EC limits on CO2 emissions for cars set to boost fleet costs

New proposals by the European Commission (EC) to limit CO2 emissions for cars and vans manufactured in Europe to 130 grams per kilometre or less by 2012, could lead to higher price tags for companies purchasing fleet vehicles.

The legislation, which will also affect cars that are imported to Europe for purchase, is expected to be passed in the early part of next year, giving manufacturers three years to invest in the technology needed to produce greener vehicles.

The Society of Motor Manufacturers and Traders (SMMT) believes the plan is over ambitious, and that the current lack of interest in green vehicles coupled with the cost of the new technology, will result in price hikes.

A spokesman for the society said: "If manufacturers are supposed to reach this level they will have to increase the cost of the vehicles, so the only person that will pick up the cost of this proposal is the driver."