EU postpones CO2 limits for new cars

(BRUSSELS) - The European Commission decided Monday to postpone a decision on whether to propose tough new emissions limits on new car models amid a split in the European Union's executive arm, officials said.

After the automotive industry failed to meet voluntary targets, the European Commission was to unveil plans on Wednesday to cap average carbon dioxide emissions from new passenger cars at 120 grammes per kilometer from 2012.

New passenger cars currently emit 160 grams of CO2 per kilometer travelled on average.

While Environment Commissioner Stavros Dimas wants the target to be set in binding new rules while Industry Commissioner Guenter Verheugen wants an "integrated approach" where the responsibility for reducing emissions is shared.

He wants tyre and fuel companies to also play a part in reaching the 120 grammes per kilometer target.

"The decision is postponed a week to have time to finalise our proposals," said Verheugen's spokesman, Ton Van Lierop.

The dividing issue is whether to make the rules binding our not, an official said on condition of anonymity.

Road transport creates more than 20 percent of all CO2 emissions in the EU, with half of that coming from passenger cars.

European, Japanese and Korean automakers have failed to meet a voluntary target to cut average emissions for new cars sold in Europe to 25 percent of 1995 levels.

The commission says that they have only reached 12.4 percent, which the EU executive describes as "not satisfactory".

The industry says that if the targets have not been met it is not their fault, blaming instead "strong customer demand for larger and safer vehicles and disappointing consumer acceptance of extremely fuel-efficient cars".