Car manufacturer Saab has informed the government of the action it thinks should be taken in the Budget this year, with its own ‘Biofuel Budget’.
The automaker outlines three initiatives it believes should be pursued â€“ firstly the reduction of the tax on bioethanol fuel at the pump, as some other European countries such as Germany and Sweden have done.
Drivers should also be encouraged to opt for flex-fuel cars, according to Saab, through measures such as discounts on company car tax, reducing vehicle excise duty and incentives for private purchasers.
The manufacturer also called for the expansion of the bioethanol infrastructure to be supported, as incentives are needed to increase the number of refuelling pumps in the UK and also encourage the local production of the fuel.
Jonathan Nash, managing director of Saab GB, said: "I understand that policy-makers are grappling with a range of tough environmental and social challenges, but the fact remains that transport emissions are still increasing.
"It is time for the UK government to take hard action and make a financial commitment to offset the cost of going green."
Mr Nash described bioethanol as a fuel that can make an "immediate and substantial contribution to reducing CO2 output from road transport".