EU agrees to cut car emissions

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BRUSSELS: European carmakers must cut global-warming gases from new
vehicles by 18% within the next six years, the EU agreed on Monday,
after a long
battle between environmentalists and an industry facing tough times.

"This deal represents a balance between the needs of the environment
and the car industry across Europe, which is suffering massively at
the moment," British Conservative lawmaker Martin Callanan told
Reuters late on Monday.

But the compromise was attacked by environmentalists, who said it was
tailored too neatly around big auto's demands and undermined EU
efforts to lead the world in fighting climate change.

Carbon dioxide emissions from new cars will be cut to 130 grams per km
(.6 mile), with auto makers' fleets phased into the new regime between
2012 and 2015.

The provisional deal in closed-door negotiations will need approval by
the European Parliament and all 27 European Union nations before
becoming law, but is not expected to change much.

The European Commission, which originates EU laws, had envisaged the
full emissions cuts by 2012, mindful of climate change and the
droughts, violent storms and rising sea levels it is expected to
bring.

But Germany fought hard for BMW and Mercedes, which will now be able
to produce their biggest, luxury gas-guzzlers until 2014, protecting
jobs and export earnings.

A moderate system of fines means manufacturers may prefer to miss
targets and pay up rather than throttle back on horsepower.

"The car industry has been driving negotiations all along and EU
politicians have been happy to sit in the passenger seat," Greenpeace
campaigner Franziska Achterberg said.

France and Germany had sketched out a rough deal in May, which Britain
signed up to in October after winning special treatment for luxury
brands Aston Martin and Jaguar.

Europe's other big car-making nation, Italy, joined the trio last
month after winning concessions for Fiat and its Maserati and Ferrari
sports cars.

Environmentalists had held the power during negotiations in the
European Parliament, throwing out an earlier compromise they saw as
too soft on big automakers.

But the economic crisis added weight to manufacturers' demands, and
lawmakers accepted the phased-in deal after winning assurances that
carmakers would have to meet more ambitious targets further down the
road.

"This is a huge disappointment," said British Liberal member Chris
Davies. "Tough carbon curbs would have led to lower driving costs, but
the consumer seems to have been largely forgotten."

Emissions will have to be cut around 40% to 95 grams per km by 2020, a
goal expected to boost sales of electric cars and hybrids. But Davies
said such an ambitious goal would be difficult, given the watered-down
mid-term cuts.

Monday's deal sees tough fines of 95 euros ($119.80) per gram per car
sold for automakers that miss their target by a long way, but those
that overshoot by less than three grams face modest sanctions of
between 5 and 25 euros.

"It's a proper compromise," said German Conservative member Angelika
Niebler. "That's acceptable because of the difficult situation of
industry now."