Local authorities in England are being invited to bid for a share of £5 million for projects that help cut emissions from bus fleets and taxis.
Up to £500,000 is available for any one authority to fit pollution-busting technology to treat exhaust fumes or convert vehicles to run on cleaner fuels.
The cash is being provided from the Department for Transport’s (DfT) Clean Vehicle Technology Fund, building on the £7.3 million awarded last year through the Clean Bus Technology Fund.
Transport Minister Baroness Kramer said this is the Government’s latest step in “making our air cleaner”.
She added: “This £5 million will mean less harmful exhaust fumes from buses and other vehicles, in some of our most polluted urban areas. This funding will also secure jobs and growth in the industries delivering the technology.”
Earlier this year the Government said it would invest £500 million between 2015 and 2020 in the ultra-low emission vehicles (ULEVs) industry.