The average level of CO2 produced by new cars has fallen in recent months, new research has revealed.

Environmentally-conscious car insurance customers may welcome the news that CO2 levels fell by 4.5 per cent during the third quarter of this year.

According to Clean Green Cars, the average new car now produces 156.6 grams of CO2 per kilometre (g/km).

Jay Nagley, publisher of Clean Green Cars, said that the car industry has previously claimed the EU's 2012 target of reducing emissions to 130g/km is unlikely to be achieved.

However, the publication's research indicated that if the rate of progress seen in the last quarter is maintained, average CO2 levels will fall below the target.

"With buyers increasingly turning to fuel-efficient smaller models and the economic clouds getting ever darker, consumers may force the car industry to meet the target, rendering the argument with the EU irrelevant," Mr Nagley remarked.

Car insurance customers can now find out the carbon footprint of new cars thanks to the use of a new colour-coded labelling system.

The findings of a survey by the Low Carbon Vehicle Partnership published by the Society of Motor Manufacturers and Traders found that the labels were being used in 93 per cent of car dealerships.

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