EU car groups warn on CO2 tax

European carmakers have vowed to oppose a new carbon tax if it results in higher prices for diesel oil - complicating policymakers' efforts to press ahead with the idea.

ACEA, the car industry trade group, says a carbon tax could punish European manufacturers, who are world leaders in diesel engine technology, while making it difficult for them to meet binding targets on greenhouse gas emissions.

The stance by the powerful industrial lobby highlights the challenges confronting the European Commission as it seeks to build support for a carbon tax.

European Association of Automobile Manufacturers (ACEA): Homepage http://www.acea.be/

ESO: Background information: France backs down on plan for environmental tax http://www.europeansources.info/record/france-backs-down-on-plan-for-environmental-tax/

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