Car makers will be forced to reduce their emissions for new vehicles as the federal government strikes a deal with the Greens to pass its climate laws for the industry.
The Greens supported the New Vehicle Efficiency Standard when it was put to a vote in the House of Representatives on Thursday morning, and are due to speak on "agreement with government on passage of legislation".
That emissions ceiling would be lowered each year, requiring car makers to progressively sell more fuel efficient and lower emission-vehicles to avoid a penalty.
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