CO2 emissions from transport are responsible for almost 30% of all CO2 emissions in Europe. This share is still growing. In 1995 the European Commission and the Association of European Car Manufacturers (ACEA) signed a voluntary agreement to reduce the average CO2 emissions per car kilometre, with a target of 140 gCO2/km in 2008. The Japanese and the Korean car associations followed, with slightly different targets.

In a recent monitoring report the progress of car manufacturers towards this target up to 2004 are published. European Commissioner for Environment Stavros Dimas says that the industry must “step up its efforts. This will be crucial to achieving the Community objective of

120 gCO2/km by 2012 at the latest.” Present levels are around

160 gCO2/km. To meet the standard of 140 gCO2/km in 2008, the car industry has to reduce emissions by at least 3.3 % a year. From 1995 to 2005 an average reduction of 1.8% a year was achieved in Europe, while the Korean car industry achieved a 6% reduction from 2003 to 2004.

An analysis from the European federation for Transport and Environment (T&E) shows that carmakers are even further off track. The figures are based on industry data, which in addition covers 2005. According to T&E, carmakers will have to reduce CO2 emissions from new cars at an annual rate of 4 to 5%.