Heinrich Leads Bicameral Call For President Biden To Elevate U.S. Climate Leadership At COP27 By Signing Global Memorandum On Zero-Emission Medium- And Heavy-Duty Vehicles

WASHINGTON – In a continued effort to decarbonize the road transport sector and transition the new commercial vehicle transportation sector to zero-emission by 2040, U.S. Senator Martin Heinrich (D-N.M.), Co-Chair of the Electrification Caucus, is leading a bicameral group of Democrats in a letter to President Joe Biden, urging him to strengthen America’s global climate policy at the upcoming 2022 United Nations Framework Convention on Climate Change Conference of Parties (COP27) by adding the U.S. as a signatory to the Global Memorandum of Understanding (Global MOU) on Zero-Emission Medium- and Heavy-Duty Vehicles (MHDV).

Medium- and Heavy-Duty Vehicles represent just 10% of vehicles on the road but contribute to 28% of total on-road greenhouse gas emissions. Studies show that a complete transition to 100% zero-emission commercial vehicles by 2050 could reduce domestic MHDV greenhouse gas emissions by up to 73%, Nitrogen Oxides (NOx) emissions by up to 93%, and Particulate Matter (PM2.5) emissions by up to 73% below 2020 levels. Analysis further shows that these avoided greenhouse gas emissions could add up to 718 million metric tons by 2040 in the U.S., and 1,030 million metric tons by 2050.

The Global MOU, co-led by CALSTART's Global Drive to Zero program and the Government of the Netherlands, is a non-binding instrument that aligns signatories around a joint ambition for Zero-Emission Medium- and Heavy-Duty Vehicles. The MOU sets a target for 30% of new MHDVs to be zero-emission by 2030 and 100% by 2040 -- matching the global targets set on Transport Day at COP26.

In the letter, the lawmakers write: “Strengthening our leadership on zero-emission Medium and Heavy-Duty Vehicles will build on the historic investments made in the [Infrastructure Investment and Jobs Act and the Inflation Reduction Act] to deliver lower costs for American consumers, greater domestic manufacturing growth, and urgently needed climate pollution reductions.”

The Inflation Reduction Act championed by Congressional Democrats includes new commercial electric vehicles tax credits, with up to $7,500 for light- and medium-duty vehicles and up to $40,000 for heavy-duty vehicles.

The Global MOU has been signed by 16 countries and endorsed by over 60 state and local governments, zero-emission vehicle manufacturers, financial institutions, and other interested partners.

The letter led by Senator Heinrich is also signed by U.S. Senators Dianne Feinstein (D-Calif.), Alex Padilla (D-Calif.), Ed Markey (D-Mass.), Cory Booker (D-N.J.), Elizabeth Warren (D-Mass.), Sheldon Whitehouse (D-R.I.), Chris Coons (D-Del.), Tom Carper (D-Del.), Jeff Merkley (D-Ore.), Ben Cardin (D-Md.), and Bob Menendez (D-N.J.) and U.S. Representatives Paul Tonko (D-N.Y.), Sean Casten (D-Ill.), Doris Matsui (D-Calif.), and Raúl Grijalva (D-Ariz.).

Read the full text of the letter below or by clicking here. 

Dear President Biden,

We are writing to express our commitment to decarbonizing the road transport sector and transitioning the new commercial vehicle transportation sector to zero-emission by 2040. We urge you to continue to show global climate policy leadership and add the United States as a signatory to the Global Memorandum of Understanding (Global MOU) on Zero-Emission Medium- and Heavy-Duty Vehicles (ZE-MHDVs) at COP27. The Global MOU will help continue domestic economic growth in the manufacturing sector and deliver climate benefits that complement the historic investments made in the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA).

The Global MOU, co-led by CALSTART's Global Drive to Zero program and the Government of the Netherlands, is a non-binding instrument that aligns signatories around a joint ambition for ZE-MHDVs. The MOU sets a target for 30% of new MHDVs to be zero-emission by 2030 and 100% by 2040 -- matching the global targets set on Transport Day at COP26. The Global MOU has been signed by 16 countries and endorsed by over 60 state and local governments, zero-emission vehicle manufacturers, financial institutions, and other interested partners.

The transportation sector continues to be the largest source of greenhouse gas emissions in the United States, but investments made possible by the IIJA and IRA put the aspirations established by the MOU within reach. MHDVs represent just 10% of vehicles on the road but contribute to 28% of total on-road GHG emissions. According to an analysis by the ERM International Group on the impact of the IRA, commercial zero-emission MHDVs should achieve cost parity with comparable diesel or gas vehicles 5 - 12 years earlier than initially forecasted, for many as soon as 2023.

The benefits of transitioning to a zero-emission transportation sector on air quality are clear. Studies show that a complete transition to 100% zero-emission commercial vehicles by 2050 could reduce domestic MHDV greenhouse gas emissions by up to 73%, NOx emissions by up to 93%, and PM2.5 emissions by up to 73% below 2020 levels. Transitioning to zero-emission commercial vehicles enhances our national security by reducing our reliance on foreign oil and shielding consumers from disruptive volatility in fuel costs.

We believe United States participation in the Global MOU will send clear market signals to industry and allow U.S. policymakers greater access to an international knowledge-sharing network designed to support the implementation of best practices, policies, incentives, and investments necessary to make the transition to 100% zero-emission MHDV sales. It would also build on our existing domestic efforts to reduce transportation emissions and reaffirm our robust international response to the climate crisis.

The Global MOU does not require U.S. federal agencies to adopt new emission standards, targets, or requirements. It would instead help the United States send a strong message to the international community that we remain committed to driving emission reductions needed to achieve the Paris Agreement goal of net-zero carbon emissions by 2050, and affirm our commitment to the zero-emission technology that will define the future of the road transportation and goods movement sectors.

Strengthening our leadership on zero-emission Medium and Heavy-Duty Vehicles will build on the historic investments made in the IIJA and IRA to deliver lower costs for American consumers, greater domestic manufacturing growth, and urgently needed climate pollution reductions. We thank you for your leadership on tackling the climate crisis and rebuilding our economy, and urge you to continue to show global climate policy leadership by signing the Global MOU at COP27.

Sincerely,