The European Parliament has voted to adopt a 175g/km CO2 short-term and 147g/km CO2 long-term target for LCVs.

Under the new rules, van manufacturers will have to ensure that 70% of their new vans and other LCVs must meet the limit of 175g/km by 2014, with 75% compliant from 2015, 80% from 2016 and all models below that level by 2017.

A long-term target of 147g/km by 2020 has also been outlined and will be confirmed in a review in 2013.

Manufacturers that don't meet the short-term limit will be fined €95 for each gramme of carbon emissions a van exceeds the target from 2019.

However, there will be a system of "super credits" as an incentive for selling low-carbon LCVs of under 50g/km. Manufacturers of such models can count each qualifying LCV several times when calculating their fleet average CO2. They can be counted 3.5 times in 2014 and 2015, then 2.5 (2016), 1.5 (2017) and 1.0 in 2018.

Martin Callanan (ECR, UK), who steered the legislation through Parliament, commented: 'This legislation has been a difficult balancing act between setting ambitious but attainable environmental targets for manufacturers. I am satisfied that this is a good deal for the environment, for van manufacturers, and for van users across the EU.'

The announcement has been greeted by the Society of Motor Manufacturers and Traders (SMMT). Chief executive Paul Everitt said: 'Industry is pleased that the European Parliament has come to a decision on CO2 emission targets for LCVs as vehicle manufacturers are committed to lowering emissions as part of ongoing introductions of low, lower and ultra-low carbon vehicles.

'The UK is well placed to capitalise on low carbon technologies and manufacturers now need government to demonstrate its support for sustained investment in skills, R&D and capital equipment.'

The European Parliament approved the legislation with 534 votes in favour, 117 against and 15 abstentions.

If endorsed by the Council of Ministers, the new rules will complement existing CO2 limits for passenger cars.