Drivers may face CO2 limit

• Emissions allowance scheme planned
• Carbon trading scheme could be used
• EU needs to cut carbon dioxide emissions

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Motorists may face a limit on the amount of carbon dioxide they are allowed to emit, if Government proposals reach fruition.

David Miliband, the Environment Secretary announced the radical plans during a speech in Cambridge where he emphasised the EU's need to place an overall cap on the amount of carbon dioxide released.

His initial target is to bring aviation under the umbrella of the EU emissions trading scheme. This has already been backed by a number of airlines including British Airways. In the longer term, he hopes to incorporate cars, which produce 60% of road emissions.

One option is to allow drivers to buy and sell their emissions allowances as the European Union looks to extend its emissions trading scheme to the roads.