The government is set to introduce E10 fuel containing 10% ethanol as a new form of “cleaner” petrol aimed at cutting carbon dioxide emissions.

Grant Shapps, the transport secretary said the government was consulting on plans to make it the standard grade at British filling stations from 2021.

The new petrol, he said, had the potential to reduce CO2 emissions by about 750,000 tonnes per year or the equivalent of 350,000 fewer cars on the road.

Petrol grades in the UK currently contain up to 5% bioethanol, known as E5. The E10 blend is already used in countries including Germany, France, Belgium and Finland. Shapps said the proposed new fuel was a steps towards “a net zero future”.

“Before electric cars become the norm we want to take advantage of reduced CO2 emissions today,” Shapps said.