Europe set itself new fuel-efficiency targets for vans on Monday, aiming to cut fuel bills for small businesses and curb emissions of gases blamed for climate change.

The move plugs a gap that was left when Europe agreed some of the world's most ambitious efficiency targets for cars in 2008, forcing Asian manufacturers to follow suit in what many see as a global technological revolution.

Berlin initially resisted the measures for vans, forcing a weakening of the strategy to make it easier for its big automakers Mercededs and Volkswagen.

Environment ministers meeting in Brussels endorsed a deal to cut carbon dioxide emissions from vans by around 14 per cent to an average of 175 grams per kilometre by 2017. That target was barely contested by auto-making nations, given rapid recent gains in efficiency by van makers - 15 per cent by Renault's Master van and 13 per cent by Mercedes' new Sprinter van.

The European Commission, which drafts EU laws, had proposed a much tougher target for 2020 of 135 grams per kilometre, but that proved more contentious. Ministers agreed on Monday to soften that goal to 147 grams, although some countries said they were disappointed at having to concede to Germany on a measure that would help small businesses cut their fuel bills throughout the EU.

'The EU's competitiveness will not be strengthened if we weaken environmental policy,' said Swedish ambassador Jan Olsson.

'Consumers and medium sized enterprises would benefit from vehicles that need less fuel.'

His comments echo suspicion among many Brussels politicians that auto-making nations France, Germany and Italy have been too successful in lobbying to weaken the EU fuel standards, most notably for cars in 2008.

Many car makers, especially Japanese marques, now look set to achieve their 2015 targets several years early.

'The automotive industry, which has benefited from billions of euros of taxpayers money in subsidies, low interest loans and research grants has once again bullied politicians into getting an easy ride,' said campaigner Kerstin Meyer at green transport group T&E.

Germany's environment minister said he thought a good compromise had been reached for all sides.

'It achieves substantial CO2 reductions, to my knowledge 27 per cent,' Norbert Roettgen told EU ministers. 'It is feasible, it is a technological challenge, but it keeps us in a leadership position.'

EU climate commissioner Connie Hedegaard welcomed the deal. 'It is an important step forward in curbing transport emissions,' she told ministers.

'Although less ambitious than our proposal, it will stimulate innovation... it will also generate fuel savings for consumers, mainly small and medium sized enterprises.'-Reuters