EU unveils controversial plans to make cars greener

The remaining 10 grammes is to come from measures that do not have to be met directly by car manufacturers, but through other contributions such as more efficient air conditioning, the use of biofuels and changes to tires.

Currently, cars in the EU emit around 160 grams of CO2 per kilometre on average and account for around 12 percent of the EU's total CO2 emissions.

The newly adopted proposal is "the EU's first opportunity to demonstrate [its]commitment to implement concrete measures to reduce carbon emissions" and "to be credible" with regards to the commitments made at a summit on climate change in Bali last week, EU environment commissioner Stavros Dimas said when presenting the plan.

"Reducing emissions from cars is very important [as] they have a significant impact on climate change", he added.

According to the commissioner, the targets would be based on the mass of the passenger car meaning that "all manufacturers will be required to reduce their emissions, but manufacturers of larger cars would be asked to do proportionally more than small manufacturers".

Besides setting targets from 2012 onwards, the proposal also foresees penalties imposed by the EU if a carmaker fails to comply with those targets.

Under the plan, the penalties would start in 2012 at €20 per gramme of carbon dioxide over the target, and would increase gradually reaching €35 in 2013, €60 in 2014 and €95 in 2015.

Penalties are necessary because "without this the legislation would be just another voluntary agreement, which as you all know has not worked", Mr Dimas said referring to a voluntary target to cut average emissions for new cars to 140 grammes of CO2 per kilometre by 2008, which is not going to be met.

Criticism from all sides

However, the proposal which the commissioner presented as "environmentally good", beneficial for the consumer as well as boosting the industry's competitiveness, has drawn attacks from all sides.

"The Commission has let car makers drive away with a proposal that sets a weak, short-term standard, lacks any longer-term targets, and offers an open road to heavy, gas-guzzling vehicles", environmental organisation Greenpeace said in a statement.

According to Greenpeace, the proposal should set the more ambitious and long-term target of 80 grammes of CO2 per kilometre for the average of new cars by 2020, while taking the size of a car and not its weight as a basis for CO2 standards.

Germany, home to major car manufacturers such as BMW and Porsche, has already criticised the plans at the highest political level.

Chancellor Angela Merkel said the proposal "burdens Germany and German car-makers."

The European Automobile Manufacturers Association earlier this week criticised the introduction of fines for carmakers saying that "the idea as such is wrong, but if at all implemented, the fine should not exceed 20€/gramme".

Meanwhile Germany's BMW said the proposals were "naive" steps that would favour producers of smaller cars, while France's Peugeot dubbed the plans "anti-ecological, anti-social, anti-economical and anti-competitive in relation to non-European Union carmakers", according to the BBC.