Consumers who buy energy-efficient cars will have access to discounted loans under a new taxpayer-backed scheme.
Lender Firstmac and the Clean Energy Finance Corporation have agreed to a $50 million "finance partnership" to provide cheaper loans for initiatives that reduce emissions.
Firstmac managing director Kim Cannon said about $25 million would be spent on cheaper loans for environmentally-friendly cars.
"We anticipate the agreement will provide loans for several thousand low-emission vehicles, as well as finance for installing solar power and energy efficient business equipment," he said.
Passenger vehicles that emit 141 grams or less of carbon dioxide per kilometre are eligible
Loans for low-emission cars would be available at a rate of just under 6 per cent, he said.
Passenger vehicles that emit 141 grams or less of carbon dioxide per kilometre are eligible, as are utes and vans that emit no more than 188 grams.
Environmental group the Climate Council welcomed the announcement.