It also proposed stricter environmental standards for diesel and gasoil sold in the 27-nation bloc. “This is one of the most important measures in the series of new initiatives the Commission needs to take to step up the fight against global climate change,” Environment Commissioner Stavros Dimas said in a statement.

“It is a concrete test of our political commitment to leadership on climate policy and our capacity to translate political priorities into concrete measures.”

The proposals come just weeks after the Commission challenged the world to reduce its emissions of greenhouse gases by 30% by 2020 compared to 1990 levels.

They also come as Europe grapples with how to reduce CO2 emissions from cars. A Commission spokesman said the cars proposal, which has drawn opposition from Germany and the auto industry, would come out next week.

Under the new fuel quality rules, sulphur content in diesel would be limited to 10 parts per million from 2009, while poly aromatic hydrocarbons — which the Commission says can cause cancer — would be cut by one-third.

The proposal also foresees a new blend of petrol with “higher permitted oxygenate content (including up to 10% ethanol)” to enable more use of biofuels. Oil companies expressed concern the EU market did not have enough biofuel supplies to meet the new targets and complained they were being unfairly targeted by the new proposals and requirements to cut CO2 under the bloc’s emissions trading scheme.

The new rules are part of the bloc’s efforts to meet commitments under the Kyoto Protocol to lower emissions of the gases scientists blame for warming the earth.

—Reuters