The second part of Professor Julia King's review of low carbon cars has been published alongside the Budget Statement.

The proposals suggest that more action should be taken to inform consumers about the fuel economy of their vehicles, and encourage them to choose low carbon vehicles through incentives. This is reflected in the Chancellor's budget announcement yesterday that the current vehicle ownership tax structure will be enhanced to differentiate more between emission bands.

Professor King was commissioned by the Chancellor to begin her review in Spring 2007. The first part of the report was published last autumn and focused on vehicle technology. The second part focuses on policy options.

The review also recommends encouraging eco-driving and introducing dashboard technology to support this, and stimulating the use of public transport and cycling.

A total of 50 recommendation also include:

  • The adoption by the EU of a 100g/km CO2 new car sales-weighted average target for 2020.
  • The setting in place an EU process for regular car CO2 target setting every 7-10 years
  • The strengthening of demand-side policy measures to enable consumers to make greener choices, including the extension of the colour-coded labels beyond new cars to second-hand cars (and vans, when the required CO2 information is available) and making their use compulsory. Also including comparative information on CO2 emissions on the label and giving prominent information on fuel cost savings.
  • The introduction of colour-coded tax discs using a 'traffic-lights' approach to clearly exhibit vehicles with lower, average and higher emissions.
  • A strengthening of the regulation of vehicle advertising so that CO2 emissions and fuel economy are presented more prominently.
  • A recommendation that public bodies should look to match central government by reducing the average emissions of procured vehicles.
  • That the Department for Transport should develop and reinforce the 'Act on CO2' campaign, using new marketing approaches and placing greater focus on the financial benefits to consumers of 'greener' behaviour.

See also: UK: Budget includes prospect of VED reform

UK Budget: new VED rates at a glance