The government has announced plans to accelerate the development of the low carbon vehicle market by committing £100m of public money to incentivise the automotive industry and consumer demand.

Speaking yesterday at a meeting of international experts in Whitehall, the Transport Secretary, Geoff Hoon, set out the government's initial steps which include: a £10m scheme to encourage manufacturers to develop electric and ultra low carbon vehicles (under 50gCO2/km); and a £20m investment in research aimed at making green cars more practical and affordable.

The scheme will invite car manufacturers to bid to participate in demonstration projects, which will provide 100 electric cars to UK towns and cities, allowing families and other motorists the opportunity to feedback on the practical steps needed to make greener motoring an everyday reality.

"Electric cars and other low carbon vehicles, like plug-in hybrids, cut fuel costs and reduce harmful emissions. If we can inspire more people to use them, it will help us to make a positive impact on climate change." said Hoon.

Adding: "Alongside this… research and manufacture is an emerging industry with the potential to create new jobs and safeguard existing employment in the UK… exploring how to ensure [low carbon vehicles] are a practical and affordable everyday option makes sense all round."

The government believes that the measures, which are part of a wider plan to develop the UK's low carbon economy, could create up to 10,000 new British jobs, and estimates that around a million green jobs could be generated by 2030.

Secretary of State for Business, Lord Mandelson, said: "Investment in greener motoring forms part of our plan to put the UK at the forefront of the new low carbon revolution. We know our automotive sector has a global reputation for taking forward new technology and we want the UK to be at the heart of new developments in electric vehicles."

The Government has already committed to removing the barriers that could slow a changeover to greener motoring, including facilitating the roll-out of electric vehicle charging infrastructure through the planning system. It aims to collaborate with other countries in developing international standards and considering how best to encourage the right consumer market to promote electric and other low carbon vehicles.

Work is also underway with energy companies and the National Grid to assess the impact on the electricity system of the widespread use of electric vehicles. New research suggests that, if appropriately managed, the system would have the capacity to support widespread uptake of electric cars and their associated charging requirements.

In another move, the Department for Transport also announced yesterday that 10 companies have been shortlisted to bid to provide electric and low carbon vans to councils and other public sector bodies, such as the Royal Mail. As part of a £20m programme, councils in Liverpool, Newcastle, Gateshead, Coventry, Glasgow and Leeds will be among the first to trial green vans on their streets.

"Vans" said Hoon, "make up around 15% of road transport emissions in the UK, and their emissions are rising more than any other mode of road transport… we are committed to this new programme to help kick-start the market. In the public sector there is considerable demand for vans so we want to use our spending power to lead the way in developing lower carbon options that will appeal across the board."

Evert Geursten, co-founder of the electric car company NICE, manufacturers of electric scooters, cars and vans, welcomed the government's plans. He said: "Despite the economic downturn, government knows it can't afford to postpone action on climate change… Electric vehicles are emissions-free, but also a recession-busting form of transport with motoring costs a fraction of those for standard petrol and diesel models. It's a winning combination that benefits the environment and our customers today."

Others, however, are less than impressed with the government's commitments. George Monbiot, a staunch environmentalist and government critic, said it was "crazy" that car manufacturers were being subsidised to reduce emissions: "Years ago, in 1998, the industry promised it would make a radical cut in the amount of carbon dioxide its cars are producing. It's broken that promise, and now the government is paying it to do what it should have been forced to do through regulation."

"Subsidies are what governments pay when they don't have the guts to regulate powerful industries. Instead of saying `You must do that and we're the government and we're telling you what to do`, they're saying `We'll pay you a bribe please go ahead and do it`. There isn't even any guarantee that this bribe will produce the right results."

BBC, DfT, NICE

500 of BMW's new electric MINIs, or `MINI Es`, will be produced and trialled in selected US cities throughout 2009, with a view to gathering data on performance and a potential mass-market release.

The MINI E, which will initially be made available to `select private and corporate customers` in California and New York, will be powered by a 150 kW (204 hp) electric motor fed by a rechargeable lithium-ion battery. Specially engineered for automobile use, BMW claim the technology will provide a range of more than 240 kilometres, or 150 miles.

The lithium-ion storage unit will have a maximum capacity of 35 kilowatt hours (kWh) and will produce a direct current at 380 volts, allowing the car to accelerate to 62 mph in a speedy 8.5 seconds. The maximum speed will be electronically limited to 95 mph.

The car can be charged at a standard power outlet, although participants in the trial will be provided with a `wallbox` that will be installed at their home, enabling a higher amperage and providing a full recharge in two-and-a-half hours.

Production of the trial cars, which will take place at the company's Oxford and Munich sites, is scheduled for completion before the end of 2008. The 500 trial models will be available as two-seaters, with the back-seats being reserved for the battery packs.

MINI's UK plant will be responsible for manufacturing the vehicle with the exception of the drive components and the lithium-ion battery. Each unit will then be transferred to a BMW plant in Munich where it will be fitted with an electric motor and battery units.

BMW is hopeful that the trial will allow them to measure and analyse driver behaviour in order to gain an accurate picture of the demands that will be placed on the vehicle; engineers will apparently accord high importance to staying in touch with drivers on a regular basis to get feedback.

The company say that the trials could be a precursor to a mass-market release of the vehicle and that they are currently considering the viability of making the car available in Europe.

`Putting some 500 cars on the road under real daily traffic conditions will make it possible to gain widely applicable hands-on experience… which will be factored into the engineering of mass-produced vehicles.`

Lothian and Borders Police Force have purchased a Vectrix electric maxi-scooter as part of their drive to reduce transport emissions and ease traffic congestion in Scotland's capital.

The all electric maxi-scooter is the fist zero-emissions vehicle to be procured by the force. Lothian and Borders intend to train two or three officers in the use of the Vectrix, which will directly replace a petrol patrol car covering 20-30 miles daily.

Patrols will be centered on Scottish parliamentary areas where there are large numbers of pedestrians. In and around the parliament buildings the Vectrix will provide a safer and more interactive method of patrolling, with the added benefit of reducing noise and air pollution in the vicinity.

A representative from the Force said they felt an electric car might not have been best suited to the undulating environment of Edinburgh and that a scooter would provide both the performance and the range required to ensure they delivered the highest level of public service.

Dignan McCulloch, Fleet Manager, Lothian & Borders Police, said: "Organisations across the country are focussing on improving their carbon footprint, the implementation of the Vectrix as a direct replacement for a car is a substantial achievement and goes a long way in helping us to reduce our carbon output. The Vectrix is very easy to use and has excellent visibility, it looks the part and we are looking forward to putting the bike into service and exploring other opportunities for further implementing Vectrix bikes both at Edinburgh Airport and the Royal Infirmary."

Lothian & Borders Police are the second police force in Scotland to invest in the Vectrix technology, Strathclyde Police already uses two Vectrix maxi-scooters to patrol BAA Glasgow Airport.

Alex Bamberg, Managing Director of Vectrix UK, said: "Lothian & Borders have identified key areas where the Vectrix can replace four wheel vehicles reducing both emissions and congestion within Edinburgh city centre… Scottish organisations are really surging forward in their pursuit of environmental and cost effective forms of transportation."