European environment ministers have asked for an impact assessment of planned

new regulations to force carmakers to meet tougher limits on CO2 emissions.

ACEA, the European automakers association, welcomed the move. "It is essential

that the EU institutions design a cost-effective policy and grant sufficient lead-time to our industry ahead of new legislation", said Ivan Hodac, ACEA's secretary general, in a statement.

EU environment ministers confirmed their support for legislation to significantly reduce CO2 emissions from new cars sold in Europe at their meeting on June 28. The reduction is part of the EU's aim to reduce greenhouse gas emissions in Europe.

The legislation will target a reduction in CO2 emissions to 120 grams per kilometer driven by 2012 from about 160g/km now with 130g/km being reached by improvements in vehicle technology and 10 g/km by 'additional measures.'

It will replace a voluntary agreement between the EU and ACEA to cut CO2 emissions from new cars to 140g/km by next year, a target that is unlikely to be reached.

Environment ministers failed at their meeting to agree how efforts to achieve the limit should be apportioned among manufacturers.

They asked European Commission officials to put forward proposals by the end of the year on how the proposed limit can be achieved. The ministers said the proposals should be "cost-effective" for manufacturers and "as neutral as possible from the point of view of competition."

ACEA members are worried that meeting tougher emissions limits will make cars more expensive to build because they need to develop expensive new technologies, which could force them to increase car prices and possibly cut jobs.

Hodac said: "The current proposals are not feasible and focus too much on vehicle technology. To make further progress, the automobile manufacturers support an integrated approach, involving the car and fuel industries, policy makers and car users."

ACEA members include Volkswagen, Fiat, BMW, DaimlerChrysler, Ford of Europe and General Motors Europe.

You may e-mail Paul McVeigh at pmcveigh@craincom.de