The French government's 'clean vehicle' campaign will include the taxation of diesel fuel according to new reports.

French Prime Minister Jean-Pierre Raffarin confirmed that a tax increase of 2.5 centimes/l. on diesel fuel for private cars in the country's draft budget for 2004.

Raffarin went on to say that the €800 million generated from the tax will be dedicated to developing rail freight in an attempt to reduce sulphur dioxide and other particles emitted by diesel-fuelled cars.

The ministries of the Environment and Research, Transport and Industry will manage the programme, which has been allocated €40 million of funding, to be spent over five years.

Diesel-fuelled cars currently account for about half of the automobiles driven in France with purchases of such cars rising at a rate of 3 per cent each year.

A total of €11 million and €5.8 million respectively has been set aside in the budget for research into catalysts and fuel cells.

France expects to raise €155 million during the next two years through the possible creation of a tax on the heaviest polluting vehicles.

The intention is to create less-polluting private vehicles within a 10-year span.