The UK has announced more than £46 million (US$75.3 million) in funding to help put 542 new low carbon buses on roads across England by March 2012, the government said in a statement.

The money is part of the Government's drive to target investment in new projects that promote green growth and encourage use of sustainable local transport, the statement added.

Under this project All English regions will benefit with funds which have been paid to 20 bus operators and 6 local authorities, it said.

My vision is for a transport system that cuts carbon and creates growth, Transport Minister Norman Baker said.

Low carbon buses emit around 30 per cent fewer greenhouse gas emissions than standard diesel buses and use around a third less fuel - that is why it was so important to kick-start the market, Baker added.

The Government's Green Bus Fund is a scheme through which bus operators and local authorities bid for grant to help them purchase new low carbon buses. A Low Carbon Emission Bus (LCEB) is a bus that is able to achieve the LCEB target for Greenhouse Gas Emissions, which is equivalent to a 30 percent reduction in its Greenhouse Gas Emissions compared to a current Euro 3 diesel bus of the same total passenger capacity. These buses will all meet the latest air quality standards, delivering at least Euro V EU emission standards.

143 buses supported by the Fund are now in operation in Greater Manchester (51 buses), London (50 buses), Oxford (27 buses), Reading (6 buses), Leeds (6 buses) and Durham (3 buses). Alexander Dennis Limited will benefit most from the Fund, having received 53 percent of the funded bus orders. Optare received 27 percent of the orders and Volvo/Wright Bus received the remaining 20 percent.