Britain calls on the EU to include the transportation sector in the emissions trading scheme which is current set up to impose CO2 emissions limits on 12,000 factories and power stations. The transportation and aircraft industries, two of the larger sources of carbon emissions, are not currently included in the scheme.

The European auto industry, represented by the European Automobile Manufacturer's Association, have signed a voluntary agreement with the EU on reducing CO2 emissions in passenger cars by 25% by 2008. The challenge will be to sustain performance and power expectations of consumers while finding the technologies to meet the emissions targets and enhanced fuel efficiency.