Deadlock over EU car emission rules finally broken

The deadlock over new European emissions standards for cars was finally broken last night, after EU member states agreed to a compromise package that will see the target of delivering an 18 per cent cut in emissions from new cars phased in between 2012 and 2015.

Following disagreements between the European Commission, which had wanted the targets to come into effect from 2012, and France, Germany, the UK and Italy, which had all argued for a phased approach, a deal was finally brokered last night.

Under the new proposals, average carbon emissions from new cars will still have to be cut 18 per cent to 130g per km, but the target will be phased in between 2012 and 2015.

The fines automakers would face for breaching the new standards have also been changed, with tough fines of €95 (£81) per gram per car sold imposed on manufacturers that miss targets by a considerable distance, but levies of between only €5 and €25 for those that miss the target by less than three grams.

In addition, a longer term target to cut emissions by about 40 per cent to 95g per km by 2020 was agreed in an attempt to appease environmentalists who have accused the car lobby of watering down efforts to tackle climate change.

The new package of measures will still have to secure backing from the European Parliament, but a spokeswoman for the parliament said there was confidence that the new proposals would be passed.

"If [European president] Mr Sarkozy wasn't confident that this would get support from the parliament, he wouldn't have put it forward at this stage," she said. "Nobody is really happy with the compromise, but there is a sense that a deal had to be reached."

The deal raises hopes that further agreements on the EU's wider climate change package can be reached before the end of the French presidency at the e nd of the year.

However, the spokeswoman warned that there were still plenty of issues that needed to be resolved by the European Council of member states before the scheduled vote on the final proposals on 17 December.

"This deal is the first positive sign that compromise can be reached," she said. "But there are still discussions going on about the structure of the emissions trading scheme and the sharing of the renewable energy targets and there are only a few weeks left."