What colour is your car?

5.49.37pm UTC (GMT +0000) Thu 16th Jun 2005

New cars are to be colour coded to indicate their pollution levels but a South West Euro-MP says the scheme does not go far enough.

The spectrum of new labels will be displayed on vehicles in car showrooms from the start of July. A dark green label will signify lowest emissions of the global warming gas carbon dioxide (CO2) while a red label will signal the worst polluter.

UK motor manufacturers have agreed to introduce a voluntary scheme in a bid to head off the prospect of EU legislation. Similar energy efficiency ratings now appear on 'white' goods such as fridges and freezers.

South West MEP Graham Watson has welcomed the scheme but says much more must be done to cut pollution.

He said:

"It's good that consumers will be able to take pollution into account when making their choice but the introduction of greater financial incentives would be even more valuable.

"The current tax system has failed to encourage people to buy smaller cars.

If people want to drive a gas guzzler then the Government must require them to pay a significant amount towards the environmental damage they are causing."

Since 2003 vehicle excise duty has been based on CO2 emission, but the difference between lowest and highest level of the annual tax is only £90. Mr Watson says the extra money raised from increased taxation should be used as an incentive to encourage more domestic energy saving initiatives.

The average car is almost half a tonne heavier today that 30 years ago and improvements in fuel efficiency have virtually ceased. The Society of Motor Manufacturers and Traders claims extra weight of cars is to blame for Britain falling well short of a European industry target for reducing emissions of CO2.

Emissions from new cars fell by only 0.4% last year, the lowest reduction on record. With sales of 4X4 and people carriers soaring average emissions could actually increase this year.

The grading runs from A (dark green) to F (red). An 'A' grade is currently achievable only by electric vehicles; hybrid fuel cars and very small cars are category 'B'. Most family saloons fall into categories 'C' and 'D' and the worst gas-guzzlers will carry the category 'F' red badge of shame.

The labels will also have information such as the estimated fuel costs for 12,000 miles and the amount of vehicle excise duty to be paid on the car.