UK motorists are set to be offered up to £5000 to encourage them to buy electric or hybrid cars
The plan is due to start in 2011 when a new generation of electric cars is available.
Business Secretary Peter Mandelson and Transport Secretary Geoff Hoon announced the plan in Scotland as part of a 250 million pound scheme to cut emissions and at the same time help the struggling motor industry.
The plan also sets aside 20 million pounds for charging points across London, and infrastructure to develop a network of what the UK government calls "electric car cities".
A national demonstration project will give a small sample of some 200 motorists the opportunity to drive a cutting-edge car and give feedback to the industry.
Still, the incentives aren't enough for some. "The cash that Geoff Hoon is offering to motorists would only put 26,000 new electric cars on the road - that's just 0.1% of the total number of cars in the UK," said John Sauven, Greenpeace's executive director.