FRENCH fleets will be encouraged to use environmentally friendly electric or hybrid cars as part of an aid scheme aimed at promoting environmentally friendly transport.

The European Commission (EC) has given French authorities the green light to establish an aid scheme designed to limit greenhouse gas emissions connected with the transport sector.

The French Environment and Energy Management Agency (Ademe) will run the scheme and grant aid worth more than 20 million Euros a year until the end of 2007.

It will promote a series measures designed to encourage the development of clean and economical vehicles.

The EC said: 'The scheme will give local authorities the opportunity to take better account of the environmental dimension in transport projects, will financially support the development of combined transport and modal transfer operations and encourage individuals and companies to acquire electric or hybrid vehicles and make use of other low-fuel technologies.'