MEPs are set to vote on whether or not failure to meet voluntary emissions levels will be penalised financially.

Car advertising is also set to come under scrutiny as MEPs debate whether a 'significant proportion' of the space used to advertise new cars should be devoted to providing information about fuel economy and emissions.

The European Commission is to make legislative proposals on reducing carbon emissions from cars early in the New Year. Chris Davies, the Liberal Democrat MEP, said he believed the measures would be good for the consumer, good for the environment, and good for the future of car making in Europe. "Many MEPs would like to punish the car makers for failing to reduce carbon emissions, but that's not an acceptable approach,” said Davies. "The technology exists to bring about significant improvements. We need now to set ambitious targets but also to give the industry sufficient time to make the design changes at the least possible cost."