The plan, which seeks to cut emissions from oil’s “life cycle” from the ground to a car’s exhaust by 10 percent from 2011-2020, drew criticism from a European refining industry body, which said some of the targets were unachievable.

Confirming a Reuters report, the European Union executive said on Wednesday the move would reduce emissions by 500 million tons of carbon dioxide (CO2) by 2020.

It also proposed stricter environmental standards for diesel and gasoil, or heating oil, sold in the 27-nation bloc with an eye to boosting the use of biofuels and reducing air pollution.

“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 percent by 2020 compared to 1990 levels.

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

The new fuel quality rules drew criticism from the European Petroleum Industry Association (Europia), which represents refiners such as Total, ExxonMobil, BP and Shell.

“It’s unachievable,” Europia Secretary General Peter Tjan told Reuters, adding the European biofuels market was not sufficient to meet the demand that such a rule would require. “These sort of targets can only be achieved with massive imports,” he said, adding that the import process alone would release greenhouse gases.

He said the move would also make fuel more expensive for the consumer and criticized the Commission for giving mixed signals about the targets it is seeking.

Environmentalists said focusing on fuel was not enough.

“By placing a disproportionate emphasis on fuel quality, the Commission is diverting attention from the real problem — the cars that use the fuel,” said Claude Turmes, a member of the Greens party in the European Parliament, in a statement. Under the new rules, sulphur content in diesel would be limited to 10 parts per million from 2009, to reduce emissions of dust particles and fight air pollution. 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 percent ethanol)” to enable more use of biofuels.

The new rules update several existing directives and 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.

They must be approved by EU governments and the European Parliament, a process which usually takes about two years.

Finish refiner Neste Oil said the Commission’s proposals appeared to be on the right track.

“The starting point for our business operations is without doubt aligned towards such goals (to reduce greenhouse gases),” Chief Financial Officer Petri Pentti told Reuters.

Austria’s OMV said it was already delivering on some of the objectives.

“In general, OMV is already very advanced when it comes to these issues,” spokesman Thomas Huemer said.

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