Vermont's tough CO2 laws upheld

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A US federal judge has upheld Vermont's state law that calls for a 30% cut in greenhouse gas emissions from cars, dealing a blow to America's car makers.

Judge William Sessions rejected the car manufacturers' claims that federal laws took precedence over state rules.

Vermont is one of nine US states that have already adopted tougher than federal rules on CO2 gases to help fight global warming.

The case could influence similar lawsuits in other US states.

'Unconvinced'

Car makers General Motors and DaimlerChrysler - which has since sold its Chrysler unit - sued Vermont in 2005, arguing that US states cannot regulate CO2 levels released by vehicles.

But Judge Sessions on Wednesday dismissed their claims, saying that "the plaintiffs failed to prove the regulations were pre-empted".

He also rejected arguments that the industry would be unable to meet the tougher standards.

"History suggests that the ingenuity of the industry, once put in gear, responds admirably to most technological challenges," Judge Sessions said in the ruling.

"The court remains unconvinced automakers cannot meet the challenges of Vermont and California's GHG [greenhouse gas] regulations."

Vermont has followed California's lead in adopting stricter laws on carbon dioxide emissions from vehicles.

The laws require the 30% cut in CO2 emissions from cars and light lorries by 2016.

All new models must adhere to the new standard, starting from 2009.