The European Commission is to propose tighter CO2 emissions standards for light commercial vans as part of a wider legislative push to reduce emissions and cut fuel costs.

Draft regulations, seen by the Reuters news agency, show the commission has a non-binding 2020 goal to limit average CO2 emissions from new cars to 95g/km but plans to enforce a provisional goal to limit emissions from new vans to 147g/km by the same date.

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The new target will follow on from an existing goal to limit average emissions from new vans to 175g/km by 2017. By the end of 2014, the commission will assess the need for further targets in 2025 and 2030, according to the draft law.

Van makers that miss the 2020 target will face fines of EUR95 (US$120) per gram for every vehicle that exceeds the limit. The commission is expected to publish the proposals next month before they are finalised by EU member governments and the European Parliament.

Can makers fear that the targets could prove extremely challenging for an industry suffering from overcapacity and economic recession.

Road transport remains one of the few sectors with rapidly rising emissions, up by 26% between 1990 and 2008, according to commission figures.

An impact assessment on the proposed new law, also seen by Reuters, says a 25% reduction in car and van fuel consumption would save an estimated EUR25bn (US$31bn) a year.

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