US finalizes new fuel economy standards for vehicles

Apr 1, 2010, 19:26 GMT

Washington - US regulators on Thursday finalized new fuel efficiency rules for cars and light trucks, raising fuel economy standards and for the first time regulating greenhouse-gas emissions blamed for global warming.

President Barack Obama's administration will by 2016 require carmakers to reach an average of 15.1 kilometres per litre across their fleet of models, up from the current 11.6 kilometres per litre. The rule will also require an average carbon dioxide emission level of 155 grams per kilometre.

The new standards will be introduced gradually, starting in 2012. Lisa Jackson, head of the Environmental Protection Agency (EPA), called it a 'historic' standard that would be a 'win-win programme for our economy and our environment.'

Obama first directed his administration to raise fuel economy standards last spring as part of a strategy to tackle pollution that causes climate change.

The new rules were welcomed by environmentalists and carmakers, who had agreed to back the higher fuel economy requirements after talks with the Obama administration last year.

General Motors in a statement said: 'While these requirements are very challenging, we feel confident that GM will be able to achieve the mandated fleet fuel economy targets.'

The cost to carmakers was estimated at 52 billion dollars and will add about 950 dollars to the cost of each vehicle, the EPA estimated.

Jackson argued consumers will make up the difference in lower petrol costs. The administration also argues the new standards will ultimately save 1.8 billion barrels of oil.

Obama has struggled to get a more comprehensive clean energy policy through Congress amid stiff opposition from conservatives and some fellow Democrats over its potential costs to the economy.