The motor industry looks to have secured a reprieve from tough measures designed to rapidly reduce CO2 emissions.

EU politicians have proposed a reduction to 125g/km by 2015. The European Commission is now set to be forced to water down its plan to introduce rules demanding CO2 cuts to 120g/km by 2012. Draft legislation is expected in December.

In 2006, hybrid sales in the world’s largest markets rose by 20 per cent and with a huge increase in greener vehicles – electric, hydrogen, hybrid and cleaner diesels – predicted in the next 2 years it’s becoming more likely the motor industry will be able to cope with compliance.

Currently, Honda, Toyota and BMW are leading the way in exploring methods of tackling CO2 emissions.