Fleets wanting to go green could be entitled to financial help from the government after the European Commission authorised subsidy payment to fleets wanting to improve the environmental performance of their vehicles beyond standards required by EU law.

Under the new rules, governments could fund part of the cost of these additional improvements: up to 55% for small businesses, 45% for medium-sized and 35% for large companies.

Governments would not have to ask Brussels’ permission to issue these subsidies as they do now.

These rights will come into force within weeks.

EU competition Commissioner Neelie Kroes said: "These new rules…allow member states to grant aid targeted at improving the environment...”

The subsidies could cover the additional cost of acquiring new vehicles (over the price of those just meeting EU environmental standards) and the cost of retrofitting old vehicles.