If people used their cars less, CO2 emissions would drop. Replacing VED with additional tax on fuel would possibly make people think a bit more about how much they used their cars. So CO2 levels would reduce. In the meantime massive amounts of energy (resulting in extra CO2 production) is being expended on manufacturing the lower CO2 emission cars. So is the total CO2 production really going down under the present system I wonder.
Why not have the vehicle purchase tax related to CO2 emissions (to encourage continued development and sales) and the VED scrapped in favour of extra fuel taxes (to encourage reduced use)?
Radiorentals used to rent/lease out TVs. I doubt if they still exist but I got the impression that they were very popular in their day! Not for me, but then neither is leasing a car.