The commission found Germany’s plans to support the purchase of vehicles and infrastructure to be in line with EU state aid rules.

Set up by Germany, with a budget of €70m to support public transport operators until the end of 2021, the scheme will cover the costs for electric and plug-in-hybrid buses and related electric charging infrastructure.

Commissioner Margrethe Vestager said: “This scheme is another positive example of how to fight global warming.

“In line with the EU environmental goals, it will give public transport operators an incentive to invest in low or zero emissions vehicles with the clear objective of reducing CO2 emissions and improving air quality.”

The project is in line with the European Strategy for low-emission mobility and supports the move towards zero-emission vehicles in cities. The commission said energy efficiency is key to Europe’s clean energy transition and a central element for achieving the Paris Agreement pledge to cut emissions in the EU by at least 40% by 2030.

Ten of Europe’s major economies hand out €6.3bn in coal subsidies every year, including €1bn in funds intended for low-carbon sources, the Overseas Development Institute said last year.