Government agencies, including the Environmental Protection Agency (EPA) in the United States, are increasingly beginning to introduce limits on nitrogen oxide and carbon dioxide emissions. Automakers are expected to be penalized if they fail to meet these limits. In spite of the new regulations, standards, and goals in effect, opponents are right to criticize that the sources of electricity employed to power electric cars, as well as how materials (including cobalt, nickel, and lithium) used in car batteries are generally not taken into consideration when it comes to calculating a vehicle’s carbon footprint. Automakers around the world will have to focus on clean fuel sources and sustainable supply chains. In 2015, Volkswagen experienced how disrespecting emerging environmental regulations may hurt brand image.

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