In a major step against climate change, US President Joe Biden is proposing a return to aggressive Obama-era vehicle mileage standards over five years.

He’s then aiming for even tougher anti-pollution rules after that to forcefully reduce greenhouse gas emissions and nudge 40pc of US drivers into electric vehicles by decade’s end.

The proposed rules from the Environmental Protection Agency and Department of Transportation are expected to be released as early as next week, according to four industry and government officials who have been briefed on the plan. They spoke on the condition of anonymity because the standards haven’t been finalised. But administration officials have been discussing the numbers with the auto industry.

Making good on Mr Biden’s promise during the presidential campaign, the regulatory action would tighten tailpipe emissions standards rolled back under former president Donald Trump.

Acknowledging Mr Biden’s goal of cutting US greenhouse gas emissions by at least half by 2030, the rules would begin with the 2023 car model year and start by applying California’s 2019 framework agreement on emissions standards reached between Ford, Volkswagen, Honda, BMW and Volvo, according to three of the officials.

The California deal increases the mileage standard and cuts greenhouse gas emissions by 3.7pc per year.

Requirements ramp up in 2025 to Obama-era levels of a 5pc annual increase in the mileage standard and a similar cut in emissions. They then go higher than that for model year 2026, one of the people said, perhaps in the range of 6pc or 7pc.

Neither EPA nor the Transportation Department would comment on the proposal.

The new standards go partway in meeting the demand from environmental groups, several of which were pushing for a quick return to at least the Obama-era standards to counteract the Trump rollbacks. Car emissions are the single biggest US contributor to climate change.

“We’re at the climate cliff, and the stakes are too high to aim low,” the Centre for Biological Diversity will write in a full-page ad in The New York Times today, urging strong action.

The centre is pushing for a phase-out of gas-powered vehicles in favour of electrics by 2030, as well as a requirement for 7pc annual emissions reductions each year from 2027 until then.

In the proposed rule, the EPA is likely to make a nonbinding statement that the requirements will ramp up even faster starting in 2027, forcing the industry to sell more zero-emissions electric vehicles, the industry and government officials said.

For now, the agency was seeking to ask that 40pc of all new car sales be electric vehicles by 2030, according to one of the officials.

The Biden administration defers for now in setting post-2026 mileage requirements, setting the stage for bigger fights ahead over the level of government effort needed to combat climate change against the future of the auto industry, which currently draws most of its profits from gas-powered SUV sales.

Delaware Senator Tom Carper, who chairs the Senate Environment and Public Works Committee, has been urging tough rules that would ban sales of new gasoline-powered passenger vehicles by 2035. He’s argued that the industry is already moving in the direction of zero-emission electric vehicles.

Under Mr Obama, automakers were required to raise fuel economy 5pc per year from 2021 through 2026. But under Mr Trump, that was reduced to 1.5pc annually. In 2019, five automakers – Ford, BMW, Honda, Volkswagen and later Volvo – split with competitors and reached a deal with California to raise mileage by 3.7pc per year.

Mr Trump later repealed California’s legal authority to set its own standards, which the Biden administration is moving to restore.

The California deal with Ford and the other automakers has vehicles getting about 33mpg on average.