EU car emissions eased in France-Germany deal

France and Germany have backed a further easing of EU emission rules for cars in a provisional agreement expected to shape the bloc's auto policy.

Diplomatic sources said the deal was struck Thursday but still needed final approval from Berlin. A draft document showed that Paris and Berlin also agreed to include Britain, and Norway under certain conditions, in rules defining which vehicles count as made in Europe.

The European Commission had proposed replacing the EU's 2035 ban on sales of new petrol and diesel vehicles with a requirement for manufacturers to cut new vehicle exhaust emissions by 90 percent. The remaining 10 percent would have had to be offset through credits, including from the use of low-carbon steel.

The Franco-German deal removes that offset requirement for residual emissions. It also opens the way for cars using renewable fuels to count as zero-emission and extends proposed super credits for small affordable electric cars to all vehicles, regardless of size or length.

France and Germany had disagreed over the direction of EU auto policy. Germany sought less stringent carbon targets and a broader definition of made in Europe, while France wanted to preserve climate ambitions and keep the public procurement scheme focused on EU countries.

The office of British Prime Minister Andy Burnham said the move, if confirmed, would be good news for the British automotive industry and the jobs and investment it supports.