European MPs have voted in favour of a report calling on car manufacturers to be forced to pay financial penalties if their new vehicles exceed C02 reduction targets.
Chris Davies, the North West Liberal Democrat MEP who had the task of steering the proposals through the European Parliament, said that the measures would be good for the consumer, good for the environment, and good for the future of car making in Europe.
Some 13% of all Europe's carbon emissions stem from passenger cars. Absolute volumes of CO2 continue to rise because of the growing number of cars on the roads and a shift towards the sale of larger and more powerful vehicles, including 4WDs.
The call for regulation follows the failure of European car manufacturers to meet the reductions promised in a voluntary agreement made ten years ago. Average emissions from new cars are thought at present still to be close to 160g C02/km.
The Commission originally wanted a less stringent reduction of 130g CO2/km to be made by 2012. But the Parliament has adopted a compromise proposal from Chris Davies for the setting of a 125g target to be achieved by 2015 by technical means alone. Savings achieved through other measures should be treated separately he argues.
Mr Davies said: "Many MEPs would like to punish the car makers for failing to reduce carbon emissions, but that's not an acceptable approach. We are where we are.
"The technology exists to bring about significant improvements. We need now to set ambitious targets but also to give the industry sufficient time to make the design changes at least possible cost."
The MEP claims that any increase in the cost of low emission vehicles will be largely offset by the savings that drivers will make from their improved fuel economy.
The report to Parliament called for tough financial penalties to be imposed on manufacturers that fail to reduce average emissions by 2015, and for the creation of a closed trading scheme to provide business decision-makers with more flexibility and to give incentives to manufacturers of low emission vehicles.
The MEPs have also backed calls for 20 per cent of the space used to advertise new cars to be devoted to providing consumers with information about the vehicles' fuel economy and carbon emissions.
Mr Davies claims changes to car advertising are an important part of the package.
He said: "Car manufacturers claim they simply respond to consumer demand, but I believe they use advertising to shape consumer demand.
"The European Parliament has sent a clear message to insist that advertisements give car buyers more details of the fuel economy and emissions performance of the vehicles on sale. The information should be upfront and bold, not buried away in the small print."
The European Commission is to make legislative proposals on reducing carbon emissions from cars early in the New Year.
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