The European Commission has proposed new legally binding targets for carbon dioxide emissions from new cars and vans. It intends to consult on these proposals before issuing any legislative proposals (which are not expected till the end of 2007, or by mid 2008 at the latest).

It is feared that the Commission's proposals will threaten the viability and competitiveness of the EU car industry. The proposals were preceded by heated debate between the Commission's Environment and Enterprise Directorate Generals and fierce lobbying from the car industry.