Environmental Leader

European companies using cargo vans in their operations could face higher costs after the European Union sets caps on carbon emissions for vans sold in the EU after 2013.

Automakers not complying with the caps would face fines, reports Reuters.

Automakers could face fines of $175 per vehicle for not meeting the new targets, which will be unveiled in October and are expected to largely mirror emissions caps previously announced for the general auto industry. That proposal faced stiff industry resistence, and a compromise agreement eventually was reached.

Under the plan, commercial vehicles smaller than 2.6 tons would have emissions capped at 175 grams starting in July of 2013 and 135 grams by 2020.

However, it appears that automakers are looking to weaken both the short-term and long-term targets, Reuters reports.

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