The European Parliament has approved plans to impose taxes on motorists based on their CO2 emissions.

In a proposal mooted by the European Commission, drivers in the EU could face taxation based on their car usage, as opposed to car ownership. The most polluting vehicles could face the heaviest levies as registration tax is scrapped.

"If we want to meet the objectives of the Kyoto protocol, our CO2 emissions should be reduced significantly," commented Danish MEP Karin Riis-Jorgensen.

The passenger car market in Europe, inevitably fragmented by varying levels of registration tax, needs to be brought under "a common EU tax base" in order to lower the levels of harmful pollutants, he added.

The proposals would have a major impact on the demand for more green technology in European vehicles, with hybrid and other low-emissions cars likely to become increasingly popular as a result.

Transport accounts for 28 per cent of CO2 emissions in the EU, official statistics suggest, of which road traffic is responsible for 84 per cent.


Ÿ Adfero Ltd