Overall EU car emissions fell 4 percent in 2010 image

Carbon emissions from cars in the European Union have dropped overall, by nearly 4 percent in 2010 from 2009, according to data from the European Environment Agency (EEA).

However, some carmakers could face fines totalling €10 billion ($13 billion) if they fail to meet targets in five years. Official figures released on Tuesday show that many manufacturers were already on track to meet 2012 green targets, more precisely 32 of them.

But other carmakers, including Daimler AG, Honda Motor Company, Nissan International SA, General Motors Company, Mazda Motor Corporation and Dacia, would all have to cut average emissions over the next five years by more than 14 grams of CO2 per kilometer.

The EEA warned that without further progress, penalties could total €10 billion, which then would be transferred by manufacturers to the price of their new cars. In 2010, the average level of emissions of a new car registered in the EU was 140.3 grams of CO2 per kilometer.

The EU wants to reduce CO2 emissions gradually, with car manufacturers required to achieve an emissions target of 130 grams per kilometer by 2015 on average for new cars registered in the union. The target will be imposed gradually from next year.