The European Commission is set to offer a compromise target for carmakers to lower carbon dioxide emissions from new vehicles, according to a European Union source.
The commission will target an overall cut in car emissions to 120 grams per kilomere by 2012 from current levels of roughly 161 grams per kilometre.
The target will be achieved through biofuel use and other technology in addition to improved manufacturing standards, the source said.
The commission will propose the strategy be implemented through binding legislation.
Political momentum for binding targets has grown as it becomes clear European carmakers will miss a voluntary goal to reduce the average carbon dioxide output from new cars to 140 grams per kilometres by 2008.
Environment Commissioner Stavros Dimas had favoured binding legislation putting the full burden on manufacturers to produce new vehicles that emitted on average 120 grams of carbon dioxide per kilometre in 2012.
But he met resistance from the car industry - Germany in particular.
Commission members are expected to endorse the compromise strategy at their regular meeting tomorrow.