The United States is well on the way to tighten its emission regulations, and as it is doing so, Toyota and ExxonMobil are partnering on a new fuel solution that will have potential to reduce emissions from combustion engines by up to 75%. 

Toyota is reportedly developing its own synthetic fuel brands using feedstock and ethanol. The fuel is still in the testing phase and will need to be supported through government policies.  

Toyota says that its research proves that the fuel could be used in existing and older vehicles powered by internal combustion engines.  

It also highlights that the high carbon costs of producing electric vehicles, and the uncertainty of where the electricity that powers them is coming from, means that EVs are not strictly zero emissions vehicles. It argues that its synthetic fuels should also be considered to meaningfully reduce carbon emissions. 

The Environmental Protection Agency has introduced its proposal for emission reductions and hopes it make two-thirds of all new cars sold electric by 2032.  

There have been many concerns about the environmental impact of e-fuels, ethanol in particular. Many argue that it has a higher carbon footprint than fossil fuels due to the cost of farming . 

However, Exxon and Toyota maintain that if lifetime emissions are taken into account, synthetic fuels could do much to lower transportation emissions. It also argues that weaning existing internal combustion vehicles off fossil fuels will be an important step in decarbonizing the sector.