The European Parliament has approved a report calling on Member States to increase research and development (R&D) funding for the car industry so as to meet mandatory CO2 targets.

MEPS voted in favour of the report drafted by German Liberal MEP Jorgo Chatzimarkakis on the CARS 21 (Competitive Automotive Regulation System for the 21st Century) initiative, and agreed that car manufacturers should be given more time to meet the legally binding CO2 cuts.

They recommended that an average target for car makers should be 125g/km of CO2 emissions by 2015, whilst the European Commission had proposed a figure of 120g/km by 2012.

The MEPs also asked that cars should be permitted to emit more CO2 if the emissions result from mandatory safety measures, as some such measures increase the weight of passenger cars and thus lead to higher emissions. .

For Mr Chatzimarkakis, the adopted report was a step forward and a realistic option for the automobile industry.

'I am very pleased that the CARS 21 report has been approved. We want to take a realistic approach to what's going on. We want to give the automobile industry targets which they can realistically achieve,' he said on 15 January.

The report also suggested that one of the first knowledge and innovation communities (KICs) of the new European Institute of Innovation and Technology (EIT) should address CO2 reduction through vehicle technology.

'There should be a clear link between the rise in public R&D funding in the automotive sector and the binding character of CO2 targets,' the report stated.

Other topics addressed by the report include completing the internal market for cars, internationalising the regulatory environment, and the effective protection of intellectual property rights.

The European car industry produces 19 million vehicles a year and provides 2.3 million direct jobs and 10 million jobs indirectly.