BRUSSELS (Reuters) - The European Commission is set to propose tighter carbon emissions standards for new cars, according to a draft proposal, in a move that is likely to divide the auto industry.
The proposal, expected to be made public next month, would make binding a 2020 goal to lower carbon dioxide (CO2) emissions to an average of 95 grams per kilometer (g/km).
So far it is only a provisional, non-binding goal and compares with an existing binding target of 130 g/km.
Some industry representatives have said tougher binding standards would be extremely challenging.
Others have said they are achievable and would help to make Europe's struggling car industry more competitive as international rivals catch up with environmental standards.
"This regulation sets a target of 95 g CO2/km as average emission for the new car fleet," the draft seen by Reuters said.
The draft also proposes setting long-term CO2 standards for new passenger cars for 2025 and 2030 by December 31 of 2014 at the latest, if these targets are deemed appropriate.
As part of its efforts to tackle greenhouse gas emissions, the European Union in 2009 adopted rules that require carmakers to cut average car emissions to 130 grams of CO2 per km by 2015.
Carmakers are on course to meet that.
Road transport is one of the few sectors with rapidly rising emissions. Between 1990 and 2008, emissions from the sector increased by 26 percent, according to Commission figures.
An impact assessment on the proposed new law, also seen by Reuters, says it has the potential to cut car and van fuel consumption to the value of an estimated 25 billion euros ($31.2 billion) per year.
The Commission proposal, once made public, will have to go through a long EU legislative process before taking effect. ($1 = 0.8001 euros)
(Reporting by Barbara Lewis; Editing by Anthony Barker)
