The three finalists for the World Green Car of the Year have been announced. The Honda FCX Clarity, the Mitsubishi iMiEV and the Toyota iQ were picked as the top contenders. The choices show that advancements have been made since last year when the winner was the BMW 118d, a 60 mpg diesel engine car.

The first contender, the Honda FCX Clarity, runs on a hydrogen fuel cell and can travel 270 miles per tank of hydrogen. The drawback to the car, of course, is that you'd have to live in one of the few areas that have a hydrogen filling station and stay close to it, but the upside is that the Clarity runs gasoline and emission-free.

About 200 people are going to be able to lease the Clarity in Southern California and Japan over the next three years. Considering it took a whole three years from concept to production, a whole three years more seems like quite a long time for consumers to wait to be able to pick one up at the corner dealership…if that ever happens. Ev's seem to be the way people are leaning, so fuel cell cars like the Clarity may remain uncommon.

The Mitsubishi iMiEV is a subcompact, all-electric vehicle that has been praised for its great handling and quick acceleration. The EV can reach a top speed of around 80 mph and has an 85-mile range on a full charge.

The tiny electric vehicle is based on the Kei car in Japan, it also comes with an "ECO" mode and regenerative braking mode that allows more conservative drivers to save energy and extend the vehicle range. Even in ECO mode, the car has ample power to keep up with the normal flow of traffic. Then, when you release the go pedal the car seamlessly begins regenerative braking and recharging the battery pack.

Mitsubishi stressed that these cars were production-ready models, though they may undergo a few final tweaks before they hit the market in Japan in 2009.

The Toyota iQ is a tiny four-seater with a 1.0 liter engine that has already won its share of accolades, including Japan's Car of the Year Award. The manual transmission model can get up to 67 mpg.

The iQ should appeal to young urban drivers. The price tag is rumored to be around $15,000 and the car is supposed to get 59 mpg, courtesy of its 1.4 liter D4-D diesel engine. By 2009, a smaller 1.33-liter engine will be available.

Besides the engine size, the iQ has a few additional fuel-saving features. Its Multidrive transmission continuously monitors and selects the best gear ratio and shifting speeds, which can maximize engine torque. It also features a display, called the “ECO” driving lamp, which alerts drivers as to when to they can save fuel and reduce carbon dioxide emissions. The Gear Shift indicator on the manual transmission models tells drivers when to shift up or down for optimal environmental performance, taking into account the driving conditions. This indicator alone could result in lowering fuel consumption by 0.5-3.0%.

The winner will be chosen on April 9, 2009.