The latest deal was backed by the Environment Committee on 17th December 2013 and follows delays brought about by the German government to support its premium carmakers BMW and Daimler.

The revised vote means that only 95% of new cars will meet the 95g/km target in 2020, effectively weakening the target by around 3g/km, according to Brussels-based environmental NGO Transport & Environment. All new European cars will have to meet the target one year later.

Greg Archer, clean vehicles manager at Transport & Environment, said: ‘This one-year delay to the car emissions law was an unnecessary weakening to please luxury German carmakers. Nevertheless, the final agreement is still a good deal for the environment, EU economy and drivers – reducing fuel use and CO2 emissions by 27% over six years.’

In addition, the revised agreement offers more flexibility to carmakers in terms of when they can use additional allowances for selling electric cars, known as “supercredits”.

The regulation is estimated to save 422 millions tonnes of CO2 by making new cars more efficient – a fifth of all CO2 emissions in Europe comes from cars, while emissions from road transport increased by 26% between 1990 and 2008.

The new target will reduce the fuel bills of a typical driver by over €500 per year according to estimates – the 95g/km target is equivalent to fuel use of 4l/100km. However, T&E says that improved car fuel efficiency will be much less than officially stated unless a new testing system is introduced as part of the regulation.

‘Fuel economy standards for vehicles are Europe’s single most effective policy to drive down CO2 emissions, but are being undermined by an obsolete test. The regulation confirmed today calls for a 2025 target and new test to be quickly introduced. The Commission must ensure that fierce opposition from carmakers does not delay their introduction,’ Archer concluded.