Governments around the World are all doing their bit to promote so-called greener motoring.

In Toronto, the government has put forward a plan to give low-emissions cars and trucks a special eco-license plate. This plate would entitle the driver to particular perks such as free parking, access to high-capacity commuter lanes or no annual vehicle registration fees. It is hoped that the initiative will help curb pollution in the area, however the plan will only be put into place if the Liberals are re-elected.

Meanwhile in the UK, the government is planning to slash VAT from 17.5% to just 5% on sales of the least polluting vehicles. The list will be based on CO2 emissions figured published by the Vehicle Certification Association. The EU has limits on the number of products that can have their VAT cut however new Prime Minister Gordon Brown is hoping to extend the tax break to cars and white goods that have low energy or emissions ratings.

The British government is also looking at changing the pence-per-mile paid to employees who drive for business in their own eco-friendly vehicles. Currently, this rate is 40p for the first 10,000 miles but new proposals say eco-friendly vehicles may receive 55p per mile, adding up to £1,500 to annual expenses claims. Standard vehicles would also gain with the rate rising to 45p/mile. Only drivers of the most polluting vehicles would lose out with their rate set at 30p/mile.

Spain is also looking at an emissions-based tax policy to encourage people to drive cleaner models of car whilst discouraging those driving high-polluting vehicles.

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