A GREEN fund of £500 million a year should be created to promote alternative fuels and remove dependence on petrol and diesel, the RAC Foundation has claimed. The call comes a week before the arrival of the 60-day deadline from fuel protesters demanding action on diesel and petrol taxes, on Monday, November 13.

Amid fears of further price rises and more protests, the RAC Foundation has joined forces with Greenpeace to call for a new green fuel fund. The campaign is timed to follow Brown's pre-Budget Statement next Wednesday.

Funds would be used for a six-point plan to give drivers an alternative to conventional fuels. It would help convert existing vehicles to run on road fuel gases, such as liquefied petroleum gas, encourage drivers to purchase gas-powered vehicles and give them incentives for doing so, increase the gas refuelling network, increase use of electric vehicles and begin work on hydrogen distribution in preparation for fuel cell vehicles.

Edmund King, executive director of the RAC Foundation, said: 'We have asked the Treasury to introduce targeted help to those dependent on the car. Greenpeace, like the RAC Foundation, supports increased spending on public transport, but realises it will not directly benefit many car drivers.

'The Government needs to offer something to drivers, who at present often have no real choice other than petrol or diesel vehicles.'