business case for engineering a bespoke powertrain or even tune to take advantage of lax standards that may be in conflict with the standards imposed by say, California?
Whether the EPA’s latest move reflects reality—that CAFE standards were not achievable, that preserving ICE powertrain choice aligns with market desires, as the administration argues—is academic. We won’t get to see lower-emissions vehicles get a fair shake. Laissez-faire regulatory policies won’t align automaker production with consumer desire, it’ll serve to maximize automaker profitability.
The legal system will determine much of what comes next.
Recent Posts
All Posts
February 20, 2026
February 18, 2026
February 18, 2026
Leave a Reply