A consortium led by Jaguar has created an XJ luxury saloon that could emit just 50g/km of CO₂ on average.

The 'Limo-Green' XJ is the fruit of two years' work by Jaguar, Lotus, the MIRA research organisation and British supercar maker Caparo. The £4.2m project received funding from the Technology Strategy Board, a Government organisation.

The first working prototype has beaten its initial performance and emissions targets, which were 120g/km of CO₂ and an eight-second 0-62mph sprint....

Skoda has launched its greenest ever car - the Fabia Estate Greenline II, which emits just 89g/km of CO₂ with average fuel consumption of 83.1mpg.

Along with the new Roomster Greenline II, the pair marks the start of the second generation of eco-friendly Greenline Skodas. The bigger Roomster returns 67.3mpg and emits only 109g/km of CO₂.

Both are powered by a new three-cylinder 1.2-litre diesel engine, which uses a supercharger rather than a conventional turbocharger. It develops 74b...