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An increase in taxes for the most polluting vehicles and incentives for the cleanest car technology can be expected in the 2008 Budget following an announcement by the Chancellor.
Revealing the interim version of the The King Review of Low Carbon Cars Alistair Darling said the final King Review would be "published in time to inform Budget 2008".
Key points from the interim report include:
. In the long term, decarbonisation of road transport is achievable but will require clean power sources and major breakthroughs in vehicle technology;
. Meanwhile, there is great potential for reducing emissions, immediately and at low cost;
. Vehicle technology exists that can deliver CO2 reductions of 30% compared with today's equivalent models and these could be standard within 5-10 years, if manufacturers see a market for them;
. Consumers play an important role, and low carbon choices can be made now, for example, by choosing the most efficient vehicle in the preferred class. A typical driver can reduce their CO2 emissions (and fuel bill) by 25%; and
. Fuels must be considered on the basis of their life-cycle CO2 emissions. Biofuels offer potential for CO2 savings but care must be taken not to expand demand too quickly before crop breakthroughs and robust environmental safeguards are in place.
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