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EU, Car Industry Compromise on CO2 Emissions Cuts

The European Commission will  announce carbon dioxide emissions cuts for the car industry on Wednesday, Forbes reports.  EU environment commissioner Stavros Dimas is aiming at a C02 emissions target of 120 grams per kilometre by 2012 for cars sold in Europe.

Although the Commission will target an overall cut in car emissions to 120 g/km from current levels of roughly 161 g/km, the goal would be achieved through biofuel use and other technology in addition to improved standards from carmakers, Reuters reports.

Biofuel use would contribute five g/km while other factors such as improved tires and gearboxes would make up the other five g/km of the total goal.

The addition of biofuel and other technology to improved standards is the compromise strategy.

The German auto industry, and German chancellor Angela Merkel, had voiced opposition to the 120 g/km target for cars, saying production would shrink and jobs would move elsewhere.

Environmentalists said the 120 g/km should have been imposed on car makers directly, according to Reuters.

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