The European Parliament has approved a draft law to reduce emissions of carbon dioxide from new cars by 20 per cent by 2025 and 40 per cent by 2030.

The proposal, a hard-won compromise between environmentalists and auto industry advocates, would reduce emissions from petrol and diesel cars and an increased focus on electric cars. MEPs set target of 30 per cent of new car and van sales to be electric by 2030.

One amendment passed by the parliament concerned a bonus system, whereby companies would be allowed a lower CO2 reduction target if they produced a certain proportion of electric cars.

However, if manufacturers fail to produce enough electric vehicles to meet the proposal’s benchmark, they would be obliged to reduce emissions beyond the 40 per cent target in order to compensate.

Carbon emissions from cars and vans have been a contentious subject of discussion in Europe since 2015, when Volkswagen was found to have rigged diesel engines to pass emissions tests. Many diesels were subsequently discovered to be more pollutant than had been believed. Some cities recommended banning older diesels altogether; while the Danish government recently proposed a full ban on new petrol and diesel cars by 2030.

Read more: Government Europa