The US Environmental Protection Agency (EPA) and the US Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) have jointly finalised standards for medium and heavy-duty vehicles for improving fuel efficiency and reducing carbon pollution.

The final phase two standards were initiated by President Obama for the Climate Action Plan, and respond to the President’s directive in 2014 to develop novel standards for the next decade.

EPA Administrator Gina McCarthy said: “The actions we take today on climate change will help lessen the impacts on future generations.

"Today’s ambitious but achievable announcement is a huge win for the American people, giving us cleaner air, more money saved at the pump, and real benefits for consumers across the supply chain."

“This next phase of standards for heavy and medium-duty vehicles will significantly reduce greenhouse gas emissions while driving innovation, and will ensure that the United States continues to lead the world in developing fuel-efficient technologies through the next decade and beyond.”

The final phase two programme supports cleaner, fuel-efficient trucks by promoting the wider application of available technologies and the development of innovative and advanced cost-effective technologies through model year 2027.

The final standards are expected to lower carbon emissions by approximately 1.1 billion metric tons, as well as fuel costs by approximately $170bn, and reduce oil consumption by up to two billion barrels over the lifetime of the vehicles sold under the program.

US Transportation Secretary Anthony Foxx said: “Today’s ambitious but achievable announcement is a huge win for the American people, giving us cleaner air, more money saved at the pump, and real benefits for consumers across the supply chain.

“Today’s action preserves flexibility for manufacturers to deliver on these objectives through a range of innovations and technology pathways.”

Overall, the programme will provide $230bn in net benefits to society, including benefits to our climate and the public health of Americans.