Volvo has developed a low carbon dioxide emitting C30 variant and new diesel Powershift transmission as part of its focus on biofuels and hybrid technology.

The C30 Efficiency will make its global debut at the Frankfurt Motorshow on September 11 and is powered by a 103bhp 1.6-litre turbodiesel engine.

Volvo says the changes it has made to the aerodynamics has improved fuel consumption to 62.8mpg and reduced CO2 emissions to below 120g/km.

The Volvo C30 Efficiency becomes Volvo’s first model to gain a B-band VED tax rating and will also be exempt from the London Congestion Charge, if the proposed changes to the scheme go ahead next year.

Early 2008 will also see the introduction of a new 2.0-litre turbodiesel (2.0D) automatic transmission with Powershift technology for the Volvo C30, S40 and V50 model ranges.

The Powershift gearbox consists of two clutches that work in parallel to deliver improved fuel consumption compared to a standard automatic gearbox. It works by eliminating disruption in torque delivery during the gearchanging process. This means gearshifts are instantaneous, which improves fuel efficiency.

Magnus Jonsson, senior vice president research and development at Volvo Cars, said: “We are firmly committed to lowering the fuel consumption of our conventional petrol and diesel engines. By doing this we will continuously reduce the overall CO2 emission level for our whole model range.”

Volvo C30 Efficiency.

Transport for London still intends to link the congestion charge to car carbon dioxide emissions. Models which emit under 120 g/km CO2 or less will be exempt, while those over 225 g/km will pay £25 a day to enter the recently enlarged central London zone. Most other cars and commercial vehicles will still pay £8 a day.