Spain/Italy move to CO2-based taxation and car CO2 limits

Wed 25 July 2007 View all news

The Italian Green Party is seeking to institute a CO2 limit at a new national level of 120 g/km from new cars. The Greens are hoping to gain the backing of the full government within which they are a junior partner.

According to ENDS, the Italian Greens aim to have the measure adopted alongside the 2008 national budget. They have also launched a petition with the aim of gaining the support of the wider public. The plan proposes that manufacturers would be able to sell vehicles over the limit as long as they had an overall average which fell below 120g/km. The proposals would clearly favour small car manufacturers such as Fiat, Italy's biggest company.

Elsewhere in southern Europe, a carbon-based car taxation system is set to be introduced in Spain from 2008 with the lowest emitters being zero-rated. The Spanish government is also examining the option of a reform of road taxation along the lines of the Italian proposal.

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