The aim of this report is to discuss the need for policy instruments that can help Europe reduce the specific CO2 emissions (per km) from new passenger cars. It includes an analysis of the results of the 1998 voluntary agreement between the European Commission and the motor industry on CO2 emissions from new cars.
Europe may in future make use of high energy and carbon taxes or a cap and trade system that covers carbon emissions from all sectors of society. In such a situation it does not necessarily follow that a supplementary tool that affects the specific emis- sions of new cars should be introduced. The next section of this report explains why this is something that the Council and the European Parliament should nevertheless contemplate.