Climate change is about to play a big role in government purchases – with vast implications for the US economy

The U.S. government is the single largest buyer of services and goods, like vehicles. That has an impact on the economy. Saul Loeb/AFP via Getty Images

Each year, the federal government purchases about 50,000 new vehicles. Until recently, almost all of them ran on diesel or gasoline, contributing to U.S. demand for fossil fuels and encouraging automakers to continue focusing on fossil-fueled vehicles.

That’s starting to change, and a new directive that the Biden Administration quietly issued in September 2023 will accelerate the shift.