ALL new cars entering British showrooms will have to carry labels giving fuel economy and carbon dioxide emission level details, following a decision by EU ministers to highlight the 'green' credentials of vehicles to consumers. The directive, which is expected to come into effect this year, also formalises the collection of emission data from new vehicles on a Europe-wide basis.

EU ministers want to see progress being made by manufacturers towards lower new car emissions of carbon dioxide, the main greenhouse gas. The Association of European Automobile Manufacturers has already promised to reduce CO2 emissions from new cars to 140g/km by 2008, but the EU aims to cut emissions to 120g/km of carbon dioxide by 2010.

It is also looking to extend the voluntary agreement on emission reductions from cars to the Japanese and Korean Automobile Manufacturers Association. EU ministers also gave approval to a groundbreaking agreement which will slash pollution from lorries and buses by 60% using particulate traps and modern engine technology.