Say yes to cheaper van, home and car insurance

Stavros Dimas, the European commissioner for the environment, has provided the strongest indication yet that the European Commission will bring about an EU ruling on car emissions. He also hinted that car manufacturers would face penalties if they did not comply.

In an interview with European Voice newspaper, Mr Dimas confirmed: "We will be bringing out legislation to cut carbon dioxide emissions from cars soon," although he could not provide a specific date.

Mr Dimas also allayed the fears of environmentalists who were concerned that legislation would be diluted to concentrate solely on biofuels, by stating that biofuels and reducing carbon dioxide emissions were entirely separate issues.

In order for the proposals to become legislative rulings, all 25 commissioners would need to agree on the proposals. As of yet, no official decisions have been made.

The proposals were not universally praised however, with some criticising the moves for being too large to be undertaken in one go.

Sigrid de Vries of ACEA, the European industry group, said: "As far as we are concerned legislation is not appropriate. ACEA would like instead to see an integrated approach to carbon dioxide emission, involving taxation measures and fuel industry improvements as well as car manufacturers."

Green motoring is a subject which has been thrust into the media spotlight in recent weeks thanks to the Stern Report's damning evidence of the UK's contribution to climate change. Many people are now looking at 'going green' and as a result, many companies, including car insurance companies, are offering incentives for being environmentally friendly.