Vans' emission cut to help small businesses

Berlin initially resisted the measures, forcing a slight weakening of the strategy to make it easier for its big automakers Mercedes and Volkswagen.

Environment ministers meeting in Brussels endorsed a deal to cut carbon dioxide emissions from vans by around 14 per cent to an average of 175 grams per kilometre by 2017, an EU diplomatic source said.

That target was barely contested by auto-making nations, given rapid recent gains in efficiency by van makers – 15 per cent by Renault's Master van and 13 per cent by Mercedes' new Sprinter van.

The European Commission, which drafts EU laws, had proposed a much tougher target for 2020 of 135 grams per kilometre, but that proved more contentious.

Ministers agreed to soften that goal to 147 grammes, although some countries said they were disappointed at having to concede to Germany on a measure that would help small businesses cut their fuel bills throughout the EU.

"The EU's competitiveness will not be strengthened if we weaken environmental policy," said Swedish ambassador Jan Olsson. "Consumers and medium-sized enterprises would benefit from vehicles that need less fuel."

Germany's environment minister said he thought a good compromise had been reached for all sides.

"It achieves substantial CO2 reductions, to my knowledge 27 per cent," Norbert Roettgen told EU ministers. "It is feasible, it is a technological challenge, but it keeps us in a leadership position."

EU climate commissioner Connie Hedegaard welcomed the deal.

"It is an important step forward in curbing transport emissions," she told ministers.

"Although less ambitious than our proposal, it will stimulate innovation... it will also generate fuel savings for consumers, mainly small and medium-sized enterprises."