IDRV - Selling Credits Is A Lucrative Revenue Stream For EV Makers

• Over the last decade, Tesla and other automotive manufacturers have successfully harnessed the opportunity to convert overperformance of existing CO2 emissions and fuel consumption regulatory standards to valuable revenue streams.
• In late December 2021, the US Environmental Protection Agency finalized tightening of the US greenhouse gas standards for light-duty vehicles, representing a cumulative 28% increase in stringency over the 2023-26 model year period.
• Mainland China emerges as the market with the most vibrant opportunity for regulatory credit trading in the next decade owing to the structure of its regulatory programs.

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