
Trump administration set to scrap landmark finding that regulates carbon emission
EPA administrator Lee Zeldin is expected to formally make the announcement at an event in Indiana alongside Governor Mike Braun on Tuesday afternoon.President Donald Trump has long argued that climate regulations stifle US economic growth, and on his first day back in office in January ordered that the EPA submit recommendations "on the legality and continuing applicability" of the Endangerment Finding.The Endangerment Finding stemmed from a 2007 Supreme Court case in which the court ruled that greenhouse gases are "air pollutants" - meaning that the EPA has the authority and responsibility to regulate them under the US Clean Air Act. In 2009, the EPA made an official decision, the Endangerment Finding, which found that greenhouse gas emissions from sources such as cars, power plants and factories cause climate change and could pose a public health risk. The decision forms the core of the federal government's authority to impose limits on carbon dioxide, methane and other greenhouse gases.Speaking in an episode of the conservative "Ruthless" podcast released on Tuesday, EPA administrator Zeldin said the move was "basically driving a dagger into the heart of the climate change religion".Zeldin said that emissions standards were a "distraction" and that the policy change was "an economic issue". "Repealing it will be the largest deregulatory action in the history of America," he said. In a previous statement on reconsidering the findings in March, Zeldin said that "the Trump Administration will not sacrifice national prosperity, energy security, and the freedom of our people for an agenda that throttles our industries, our mobility, and our consumer choice while benefiting adversaries overseas."The new draft rule from the EPA will now go undergo a public comment period before being subject to an interagency review. If it is successful, the rule will immediately revoke rules governing tailpipe emissions from vehicles. What is climate change? A really simple guideThe EPA's move is likely to face legal challenges, and some experts have questioned whether the administration's decision will make it through the courts at all. But Richard Revesz, the former administrator of the Office of Information and Regulatory Affairs in the Biden administration and a law professor at New York University, told the Washington Post that the announcement will still have an impact on US climate change policies until a final decision is made in the court system. "If the endangerment finding fell, it would call into question essentially all or almost all of EPA's regulation of greenhouse gases," he said. (With additional reporting from Mark Poynting)
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The Guardian
14 minutes ago
- The Guardian
City regulator unveils car loan compensation scheme worth up to £18bn
Drivers could be handed a share of between £9bn and £18bn in compensation next year, after the City regulator said it would consult on a redress scheme for consumers affected by the car finance scandal. The Financial Conduct Authority (FCA) said on Sunday that it plans to launch the redress scheme in 2026, with consumers 'starting to receive compensation next year'. 'At this stage, we think it is unlikely that the cost of any scheme, including administrative costs would be materially lower than £9bn and it could be materially higher,' the FCA said in a statement. The watchdog said that although some scenarios put the total cost as high as £18bn, it considered estimates in the mid point of this range to be 'more plausible'. In most cases individuals would receive less than £950 in compensation, it added. The regulator will start consulting on the compensation scheme by October, and plans to include motorists who were harmed by discretionary commission arrangements . These discretionary commissions, which were banned in 2021, inflated the cost of car financing by controversially allowing car dealers to earn higher commissions if they put customers on loans which earned higher interest rates for the lender. The watchdog will also consult on broader motor financing issues where motorists may have been harmed by egregious or unfair commission arrangements. It comes after a supreme court ruling on Friday largely sided with finance companies on Friday, but upheld a single case in which judges said the relationship between the lender and borrower had been 'unfair.' The supreme court case was brought by two specialist lenders, Close Brothers and South Africa's FirstRand, in an attempt to challenge the three consumers who collectively won the court of appeal case in October. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Justices were asked to review the court of appeal ruling, which suggested nearly all commission arrangements – unless plainly disclosed and issued under full consent of the consumer – were unlawful. If upheld, it would also have meant millions of people who bought a car with finance could be owed compensation at an estimated cost of up to £44bn to lenders including Santander UK, Close Brothers, Barclays and Lloyds. The sum would have almost rivalled the payment protection insurance saga, which cost banks about £50bn.


Telegraph
14 minutes ago
- Telegraph
Millions of drivers could share up to £18bn from car finance scandal
Millions of drivers could be in line to share up to £18bn in compensation after the City regulator said it would launch a consultation on the motor finance scandal. The Financial Conduct Authority (FCA) said drivers that could be paid as early as next year, with lenders on the hook for any redress scheme. It comes after a Supreme Court decision on Friday on cases in which the FCA had intervened. Many companies that provided loans for people to buy cars failed to disclose details about the commission they had paid to dealers up until a crackdown in 2021. While the Supreme Court largely overturned a ruling that these commissions were illegal, it said that in some circumstances lenders had acted unfairly. The FCA said most motorists were unlikely to receive more than £950, but that the overall cost of the compensation scheme for lenders and other finance providers could be between £9bn and £18bn. This is much lower than the £44bn some had feared if the court had ruled against them. However, it is above estimates after last Friday's ruling, and better than many motorists might have hoped for, with some experts having warned that they could expect very little compensation after the ruling. A total 31.7m motor finance agreements were issued between 2007 and 2021, with so-called 'discretionary commission arrangements' used in almost half of them. Nikhil Rathi, chief executive of the FCA, said: 'It is clear that some firms have broken the law and our rules. It's fair for their customers to be compensated. 'We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal. 'Our aim is a compensation scheme that's fair and easy to participate in, so there's no need to use a claims management company or law firm. If you do, it will cost you a significant chunk of any money you get. 'It will take time to establish a scheme but we hope to start getting people any money they are owed next year.' The FCA's announcement is likely to affect banks' share prices when markets open on Monday morning. The regulator had been rushing to put out a statement before trading began. The authority said consumers who had already complained to their lender did not have to do anything, while those who had not yet complained should do so now. It warned motorists against using a law firm or claims management company, which could take 30pc of any payout.


The Independent
43 minutes ago
- The Independent
Motor finance customers could receive payout as FCA will consult on scheme
Motor finance customers could receive a payout after the Financial Conduct Authority (FCA) announced it will consult on an industry-wide compensation scheme. Many motor finance firms were not complying with rules or the law by not providing customers with relevant information about commission paid by lenders to the car dealers who sold the loans, the FCA said. It comes after Friday's ruling by the Supreme Court on cases in which the FCA had intervened. While some motor finance customers will not get compensation because in many cases commission payments were legal, the court ruled that in certain circumstances the failure to properly disclose commission arrangements could be unfair and therefore unlawful, the FCA added. The UK's highest court ruled that car dealers did not have a relationship with their customers that would require them to act 'altruistically' in the customers' interest. Nikhil Rathi, chief executive of the FCA, said: 'It is clear that some firms have broken the law and our rules. It's fair for their customers to be compensated. 'We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal. 'Our aim is a compensation scheme that's fair and easy to participate in, so there's no need to use a claims management company or law firm. If you do, it will cost you a significant chunk of any money you get. 'It will take time to establish a scheme but we hope to start getting people any money they are owed next year.' The FCA currently estimates that most individuals will probably receive less than £950 in compensation. The final total cost of any compensation scheme is currently estimated to be between £9 billion and £18 billion, the FCA added. The consultation will launch by early October. If the compensation scheme goes ahead, the first payments should be made in 2026.