The European Commission has revealed figures of what it believes the cost impact will be of new carbon dioxide vehicle emission reduction targets.

The EC says it will cost €10-23bn (£6.8-£15.6bn) or €24-54 (£16-£37 ) per tonne of CO2 abated to reach the EU objective of 120g/km of CO2 by 2012.

The lower figure in each case assumes the widespread use of taxes and consumer awareness-raising to increase demand for more efficient cars. No mention is made of decreased car exports and increased imports or to some shifting of jobs and production outside the EU.