The International Energy Agency (IEA) believes car manufacturers and owners need to take more responsibility for pollution.

The IEA has put forward suggestions in its report, Act Locally, Trade Globally – Emissions Trading for Climate Policy, which include calls for car makers to pay the emissions costs of their cars in a bid to cut down on greenhouse gases.

Richard Baron, co-author of the IEA's report, told the Globe and Mail: "There has to be a way to signal to car owners the environmental cost from driving.

"Secondly, we would force car companies to build better cars," he added.

The IEA is proposing that manufacturers pass the cost of air pollution to their consumers in the cost of the cars, which it is hoped would encourage people to buy more environmentally friendly vehicles.

The European Union began its Emissions Trading Scheme in January, which forces some 12,000 businesses to pay for any emissions over a set level.

The IEA has welcomed the initiative but stresses that the scheme does not currently take into account the emissions of cars.


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