Obama sets US' first ever national standards for exhaust emissions
Wed 20 May 2009
View all news
The US President Barack Obama has announced new standards for car and light truck emissions which mean that manufacturers will have to improve the fuel efficiency of the vehicles they make by around a third by 2016. The US is the biggest car market in the world with more than 250 million cars and light trucks on the road.
The US federal government plan aims to replace overlapping rules on emissions and efficiency set by agencies at federal level and by individual states.
Under the proposals, there will have to be 5% annual increased in new car fuel efficiency from 2012 to 2016, leading to a total 34% fall in CO2 emissions by 2016 compared with current levels.
The US government says the plan will cut oil consumption by an estimated 1.8bn barrels over the life of the programme and will be the equivalent in emissions cuts of taking 177m cars off the road.
While the price of cars may rise by $1,300, the administration says that the extra cost will be offset in just three years. Over the life of a vehicle, the typical driver will save about $2,800 through better fuel efficiency the President said.
Announcing the plan at the White House, Mr Obama said the status quo was "no longer acceptable" and led to dependence on oil exporting countries and climate change.
The plan was reported to have received wide support from both the car industry and from environmental groups. A senior car industry spokesman, reported on the White House website said: "What's significant about the announcement is it launches a new beginning, an era of cooperation. The President has succeeded in bringing three regulatory bodies, 15 states, a dozen automakers and many environmental groups to the table… We're all agreeing to work together on a National Program."
GM Chief Executive Fritz Henderson said in a statement: "GM and the auto industry benefit by having more consistency and certainty to guide our product plans."
Even with the imposition of the proposals, US fuel efficiency standards will still lag behind Europe, but the proposed rate of progress will exceed the rate that has been agreed in Europe.
A related measure has been introduced to Congress. Dubbed “Cash for Clunkers”, the measure would give vouchers worth up to $4,000 to consumers who turn in a car that gets 18mpg or worse in exchange for buying a new or used car that exceeds the current federal fuel efficiency standards by 25 per cent.
Related Links
< Back to news list