The European Commission on Wednesday proposed the world’s toughest controls on greenhouse gas emissions from cars. By 2012 the average new car in the European Union will have to emit no more than120g of carbon per kilometre, from 161g at present, if the measures are approved by EU governments.

The proposals were watered down after fierce lobbying from carmakers, who say the move will add thousands of euros to the price of a vehicle and cost jobs. The European Commission says the change is essential to hit the EU’s targets for reducing emissions under the Kyoto protocol to combat climate change.