The current industry average remains at 161g/km, however, the new restrictions are being pushed towards binding legislation. This is because until now, European carmakers have failed to come even close to voluntary standards that were set at 140g/km by 2008. The compromise comes after the vocal outcry from the CEOs of most of Europe’s carmakers and even German Chancellor Angela Merkel, who deemed the changes were a threat to the automotive industry, which employs roughly 12 million people across Europe.
"It's balancing the three things: climate change, innovation and a competitive industry," the source said, adding "I would expect to see the target of 120 grams per km is agreed, of which the car manufacturers will contribute 130." The EU is set to impose the new standards on Wednesday, bringing an end to the two-week long dispute between the heads of the automotive sector and the 27-member college of Commissioners.