BRUSSELS (Reuters) -- The European Union's French presidency proposed on Tuesday watering down plans to curb greenhouse gas emissions from cars by phasing in limits up to 2015, with lower fines for narrowly missing the target.

The EU's executive Commission has proposed cutting CO2 from cars by 18 percent to 130 grams per kilometer by 2012, as part of an ambitious plan to lead the world in fighting climate change, with stiff fines for non-compliance.

A further 10 grams would have to be achieved through improved tires, gears and air-conditioning, the plan said.

However France, which holds the presidency until the end of this year, proposed that just 60 percent of each manufacturer's fleet should have to meet the standard in 2012, rising to full compliance in 2015.

Up to 7 grams of the cut could be achieved through new technologies other than engine improvements, such as solar panels on roofs, according to a document seen by Reuters.

The French document also suggested a longer-term target of cutting car emissions to 95-110 grams per kilometer by 2020.

Auto making nations led by Germany, which specializes in powerful, heavy luxury vehicles such as Mercedes and BMW, which emit the most greenhouse gases, have pressed for a softening of the Commission's plan.

The big carmakers have argued that a rush to legislate puts jobs and export earnings at risk.

But the environment committee of the European Parliament, which shares the duty of drafting legislation with EU member states, rejected a similar swathe of changes last week, saying they were too soft on the auto industry.

Member states and parliament have to agree on the same rules for the legislation to be adopted.

The French proposal foresees a complex, graduated system of fines that would soften the penalty on manufacturers that narrowly miss their targets.