The commitment made by the Association of European Automobile Manufacturers (ACEA) to reduce CO2 emissions from passenger cars has recently been assessed by the Commission for compliance with EU competition rules. The Commission has taken the view that there are no problems with the agreement in this respect. This represents the final hurdle before the agreement, which contains an ACEA undertaking to attain an average target of 140g of CO2 per kilometre for new passenger cars by 2008, can be implemented. In effect, the agreement which will be jointly monitored by the Member States and the Commission should lead to a reduction of 25% of CO2 emissions compared to 1995 levels. The Member States will provide the Commission with publicly available data on the development of the average CO2 emissions of new passenger cars. On the basis of this data, the Commission will be able to determine if the average target is met and have announced the possibility of introducing binding legislation in cases where the target is not achieved.