The European Union is set to launch new regulations to force car manufacturers to reduce the amount of emissions their vehicles produce.

Under current rules, European manufacturers have been following a voluntary emissions-reduction programme, with the aim to reduce emissions to an average of 140 grams per kilometre by 2008.

However, it has been claimed that this target will not be met and environment commissioner Stavros Dimas has been quoted as saying that the EU will now look at imposing binding legislation on the manufacturers.

"We will be bringing out legislation to cut CO2 emissions from cars soon," Mr Dimas told the European Voice newspaper.

The move is likely to cause many manufacturers to speed up their efforts to reduce carbon emissions from their vehicles, as they are likely to face tough penalties if they fail to meet the targets.

The system could be similar to schemes in California and other parts of the US, where vehicle emissions technology has become an important industry as automakers look to comply with the rules.

Ÿ Adfero Ltd