Transport secretary Chris Grayling has announced a £290m investment plan to support lean and green vehicles as part of the Government's target for nearly all cars and vans to be zero emission by 2050.
He said £150m will go towards cleaner buses and taxis including new vehicles as well as retrofitting existing engines to reduce nitrogen oxide emissions.
The plan includes investing £80m in improving charging infrastructure for electric car owners and £100m will support driverless vehicle technology.
This investment follows the announcement last month of an increase in the number of electric charge points for vehicles.
Mr Grayling said: 'We are absolutely determined to reduce carbon emissions from transport as part of our ongoing commitment to tackle climate change.
'This government is committed to improving air quality and reducing pollution in towns and cities, which is essential for people’s health and the environment.
'We are already making headway through our investment in low emission vehicles, greener public transport and walking and cycling, as well as grants for innovative advanced biofuel projects.'
Poppy Welch of the campaigning group Go Ultra Low said the announcement was 'fantastic news for motorists.'