December 4, 2008

European Union nations have reached a compromise agreement on new rules to cut CO2 emissions from new cars starting in 2012, with penalties for automakers who fail to comply.

Under the agreement, automakers will have to reduce CO2 emissions from new cars to 130 grams per kilometer over the period 2012-2015.

Penalties will be imposed on a sliding scale for cars emitting higher levels of CO2.