I suspect you mean CO instead of CO2
The levels allowed are in the tables here
https://www.gov.uk/government/uploa...t_data/file/194133/Emissions_17th_Edition.pdf
Smelling rich can be a number of things:
1) It's idling rich - for 1975-1985 you can idle quite rich up to 4.5% CO
2) It's idling lean - you can get a lean misfire which means every now and gain it will fart out a piston's worth of unburned fuel. If its doing this it should probably fail on HC emissions unless you're lucky
3) It's missing at idle (mine does this every couple of seconfs on electronic points but not on good blue lucas ones) again it will cough out a piston's worth of air/fuel mixture
4) It's leaking petrol from somewhere but its not coming out of the exhaust, carburettors do make a smell
Popping on the overrun is (kind of) a good sign really, it means your carb is doing its job and shutting off most of the fuel on the overrun. That requires the vacuum advance to kick in and pull the distributor to full advance, this is often not quite enough. Try ADVANCING your timing (not retarding as OSD says). You may find it starts to pink then though so a bit of faffing may be in order. If advancing won't clear up the popping check your points gap and try new spark plugs (I've just fitted a set of NGK BPR6ES for less than a quid each - get the resistor ones and you can hear the radio!).
The pop on overrun is caused by the mixture being very lean (the economy valve in the carb senses that there is a high vacuum and cuts almost all fuel off). Lean fuel takes more time to burn and is harder to ignite so is quite often still expanding when the exhaust valve opens, that leads to the rumbling the louder pops are that it didn't get lit by the spark at all or not properly and is ignited by the hot exhaust instead....I think it sounds good, certainly people know you're coming!
Whatever I do I can't get it to not pop on the overrun and never pink at the same ignition setting. I find I get best drive and mileage when there's just a bit of both.