After months of uncertainty, the Energy Department is beginning to lend money from a $25 billion loan program to develop fuel-efficient cars. Ford Motor Company, Nissan Motor Company and Tesla Motors are slated to get the first round of loans.

Bhutan celebrated World Environment Day on June 5. As usual, the day was marked by lofty official speeches. This year, however, a highlight of the celebration was the launch of an electric car in Thimphu by the department of energy.

Toyota Motor Corp's Prius hybrid was Japan's best-selling car in May, a dealers' group said on Thursday, attesting to robust demand for low-emission cars helped by government incentives amid flagging auto sales.

A newly formed private company called Coda Automotive on Wednesday announced it will sell a fully electric car with a range of about 100 miles in the California market by autumn 2010 for around $45,000.

The company expects to sell about 3,000 "Coda Sedan" vehicles in the fourth quarter of 2010 that will be manufactured in China by state-owned Harbin Hafei Automotive.

No single technology will triumph in the pursuit of a "greener" auto industry. Instead, the future will include a mix of cars powered by electricity, hydrogen fuel cells and biofuels, according to the world's biggest car makers.

Top executives from companies likely to win from climate change policies demanded on Tuesday that governments turn away from fossil fuels when they sign a new climate pact, expected in December.

European Commission President Jose Manuel Barroso said on Monday he was confident the world would sign a global deal to combat climate change in Copenhagen in December.

Barroso urged European industry to gear up for a green technology race instead of shoring up outdated, high-carbon business models.

New vehicle emission standards will likely be a boon for everything from aluminium to new plastics, but the producers of lithium -- a mineral used in batteries that power new generation vehicles -- could be the big winners.

President Barack Obama's tough fuel economy program for vehicles could put another damper on the struggling ethanol business, because the alternative fuel packs a lower energy content than gasoline.

The White House will unveil an auto fuel efficiency proposal on Tuesday to resolve a dispute between California and the US government over emissions and accelerate the timeframe for sharply improving mileage performance, industry and other sources said.

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