More than 500 low carbon buses will be running on England's roads by 2012 as part of the government's plan to boost green local transport.

Some £46 million in public funding has been granted for the acquisition of 542 low carbon buses, which use a third less fuel and emit 30 percent less CO2 emissions than diesel equivalents, transport minister Norman Baker announced.

Six bus operators and 20 local authorities have been granted a share of the cash and Mr Baker claims all areas of England will benefit from the scheme.

He described the green buses as being "the perfect combination of targeted investment that help people make the transport choices that are good for society as a whole", thanks to their ability to both lower CO2 emissions and create jobs.

Low carbon buses are already in operation in London, Manchester, Oxford and Reading.

The government estimates around 20 percent of the annual C02 cuts taking place between now and 2020 will come from the transport sector, with road travel expected to be "largely decarbonised" by 2050.