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As the markets require a more environmentally friendly and high fuel consumption vehicle, we have to satisfy bilateral target. Though many new after-treatment techniques like LNT, SCR are investigated to meet both strong emission regulations and low fuel consumption, high cost of these techniques should be solved to adopt widely. This paper describes how to optimize the dual loop EGR as a tool to reduce CO₂ emission of a HSDI diesel engine in the passenger car application. Focus is not only on the optimization to obtain the maximum CO₂ reduction but also on how to assess and overcome various side effects. As a result of careful optimization, as much as 6% CO₂ reduction was achieved by introduction of low pressure EGR loop, maintaining the same boundary conditions as those with high pressure EGR loop only.