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The Department for Transport (DfT) is pursuing policy initiatives to "put Britain at the forefront of a green motoring revolution" by encouraging a mass market in electric and hybrid vans.

Last week, newly appointed transport secretary Geoff Hoon announced a £100m government spending commitment to make greener vehicles a reality. "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," he says.

The DfT's vehicle procurement programme, managed by Cenex, is aiming to spend £20m on the demonstration and use of lower carbon vans in the public sector.

Hoon adds: "Vans make up around 15% of road transport emissions in the UK, and their emissions are rising more than any other mode of road transport. That's why 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."

A shortlist of 10 firms will be seeking a share of the funding: Ashwoods, Citroën, Ford, Land Rover and Mercedes-Benz to supply low-carbon vans; Allied Vehicles, Electric  Vehicles, LDV, Modec, Nissan and Smiths to supply all-electric vans.

Local authorities in Liverpool, Newcastle, Gateshead, Coventry, Leeds and Glasgow, along with Royal Mail, HM Revenue & Customs, Metropolitan Police, Transport for London, the Environment Agency and the Government Car and Despatch Agency, will be part of the first phase of the programme.

The DfT also wants to spend £20m on technical innovation to make electric and other green vehicles more practical and affordable, saying recent research shows the UK power system could support widespread use of electric vehicles without "needing lots more power stations".