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Environmentalists and the automotive industry have clashed over plans by the European Commission to set new limits on car emissions, which carmakers called too costly and activists said were too lax.
The Commission, the European Union executive, is proposing that carmakers should be required to reduce carbon dioxide
emissions from new cars sold in Europe to an average 130g/km by 2012. It would target an overall cut in car emissions to 120g/km by 2012 from current levels of roughly 161g/km.
The goal would be achieved through biofuel use and other technology, in addition to improved standards from carmakers themselves.
Reducing CO2 emissions from passenger cars is one of the EU's objectives under the Kyoto Protocol, an international treaty on climate change. CO2 is linked to increased global warming.
The car that emitted the lowest CO2 emissions during the Auckland-Wellington-Auckland Energywise rally last November was the smart fortwo coupe, with 169.23g/km.
Honda Civic Hybrids recorded around 177.
Fiat's Grande Punto was next with 184.47, followed by the Volkswagen Polo diesel with 185.13.
The Ford Territory Turbo SUV emitted the most, 400.72g/km. Holden's SUV Captiva pumped out 376.67.
Petrol engines emit more carbon dioxide emissions than diesels, but diesels pump out more polluting particle matter, or soot.
However, carmakers say that newer diesel exhaust technology, is reducing soot output by around 90 per cent and has the potential to comply with the toughest emission limits in the world.
EU environmentalists said the 120g/km should have been imposed on carmakers directly.
"Climate change is a long-term challenge and the car industry also needs a long term outlook,"said Jos Dings, director of environmental group T&E. "An 80g target by 2020 would ensure that we double fuel efficiency within a decade."
But the European Automobile Manufacturers Association (ACEA), a lobby group, said the 130g/km figure was still too high and not the most cost-effective way to curb climate change.
"We're very committed to fighting global warming together with every other participant," said ACEA spokeswoman Sigrid de Vries.
"But putting the burden mainly on the car industry is too costly and not cost-effective, and it will lead toward loss of jobs and manufacturing in Europe."
ACEA represents manufacturers including BMW, DaimlerChrysler, Porsche, Fiat and Renault.
The proposal is part of EU efforts to fight climate change.
European carmakers are expected to miss a voluntary goal to reduce the average carbon dioxide output from new cars to 140g/km by 2008, a fact that has given weight to arguments for binding legislation.
Asian carmakers have until 2009 to meet the voluntary target. The 2012 targets will apply to all cars sold within the 27-nation bloc, however, affecting car manufacturers in the United States as well.
German carmakers, backed by German Chancellor Angela Merkel, want different CO2 limits for different-sized cars.
This would favour German carmakers such as BMW and Mercedes-Benz, which sell large, heavy cars that emit more CO2 than small cars.
Renault, PSA/Peugeot-Citroen and Fiat did not sign a letter sent to the EU Commission last month by the heads of five German carmakers protesting plans for a CO2 limit of 120g/km.
French and Italian carmakers apparently share the view that an approach by segment would be unfair to carmakers that have made huge investments in technology to lower their CO2 emissions.
French and Italian manufacturers mostly sell small, low-CO2-emitting vehicles. The Citroen C3 and Fiat Punto are among the cleanest.
Meantime, a car powered by natural gas has topped an annual US list of the "greenest" 2007 model vehicles - beating petrol-electric hybrids like the Toyota Prius and Honda Civic, which were second and third.
Honda's Civic GX, a US$25,000 ($36, 382) natural gas vehicle sold in California and New York, stood atop the list, based on a "green score" derived from fuel economy as well as health and global warming impacts.
Natural gas is a much cleaner burning fuel than petrol, but it is also much harder to find for refuelling.
As a result, Honda in the US is also selling a refuelling pump for homes with a natural gas connection.
Japanese carmakers dominated the "greenest" list, put together by the American Council for an Energy-Efficient Economy.
The Nissan Altima Hybrid and Toyota Yaris, took fourth and fifth.
Others on the list include vehicles from Hyundai and Kia.
