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Carbon dioxide emissions have been slashed thanks to the scrappage scheme and recession, according to the Society of Motor Manufacturers and Traders (SMMT), which has revealed that average CO2 levels were down 5.4 per cent in 2009 to 149g/km, compared with 2008.

This drop is three times bigger than the average annual rate and the largest since the study was launched in 1997. The reduction is attributed to motorists reacting to the recession by turning to more economical cars, and the scrappage scheme cutting the number of older, less efficient cars on the road.

By the end of last month, the number of new car registrations through scrappage had hit 330,000. The average CO2 emissions of a car bought through the scheme was 132.7g/km - 9.9 per cent below the overall new car market norm and 27 per cent less than an average scrapped car's figure.

During the May to February period, 73 per cent of all cars bought through scrappage were from the mini and supermini segments. This is compared to 42 per cent of all cars sold.

Commenting on the data, SMMT chief executive Paul Everitt said, "The scrappage scheme ends this month and has provided a vital stimulus during a difficult period. The industry must now work to sustain this momentum and is urging government to postpone the introduction of the first year rate of VED and avoid dampening demand while the economic recovery remains fragile."

At the current rate of reduction in emissions, the UK will hit the 2015 average new car emissions target of 130g/km set by the EU.

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