What is the carbon footprint of driving an EV? Know before you switch
Key takeaways
- Your carbon footprint is the amount of emissions you release into the environment.
- Driving an electric vehicle reduces your carbon footprint by lowering lifetime emissions.
- EV-focused lenders, like Tenet, may offer you special rates and perks on loans for EVs.
In 2024, American EV sales surged to 8.1 percent of all new vehicles sold, based on data from Cox Automotive. If a climate-conscious vehicle is a top priority for you, consider how driving an electric vehicle (EV) impacts your carbon footprint. And if your goal is to lower your personal carbon footprint, getting behind the wheel of an electric vehicle can help.
What is the carbon footprint of electric cars?
Your carbon footprint is the amount of emissions that you are responsible for releasing into the environment. EVs have no tailpipe emissions, but charging them can still create carbon pollution.
That said, the carbon cost of manufacturing and charging an EV is often lower of a carbon footprint than a vehicle with an internal combustion engine (ICE). This is true even when taking carbon pollution from EV charging into account, according to the Environmental Protection Agency.
Think of it this way: A driver covering 15,000 miles behind the wheel of a 2025 Toyota Corolla will emit between 8,400 and 8,800 pounds of carbon per year. Compare that to someone driving a 2025 Hyundai Kona, an EV. The Kona with 19-inch wheels — the least efficient option — will release only 2,457 pounds of carbon in the same amount of time, according to NYSEG data.
For a more granular view of your EV’s environmental impact based on your zip code, use the U.S. Department of Energy’s greenhouse gas emissions calculator, which factors in your hometown electrical grid.
What is the carbon footprint of electric car batteries?
As critics note, manufacturing an EV’s battery creates more pollution than manufacturing a typical gasoline vehicle. A sedan powered by an electric battery will have a higher initial carbon footprint than a conventional gas-powered sedan.
However, according to research published in IOP Science, the two footprints match after an average of one and a half years. The EV does not continue to release carbon, whereas the gas-powered sedan does. From that point on, the EV will boast a lower lifetime carbon footprint than the ICE vehicle.
Many companies are also working towards a recycling system to reduce the carbon cost of producing batteries. This recycling push will lower emissions created during the production process and lower overall negative environmental impacts.
How to finance an eco-friendly vehicle
Electric vehicles usually have a higher upfront cost than gas-powered options. The average new EV cost $55,614 in January 2025, according to Kelley Blue Book. This is compared to $48,641 for a new gas-powered vehicle.
When shopping for an EV, consider checking out legacy brands that boast more accessible prices. The 2025 Nissan Leaf, for example, starts at just $28,140. Choosing a used over a new EV may also help you save.
The process of getting an EV auto loan is similar to any other auto loan.
- Check your credit standing. Lenders will look at your credit history. The better your credit score is, the lower your auto loan rates will be, which is especially important as EVs tend to cost more.
- Prequalify with at least three lenders. The lender market is expansive. To find the best loan for your needs, compare at least three quotes. Prequalifying lets you see rates and terms without damaging your score with a hard credit pull. Consider online lenders, banks and credit unions when shopping around. If you struggle to prequalify due to your credit score, try getting quotes from bad credit lenders.
- Apply for the loan. Before you start filling out the application, gather the needed documentation to save time.
- Sign off. Once you have found the best loan for your needs, you can begin making payments and navigating toward full EV ownership.
EV tax credits
Currently, you may qualify for up to $4,000 in federal tax credits for a used EV and up to $7,500 for a new EV. But with the possible elimination of EV tax credits, you may want to buy an EV sooner rather than later if you want to take advantage of these credits. That said, there will still be some state tax credits available to some buyers.
Bottom line
When buying your next vehicle, consider switching to an EV. You won’t just take small steps to improve the climate by lowering your carbon footprint. You’ll also benefit from the added perks of potentially lower insurance rates and advanced technology.
