Drivers of zero-emission cars are to have a green "flash" added to the left hand side of their number plates to show they are eligible to by-pass congestion zone charges or secure cheaper parking.
The change, which will be introduced in the Autumn, is aimed at making the switch to electric vehicles more appealing.
Announcing the decision the Transport Secretary Grant Shapps said: "A green recovery is key to helping us achieve our net zero carbon commitments while also promoting economic growth.
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