Electric vehicles will be fitted with green licence plates from the autumn, in a bid to encourage more drivers to make the switch.
Announced by transport secretary Grant Shapps on 16 June, the green plates are designed to make it easier for cars to be identified as zero emission.
This in turn will help local authorities put in place new policies to incentivise their usage – such as cheaper parking and cost-free entry into zero-emission zones.
The plates will be identifiable by a green flash on the left-hand side and are only available for zero emission vehicles.
Grant Shapps said: “A green recovery is key to helping us achieve our net zero carbon commitments while also promoting economic growth.
“Green number plates could unlock a number of incentives for drivers and increase awareness of cleaner vehicles on our roads, showing people that a greener transport future is within our grasp.”
The Government has also announced £12 million in funding to develop greener vehicles and help improve vehicle charging technology.
The funding, made available through the Office for Low Emission Vehicles (OLEV), includes £10 million for projects which support advancements in both battery electric and hydrogen vehicles, as well as charging infrastructure.
OLEV is also providing £2 million to small and medium businesses to support their research into zero-emission vehicles in areas such as battery technology – which could be used by major vehicle manufacturers in future electric vehicle production.
Mr Shapps added: “We’re supporting small businesses to develop the transport tech of the future through a multi-million pound investment, ensuring that UK businesses remain at the forefront of low carbon innovation and research.”