Unit 2: Externalities and Government actions to reduce them: Motor manufacturers and CO2 limits

This BBC clip says the EU is proposing fines on car makers who fail to meet targets for cutting emissions of CO2 from new vehicles they produce

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7150000/newsid_7151300?redirect=7151316.stm&news=1&bbwm=1&nbwm=1&bbram=1&nbram=1&asb=1 >

a) What are the negative externalities the EU is trying to reduce with these proposals?
b) What 2 methods of correcting the market failure is the EU proposing to use?
c) To what extent do you think the measures will succeed?