This is where we get into politics. The US as a whole wants to adopt somewhat tougher emissions regulations, and car manufacturers want to minimize the number of different standards they have to meet in a single market. It turns out that everyone's on board with "just make the California standards the national standards" and so that happens. Then California tightens their standards again and the cycle repeats.
Europe doesn't have a comparable political subdivision with such a high natural propensity for smog formation and the ability to make their own standards. The regulatory differences emerge from a combination of geography and political systems.
http://www3.epa.gov/region1/airquality/nox.html
http://ec.europa.eu/clima/policies/transport/vehicles/cars/d...
No. The engines were (re-)tested at 0.62g/km, EURO5 allows 0.18g/km, EPA Tier 2 / Bucket 5 allows 0.043g/km.
> Why US Standards are different?
US standards are much more stringent on NOx, I expect because historically they regulate gasoline engines which produce relatively little NOx, and the standard bodies could thus easily clamp down on that.
The EURO standards actually have two profiles, one for gasoline and one for diesel, with the diesel profile allowing significantly higher NOx emission than the gasoline profile. Though even with that, the US EPA standard remains more restrictive than the EURO6 gasoline standard.
Here are the limits of the EURO standards: https://en.wikipedia.org/wiki/European_emission_standards#Em...
Here are the limits of EPA Tier II: http://www.dieselnet.com/standards/us/ld_t2.php#bins
(warning, EURO NOx is in g/km, EPA is in g/mi)
Diesel gets better mileage and tends to be cheaper than gas (depending on local taxes), which can make a significant difference with the high fuel prices in Europe.
The oversight is also much more fragmented because it is less centralized than in the US. As I understand it, the oversight is left to the member states, so manufacturers tend to shop around for the most lenient one.
Sovereign countries have the right to set their own regulations and bureaucrats don't have a strong track record of international collaboration.