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The ACEA agreement refers to a voluntary agreement between the European Automobile Manufacturers Association and the European Commission to limit the amount of carbon dioxide emitted by passenger cars sold in Europe. With 18 million cars sold each year, Europe is the last major car market in the world.Signed in 1998, the agreement seeks to achieve an average of 140 g/km of CO2 by 2008 for new passenger vehicles sold by the association's cars in Europe. This target represents a 25% reduction from the 1995 level of 186 g/km and is equivalent to a fuel economy of 5,8 L/100 km or 5,25 L/100 km for petrol and diesel engines respectively.Besides the agreement with ACEA, the European Commission also closed agreements with the Japan Automobile Manufacturers Association and Korea Automobile Manufacturers Association.