Plans to introduce a new fleet average standard for fuel efficiency will be postponed for a year to give those in the industry a little longer to adapt.
Originally, the 95g/km CO2 fuel economy standard had been earmarked for a 2020 roll-out across the whole of Europe. This will now happen in 2021.
German manufacturers are most opposed to the bill, perhaps due to the country's global reputation for creating powerful, large engine vehicles that can also have lower-than-average efficiency ratings, transportenvironment.org reports.
Following lobbies from German manufacturers, who feel that over zealous efficiency measures could prevent them from making the kinds of cars that many people want to buy, EU lawmakers agreed to implement the proposed 'supercredits' scheme.
This approach will enable manufacturers to build up credits by putting fuel-efficient vehicles into wide production. Then, these credits will afford manufacturers the chance to make much more powerful vehicles with larger, less economic engines.
An initial agreement on this was reached at the end of 2013, but this has since been formally recognised by the EU parliament.
Clean vehicles manager at T&E, Greg Archer, has mixed feelings about the agreement - telling thegreencarwebsite.co.uk: "This one year delay to the car emissions law was an unnecessary weakening to please luxury German carmakers.
"Nevertheless, the final agreement is still a good deal for the environment, EU economy and drivers - reducing fuel use and CO2 emissions by 27 per cent over 6 years."