Archived press release

Car eco-labels welcomed - but tougher taxes for gas-guzzlers still needed

10 February 2005

A new colour-coded labeling scheme for new cars warning potential buyers of their impact on global warming, and unveiled today (Thursday), has been welcomed by Friends of the Earth. But the environmental campaign group says that increasing tax on gas-guzzlers and reducing it for fuel-efficient vehicles would be even more effective in encouraging the purchase of greener cars.

The new labels, which will be in showrooms and websites, will be graded from red (for the biggest gas-guzzlers) through to green (for the most fuel-efficient). The voluntary scheme, which all major manufacturers have signed up to, will start later this year.

Friends of the Earth is calling on the Chancellor to introduce four new road tax bands - with £50 between each band - to encourage people to buy less-polluting cars. VED for the most polluting cars should be raised to £500 per year (within 5 years), with the cleanest, most fuel-efficient cars charged no VED (starting now) [1]. Government research shows that this would persuade one third of new car buyers to choose a more fuel efficient model [2].

SUVs and 4x4s are amongst the most environmentally damaging, biggest gas guzzlers on Britain's roads. Despite this a Vauxhall Astra Estate pays the same VED as a 4.0 litre Land Rover Discovery, even though the Discovery churns out over twice as much carbon dioxide, the main gas causing climate change. Currently, there are not enough incentives to buy greener cars.

Friends of the Earth's transport campaigner, Tony Bosworth, said:

"Giving motorists more information about how polluting cars are is important. But we must also encourage people to make the right choices by cutting car tax on the most fuel efficient cars and increasing it for gas guzzlers. The Chancellor must get tough on climate change in his next budget and reform Vehicle Excise Duty."

Moreover, Friends of the Earth is angry that the Government has taken so long to bring in the new label. Government-funded research showed in 1999 that colour-coded comparative labels of this sort are more effective than the label proposed by the motor industry. But the Government has taken since then to persuade the industry to change [3].

1. See 2. "Reform of Vehicle Excise Duty"

2. 'Assessing the Impact of Graduated Vehicle Excise Duty - Quantitative Research'

3. Vehicle Environmental rating Scheme: Interim Report - November 1999

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Published by Friends of the Earth Trust