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The company car market produced a 3.5% fall in CO2 from the new cars registered during 2008.
The average figure is now 158.4g/km, compared with 164.2 in 2007 and 178.8 in 2001.
The bad news is that retail has now passed fleet, dropping 4.9% to 157.6g/km off the back of private buyers migrating towards smaller cars.
The Society of Motor Manufacturers & Traders, which released the figures, said that to meet the 2015 target of manufacturers averaging 130g/km of emissions, the rate of decline needed to continue at 2.5% per year.
The SMMT claims that cars now account for just 11.5% of the UK's CO2 emissions.
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