The European Parliament has voted through the world’s toughest carbon dioxide standards for new cars, setting a limit of 95g per kilometre as an average across all new cars sold in the EU, compared with an existing limit of 130g/km.

The new limit will come into effect in 2020 although full implementation has been delayed for a year following lobbying by Germany on behalf of its premium car makers which will find the new rules extremely challenging.

EU climate commissioner Connie Hedegaard that the industry needed planning certainty and the commission would be working over the coming months on “ideas for a post-2020 target”.