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21^st March 2002 (Source: DTLR )

The Government today announced plans for cars to carry colour-coded labels containing details of their environmental credentials.

The pilot scheme, which would give consumers comparative data on the environmental impact of the cars they buy, is the subject of a DTLR consultation paper.

Launching the document, Transport Minister David Jamieson said:

"We are proposing a comparative label for cars which would be based on the environmental performance categories used in the Graduated Vehicle Excise Duty system.

"We believe this would make for an effective information label, consistent with and reinforced by the environmental message given through the new taxation regimes."

Motorists see the environmental effect of different cars as increasingly important - especially as the vehicle excise duty (VED) system, effective from 1 March 2001 and company car tax, effective from this April, are based on a car's CO2 emissions.

The consultation paper invites comment on a label based on the environmental performance categories used in the graduated VED system.

The paper, which also discusses other forms of labels, proposes to pilot the scheme following the consultation. At present, there is no proposal to make the label mandatory.

Since 1983, the UK has had a legal requirement, under the Passenger Car Fuel Consumption Order (PCFCO), for new cars on display in showrooms to carry a label giving fuel consumption information. European Union (EU) Directive 99/94/EC requires EU countries to ensure that, from January 2001, all new cars carry a label showing CO2 emissions per km and fuel consumption. In addition, they must ensure that this information is contained on a poster displayed at showrooms, in promotional literature and in a free guidebook listing data for all models of passenger cars on sale. This Directive was implemented in the UK in November last year.

Notes to Editors
The Government's proposal is to have a label which;

• will be based on CO2 emissions;
• will apply to new cars;
• and also to used cars registered since March 2001 (when CO2 emissions data was included on registration documents) and sold in commercial premises;
• will be a comparison, not endorsement, label;
• will provide an absolute comparison;
• will be based on the recently introduced four Vehicle Excise Duty bands, which are graduated according to a vehicle's CO2 emissions and its fuel type - i.e. petrol, diesel and alternatively fuelled;
• and will also provide the present information required by the Directive.

• The Government's proposal is to conduct market research on the preferred label prior to piloting it more widely. Initial research would take place following consultation and the announcement of the preferred label.
  Following market research, the label would then be piloted in order to gauge a broader range of view, including from traders and from consumers in a showroom environment.
  The Government's proposal is that the pilot should run for one year, from late 2002 to 2003. We propose that the pilot will cover both new and second hand cars sold in commercial premises, thus providing consumers with information on a range of cars. It is intended to run pilots in selected show rooms for varying time periods.
  Although this consultation paper focuses on one suggested form of label, consultation responses may suggest that it would be useful to cover more than one option in the pilot. It is also intended to explore a range of formats, from simple paper based displays to more sophisticated electronic versions.
  

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