By CONSTANT BRAND, Associated Press

BRUSSELS, Belgium - The European Commission declared war on gas-guzzlers on Wednesday, proposing binding rules to force carmakers to cut carbon dioxide emissions from all new cars sold in the European Union by 2012, arguing the tough measure was needed to fight global warming.

The EU executive’s plan, which faces strong opposition from the car industry, foresees the drafting of lower emissions limits — a cut of 18 percent or 130 grams of CO2 per kilometer from current emissions levels — for new cars sold in or imported into the EU by 2012.

EU officials acknowledged the move would likely lead to higher car prices as they try to force Europeans to adopt greener modes of transport amid growing calls for action to save the environment.

Read the article on BusinessWeek Online.