Taxing Vehicles Based on Their Environmental Impact

Germany's government plans to tax cars based on emissions instead of engine size to help tackle climate change, Transport Minister Wolfgang Tiefensee said.

Tiefensee told a news conference early Sunday that German and other European carmakers had to do more to protect the environment, after the head of the UN Environment Programme had chided Europe for complacency over climate change.

"The government will be pursuing that aim and that's why we're going to reform the motor vehicle taxes. The size of the engine will no longer be the determining factor but rather the impact on the environment, not only CO2 but other pollutants," he said.