Car makers will be forced to reduce their emissions for new vehicles after the federal government struck a deal with the Greens to pass its climate laws for the industry.

The bill to establish the New Vehicle Efficiency Standard passed the Senate on Thursday evening without amendment and will now become law.

The Greens also agreed to pass reforms to taxes on offshore gas known as the Petroleum Rent Resource Tax, in exchange for the government agreeing to scrap an amendment that could fast-track gas project approvals.

Those changes also passed the Senate on Thursday with an amendment proposed by the government.

The fuel efficiency laws will set an average emissions limit on the vehicles car makers sell each year, with penalties if their cars on average exceed carbon emissions limits.

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.

The Greens were withholding their support for the fuel efficiency laws, even though they were largely in agreement with the legislation, saying they did not want to back the bill while a separate amendment fast-tracking gas project approvals threatened to undermine any progress achieved by reducing car emissions.