Obama issues historic fuel efficiency standards
- 03 September 2012
NEW YORK: The Obama administration has issued historic new fuel efficiency standards which will vastly increase cars' efficiency, slash greenhouse gas (GHG) emissions and save consumers $1.7 trillion in fuel costs.
The higher corporate average fuel economy (CAFE) standards were issued by the Transportation Department. They require automakers to increase average efficiency of new cars and trucks to 54.5 miles per gallon by 2025.
In a statement, President Obama said: "These fuel standards represent the single most important step we've ever taken to reduce our dependence on foreign oil. This historic agreement builds on the progress we’ve already made to save families money at the pump and cut our oil consumption. By the middle of the next decade our cars will get nearly 55 miles per gallon, almost double what they get today. It’ll strengthen our nation's energy security, it's good for middle class families and it will help create an economy built to last.”
The Obama administration has estimated that the new standards will half GHG emissions by 2025 and save Americans $1.7 trillion in fuel costs.
Thirteen leading car companies including General Motors and Ford endorse the standards.
Amy Davidsen, Executive Director US, The Climate Group says of the new rules: "CAFE standards are important, not only in reductions of GHG emissions but as a way to encourage innovation and solutions. The standards will create incentives for auto manufacturers to make lower carbon vehicles such as EVs and hybrids - and to improve the engines of their core products to create better all round vehicles. With business and government supporting each other like this, we're accelerating towards a Clean Revolution in the US automotive industry."