More than 150 "green" buses are to come into service following £15 million of additional Government funding announced today.
The low-carbon vehicles will emit 50,000 fewer tonnes of carbon dioxide than conventional buses over a 15-year period.
An initial £30 million of Government money announced last year is currently supporting the introduction of around 350 new low-carbon buses.
The £15 million announced today will be available for bus operators and local authorities in England.
Transport Minister Norman Baker said today: "We want to support new transport technologies to help make our transport system greener and more sustainable.
"This investment will stimulate the market for low-carbon buses by reducing some of the initial costs for operators and councils.
"It will deliver significant benefits, in particular reducing the impact of road transport on climate change and improving air quality."