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In 2008, the EU set legally-binding targets for new cars to emit 130 grammes of CO2 per km by 2015 and 95g in 2020.  In July 2012, the European Commission put forward a proposal on how the 2020 target should be met.

The Commission issued its draft proposal in July 2012. In April 2013, the Environment Committee of the European Parliament voted in favour of this proposal, confirming the 95 gram target for 2020 and setting a range of 68-78g CO2 /km for cars sold from 2025. In June 2013, The Irish Presidency of the Council, the Commission and European Parliament reached an agreement on the final text. Regrettably, the agreement was blocked at the last minute by Germany. After further negotiations a new deal was struck under the Lithuanian Presidency in December 2013, marginally amending the previous agreement by phasing in the regulation by 1-year. The European Council of Member States have now approved the revised deal unanimously and the European Parliament accepted the new agreement in February 2014.

Europe’s current fuel efficiency testing regime was developed more than 40 years ago and is now inadequate and outdated - which has lead to carmakers manipulating test results. The European Commission plans to have a new test cycle, the World Light Duty Test Procedure (WLTP), by 2017. While it is widely supported by MEPs, carmakers want to delay it until after 2021.

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