European Union environment ministers agreed to German demands to scrap an agreement to cap average EU new-car emissions at 95 grams per kilometer in 2020 from about 130/g/km now after Berlin argued the target would cost jobs and damage its premium automakers.
German opposition parties accused Angela Merkel of pandering to the car lobby, after her political party received major donations from the family that controls BMW, just as Berlin was lobbying against tougher EU caps on carbon emissions.
The European Union asked the World Trade Organization (WTO) to rule on the legality of a recycling fee imposed by Russia on imported cars, stepping up a trade dispute between the two.
EU governments have delayed for a third time a target to cut average CO2 emissions from Europe’s new-car fleet to 95 grams per kilometer after lobbying from Germany on behalf of its automakers.
European Union state aid regulators approved 20.5 million euros ($27.73 million) in French support for Renault to develop diesel hybrid technology that will cut CO2 emissions from commercial vehicles.
