Governments around the world are bowing down to public pressure to reduce the levels of greenhouse emissions and one of the industries set to bear the biggest cost from impending changes to regulations is the automotive one. One of the most influential changes will be the stricter CAFE standards set to hit the U.S. over the coming decade (35mpg fleet average by 2020).

Most carmakers are understandably a little worried, but industry powerhouse Toyota is boasting that not only will it undercut the CAFE standards it will do it several years earlier than the 2020 proposed deadline, reports Automotive News. Speaking at the Detroit Auto Show, Toyota CEO Katsuaki Watanabe has revealed the carmakers plans to improve the efficiency of its fleet.

Topping the list are plans to deliver lithium-ion hybrid vehicles by 2010. Toyota also plans to launch more dedicated hybrid models, including under its Lexus brand. We’ll be seeing the first of these new hybrids at next year’s Detroit Auto Show, Watanabe revealed.

Other options include increase use of enviro-friendly materials and fuels such as cellulosic ethanol derived from wood waste and ultra-efficient diesel engines.