Porsche has been one of the most vocal carmakers against the EU’s proposal that would see the level of carbon dioxide emissions of cars manufactured in Europe reduced to only 130g/km by 2012. The sports carmaker has now announced that it will reduce CO2 emissions of its cars by a 'significant margin.' By next year, all Porsche cars will meet strict EU5 emissions standards that are scheduled to take effect in 2009 and it will even meet the next phase of regulations scheduled to roll out in 2014.

It's new drivetrains will also be capable of running on flex-fuel ethanol blends of 10% for the coupes and 25% for the Cayenne SUV, and Porsche has also confirmed that it’s developing a new system that can run on both gasoline and E85 fuels. First priority, however, is a new electric-hybrid powerplant that Porsche is developing in conjunction with Volkswagen for its next generation Cayenne due by the end of the decade. The estimated mileage rate will be a very economical 9L per 100km or roughly 31.4mpg.

After this latest announcement from Porsche, we’re sure the other German carmakers will be quick to follow suit.