EU proposes emissions limits

The European Commission has put forward proposals to force EU car manufacturers to limit emissions from their vehicles to 130 grams per kilometre by 2012.

Those who fail to implement the changes will face fines, starting at 20 euros (£14.35) per gram of carbon dioxide over the target, growing to 95 euros by 2015.

A further ten gram cut, to 120 grams per kilometre, is sought through improvements to air-conditioning systems, tyre pressure monitoring and gear shift indicators - while the use of biofuels would also be stepped up.

However, manufacturers will still be able to producer cars which pollute more than the limit.

The EU proposals state the average across a company's whole produce range must be below the limit.

The move to propose legislation follows a failure from European, Japanese and Korean manufacturers to meet voluntary targets to reduce average emissions for new cars sold in Europe by 25 per cent from 1995 levels.

EU environment commissioner, Stavros Dimas, said: "Passenger cars account for about 12 per cent of overall EU carbon dioxide emissions and emissions from transport are continually increasing.

"The aim of the legislation is to reduce CO2 emissions from cars in order to help fight climate change."

However, car manufacturers have reacted angrily to the proposals.

"The proposal is very disappointing and both its content and the way it was adopted are in stark contrast with the better regulation principles of the European Commission," said Sergio Marchionne, president of the European Automobile Manufacturers Association (ACEA).

"All our efforts are focused on further reductions of carbon from cars. The upcoming regulatory framework should support us in a constructive and sustainable way. We urge the EU governments and European Parliament, who will have the final say, to take up this challenge in the months to come."